Business leaders have rallied against a scheme they say would hit the Sussex tourist industry hard. The Audit Commission has proposed a "bed tax" - a tax on hotels and guest houses - as a way of propping up the council tax system.

But the Brighton and Hove Economic Partnership says the tax, already operating in the US and Europe, would be unpopular.

It said: "A figure of 10 per cent tax on the cost of a room is being mooted but no official figure has been declared.

"Industry analysts estimate that this would add £100 on to the cost of a family holiday in the UK."

Tuesday, March 14, 2006