B&B owners in Devon and Cornwall are raising alarms over a proposed 'holiday tax' by Rachel Reeves, which they believe could be detrimental to the hospitality industry. The tax would empower city mayors, such as Sir Sadiq Khan of London and Andy Burnham of Manchester, to impose levies on overnight stays at hotels and guesthouses starting in 2027. Local business owners, including Joby Godolphin, who runs a B&B in St Ives, Cornwall, argue that this additional cost could deter tourists and negatively impact the local economy, which relies heavily on tourism. According to Cornwall Council, tourism accounts for 15% of the region's economy, with over 500 B&Bs operating in the area. The Confederation of British Industry (CBI) estimates the levy could add £500 million annually to the cost of UK vacations, potentially increasing a family’s two-week stay by £100. Critics, including 200 hospitality leaders, have urged the government to reconsider, emphasizing that the tax could lead to job losses and tighter profit margins for businesses. While similar taxes exist in places like Manchester, the government has yet to finalize the design of this proposed levy, which is intended to help fund local infrastructure and tourism benefits.