English mayors set to gain power to impose overnight tourist levy
The proposed percentage-based charge on hotel and Airbnb-style stays could fund transport and public services, but the hospitality industry warns it may raise costs and threaten jobs.
The UK government is expected to give English mayors the power to impose a percentage-based levy on overnight stays in hotels and Airbnb-style accommodation.
Housing Secretary Angela Rayner was expected to discuss the proposal with mayors on Thursday. The charge would be calculated as a percentage of accommodation costs rather than a flat fee, with ministers saying they do not expect it to become overly expensive.
Mayors would decide whether to introduce the levy and how revenue was invested. The funds could be directed towards transport and public services, while local leaders are expected to set out investment plans by March 2028.
The proposal was first raised by Keir Starmer’s government in November and appeared in the King’s Speech in May, but legislation was not introduced before Starmer left office. The participating areas and specific levy rates have not been confirmed.
UKHospitality chief executive Allen Simpson said the plans could put jobs at risk in some communities and reduce the viability of holiday parks. The organisation has also warned that a tourism tax could add to household costs.
Greater Manchester introduced a £1-per-room-per-night visitor charge in April 2023. Edinburgh introduced a 5 per cent tourist tax in July, while Welsh councils are due to gain powers to charge £1.30 per person per night from April 2027.
