The cost of holiday park breaks could double after Rachel Reeves announced a new tourist tax in the budget on Wednesday (November 26). The Chancellor confirmed the rise of Air Passenger Duty and new tourist tax regulations, with industry sources saying the rise would be "scary".

Locally-elected mayors across the UK have been given power to enforce a tourist tax and renivest the money into their areas. The levy applies to paid accomodation, including hotels, B&Bs, holiday lets, guesthouses and holiday parks. However, industry sources have criticised the tourist tax rise, which is set to be £2 extra a night, as it could "destroy holiday dreams".

As reported by The Sun, a senior holiday park executive said: "This tax will destroy holiday dreams, putting a short break at the seaside out of reach for many. Have they put Basil Fawlty in charge of boosting tourism?"

Local authorities in North Yorkshire and West Yorkshire are in favour of introducing the tax. This means that popular resorts such as the Dales, Scarborough, Whitby and Filey could be hit.

The tax will impact families taking the cheapest holiday park breaks. A family of four can enjoy a four-night break for roughly £49 in low season, including a £40.80 charge and 20% VAT.

However, the new tax of £2 a night will add £32 to the holiday. This will bring the total to £81, which works out as a tax rate of 98.5% - an increase of 65% on what people pay currently.

Meanwhile, the tax cost for a family of six on the same four-night break would be £48. This would increase the price of the holiday to £97.

Ben Spier, Head of Policy and Regulation at Sykes Holiday Cottages, said: "This levy won’t just be felt by families already managing rising household costs. It threatens to deter people from choosing holidays in the UK which would be a serious blow for the many communities that depend heavily on spending from the overnight visitors who will face this levy.

"The UK’s tourism and hospitality businesses are already among the most heavily taxed in Europe, facing everything from steep business rates and corporation tax to some of the highest VAT levels in the sector.

"Adding a new tourism levy risks putting more pressure, and more admin, on the many small businesses – from holiday let owners to local pubs, shops and attractions – who rely on a thriving visitor economy. And all this, for a relatively small extra return from visitors who still choose to come."

He added: "Rather than adding another cost for visitors, disincentivizing them when the aim is to attract more of them, the focus should be on ensuring that the substantial tax income already generated is properly directed to the local communities where it’s generated."