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England plans nightly levy on hotel and Airbnb stays
The levy would be charged as a percentage of accommodation costs, with ministers aiming to limit how expensive it becomes to protect budget holidays.
Hotels on England’s coast and other stays are set to face a nightly visitor levy under new plans ministers are due to outline, designed to give mayors authority over how any revenue is spent. The policy is being presented as a tourist tax and follows a similar scheme already operating in Scotland, with mayors able to set a fee for overnight visitors and decide where the money goes.
According to The Guardian Business, the overnight visitor levy was outlined in the king’s speech in May, and the proposal is expected to be rolled out after the housing secretary, Angela Rayner, meets mayors on Thursday. The outlet reports that Rayner is expected to explain that the charge will be based on a percentage of the cost of accommodation rather than a flat fee, a move intended to shield budget holidays.
The plans could still draw backlash from the hospitality sector, The Guardian Business notes, pointing to pressure on industry groups from prior tax rises and higher employment costs. UKHospitality’s chief executive Allen Simpson warned that the policy could put jobs at risk in some communities and said the tourism tax in Edinburgh is already having damaging effects.
Simpson also argued that the framework gives mayors broad power to set tourism taxes at any level, unlike capped tourism taxes in other European cities, and he contrasted that approach with what he described as the potential for an uncapped local tax. The outlet adds that Andy Burnham is likely to link the levy to a broader devolution agenda, and that No 10 previously said local leaders would be able to set out how revenues are invested by March 2028.