A PLAN to charge Lake District companies to finance environmentally friendly travel and infrastructure is a "stealth tax" which threatens the area's economy.

That is the view of a host of prominent business leaders, who have expressed their concern about the proposals, which feature in the Lake District National Park Authority's draft local plan.

Henry Wild, who operates Skelwith Fold Caravan Park, said while he was supportive of much of the scheme, he feared the LDNPA was planning to introducing a "tourism tax by stealth."

“As a tourism provider in Cumbria, I find myself nodding in agreement with many of the proposals set out in the LDNPA draft local plan," said Mr Wild.

"There has been a genuine attempt to reconcile the need to protect this beautiful but fragile landscape with the economic and employment benefits visitors bring.

"However, alarm bells do start to ring when I read the authority would like to usher in an extra charge payable by businesses for developing or expanding their enterprises.

"The charge is benignly described as a “financial contribution” towards sustainable travel and infrastructure. But from where I’m sitting, it looks mightily like a tourism tax by stealth.

"In other words, firms already heavily burdened by locally payable business rates will now have to reach even further into their pockets to improve or grow. For many, there will be no option but to reflect this additional cost in their prices – and their customers will find themselves paying a tourism tax by stealth.”

And Ben Berry, director of sales and purchasing at English Lakes Hotels Resorts & Venues, said many key tourist developments in the area might well not have come to fruition if the plan had been in place.

"There are many parts of this plan that are concerning," said Mr Berry.

"Top of that list is the proposed additional taxes for those that expand their business.

"This proposal is celebrated and promoted by those that want the National Park to be a museum, left as it is, which is a clear and present danger to the economic success of the park and the livelihoods of those that rely on it.

"If this policy was in place many of the developments that have come forward in recent years such as Windermere Jetty, Lakeside YMCA and Low Wood Bay would surely not have left the drawing board.”

Rob Johnston, Chief Executive of Cumbria Chamber of Commerce, said the group understood the ethos of the plan but would closely monitor its progress.

"This isn’t a new idea," he said.

"The National Park already secures developer contributions under the existing Local Plan.

“What it’s proposing in the new Plan is that contributions from tourism developments in the busiest areas of the Lake District would be ringfenced to fund public realm and traffic management schemes in those areas.

“We know from a transport survey we carried out last year that businesses along the A591 corridor are keen to see such improvements.

“But it’s vital that developer contributions are set at a level that doesn’t deter the development from going ahead.

“We’ve sought assurances from the National Park and they’ve told us that contributions would have to pass a test of reasonableness to ensure they don’t damage the viability of developments.

“Typically, developers would pay a levy of 0.8 per cent of the total cost of their project. Smaller schemes, below 75 sq metres, wouldn’t pay anything.

“On that basis, the policy is workable and would give developers clarity before they start drawing up their plans.”

Mr Johnston pointed out that the national park authority could use developer contributions as match funding to draw down investment from the Government.

"Businesses will benefit from that,” he said.

Hanna Latty, LDNPA Team Leader Strategy and Planning Policy, explained the authority's position.

"We already secure developer contributions through our existing Local Plan," she said.

"These include seeking financial contributions to reduce the impact of new developments, which creates extra demands on local facilities.

"However, there is a need to provide clarity and guidance for developers, landowners and planners about how a fair contribution will be secured.

"We are therefore seeking to provide certainty and transparency about how and when these levies will be applied and what they will be spent on.

"We’ve held workshops with local businesses as part of this process and feedback from these sessions has helped shape these proposals and ensures they do not impact on future developments in the Lake District.”

The draft plan, entitled 'Living Lakes: Your Local Plan', covers a wide range of initiatives designed to develop the National Park and it is currently at the consultation stage, which ends on June 3.