Devon’s Liberal Democrat MPs are to lobby the government in a bid to scupper plans for a tourist tax which some industry insiders say could wash out the summer season for seaside resorts.

According to proposals set out in the King’s Speech, the government plans to grant Mayoral authorities across England the power to introduce a local overnight visitor levy which is designed to fund local services, transport, and the visitor economy.

Tourists using hotels, B&Bs, short-term rentals and campsites would pay the tax at a level set by the local elected Mayor. Resorts like Torbay, which are controlled by a conventional council rather than a Mayor, could also be handed the power to set and collect a tourist tax.

Liberal Democrats initially supported the imposition of a tourist tax and had it in their election manifesto.

But now they say circumstances have changed, and the time is not right for the launch of an extra charge on visitors.

“We’ve had the hike in National Insurance, a rise in business rates and an economy which is continuing to flat-line,” said Torbay Lib Dem MP Steve Darling.

“We are now significantly more sceptical.”

Local MPs say that while a tourism tax may have little effect on well-heeled visitors on short breaks and holidays in London, it could be a step too far for the less affluent families who traditionally choose to spend time in Devon and Cornwall.

The UK’s hospitality sector is already subject to a higher VAT rate than places such as Ireland, Italy, Spain and France.

“To put another charge on top of that seems absolutely crazy,” said Mr Darling. “In Devon a lot of our tourists come from the West Midlands and South Wales, and they don’t have such deep pockets as those wandering around Westminster.

“Is this levelling up, or is this going to make it even harder for places like Torbay to compete?

“Devon’s Liberal Democrat MPs are highly sceptical about this, and are looking to tell the government that it is a bridge too far for the tourist industry in the county.”