A Scarborough bed and breakfast owner has said businesses like his will face an "uneven playing field" if a so-called tourist tax is introduced in North Yorkshire but not in neighbouring East Yorkshire.

A consultation on plans for a visitor levy closed in February and legislation is expected to be brought forward later this year.

James Rusden, who runs Scarborough's Toulson Court B&B, said if the levy was not England-wide, cost-of-living pressures would mean some visitors would instead go where no tourist tax was being charged.

A government spokesperson said: "We're listening to businesses in Yorkshire and across the country on this so we make sure money raised is invested in local priorities."

Rusden said he believed such a levy would act like "a form of taxation".

"Nobody likes an extra cost and people will complain about it," he said.

"But if it was an even playing field it would be a lot better as it would be easier to manage and control.

"People are short of money. To put a tax on them coming on holiday makes them think twice about where they go.

"If someone is coming to Scarborough but has to pay a levy each night, but can go to Bridlington where there's no levy, then that's where they'll go.

"It's unfair and it'll make it harder for us to compete."

Rusden said he was also concerned about the time the levy could be introduced, as people continued to struggle with the cost of living and faced further increases to energy bills.

A record season at Scarborough's Open Air Theatre, with its string of sold-out shows, had kept some North Bay B&Bs in business this year, Rusden said.

"We have a fantastic reputation and have won some good awards," he said.

"But we've discussed whether one of us has to go out and get a job to make up the difference and run the business differently.

"People used to come for four or five nights, they're now knocking a night off. They just can't afford it."

York and North Yorkshire's elected Labour mayor David Skaith said he believed a visitor levy "could be a total game-changer for us".

"York and North Yorkshire is beautiful, with something for everyone. Millions of people visit every year," he explained.

"Our visitor levy report was commissioned to understand the drawbacks and opportunities of the levy. We are taking time to review the feedback before we take our next steps."

However, Luke Campbell, Reform UK mayor for Hull and East Yorkshire, has previously said a levy would "not be the right approach" for his region.

Prof Brendan Paddison, Dean of York St John University's business school and chair of York Tourism Advisory Board, said research at the university has found a need to keep the tourism industry engaged in "decision-making and governance processes" around any proposed visitor levy.

"It also found a need that some of that funding that is perhaps raised through a levy is ring-fenced to support the industry and the work it does," Paddison said.

In Scarborough's North Bay, Phil and Carol Smith said they would still visit the resort even if a tourism levy was introduced.

Visiting from Derbyshire along with Logan the border terrier, Phil said he and Carol were married in Scarborough, stayed there at least three times a year and called the town their "second home".

Phil said he did not think a levy of £1 to £2 a night on an overnight stay would stop them making the trip.

"I'd rather not pay it, but that's nothing. A pint of Guinness is almost six quid, what's a pound? We feel comfortable here, everyone's so friendly."

However, both Phil and Carol questioned how and where the money would be invested, saying, for instance, that Scarborough needed more public toilets.

"It's a busy town. Some more places to sit, and especially some more public toilets, would be money well spent," Carol said.

Meanwhile, Charlie Highnett, who lives in East Yorkshire, said he would shop around accommodation providers for a cheaper deal in North Yorkshire in a bid to offset the cost of any levy.

"We really like coming to Scarborough, but it would be disappointing to pay any extra," he said.

"People want to come here and enjoy their holidays. I don't think any additional tax is needed, but if it is introduced it should be unified – not just one county."

He added that there should be "some alignment and joint decisions made".

Rod Fretwell, visiting Scarborough from his home in Bolton, said if the levy was being implemented nationally, he would support it.

"But if it singles out some businesses, like hotels and bed and breakfasts, and doesn't cover others, and it's not national – so you can go down the road and they don't charge it – then it shouldn't be done," he said.

Paddison said the findings of the consultation in North Yorkshire would provide "key industry insights" into the implications of any levy being introduced.

"There will also be learning from other countries and other areas in Europe that have a levy and the impact it's had – not just in terms of visitor numbers and the revenue generated, but how that money's spent," he said.

Skaith said: "We must get this right, because if we do, we can invest in what makes our county a fantastic place to live and visit like never before."

The government spokesperson said ministers were "delivering the biggest transfer of power, funding and responsibility from Westminster in a generation".

Mayors' new powers to introduce such a levy would mean local people benefited "even more" from tourism to their area, they said.

"When places grow their economies, they keep more of the rewards and can invest in what matters most to their communities."

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