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England mayors could gain power to set an overnight tourist levy

The levy would be charged as an uncapped percentage of accommodation costs, and local leaders would decide how the revenue is reinvested.

Reported · Written up by our desk · North America

England’s government plans to give mayors in England the power to introduce an overnight visitor levy on tourists, with more details expected after the Housing Secretary Angela Rayner meets mayors virtually at No 10 North.

Hospitality leaders warn the proposal could raise costs for families and put jobs at risk. They argue the levy could be used at levels that increase holiday prices, despite ministers saying budget holidays would be protected since the charge is not a flat fee.

Under the plans, the levy would be calculated as an uncapped percentage of the cost of hotels, bed and breakfasts, and other accommodation. Local leaders would also decide how the revenue is spent, and Prime Minister Andy Burnham is framing the policy as part of a broader devolution agenda.

The overnight visitor levy was outlined in the King’s Speech in May but has not yet been brought forward in Parliament. The government would require mayors to clarify by March 2028 how they will spend the new revenue, and existing examples include voluntary charges in Manchester and Liverpool.

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