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England to let mayors impose nightly tourist tax on hotels and Airbnbs

newsSep 10, 202621213

The government will give mayors in England the power to introduce an Overnight Visitor Levy on tourists, allowing local leaders to set an uncapped charge as a percentage of the cost of hotels, bed and breakfasts and other accommodation rather than a flat fee. Ministers say details will follow after Housing Secretary Angela Rayner meets mayors at No 10 North and that mayors would decide how any revenue is reinvested, with local leaders required to explain by March 2028 how they will spend the proceeds. The proposal, first raised in November, mirrors schemes in Scotland and many European cities and follows voluntary local schemes such as Manchester’s £1 per room per night and Liverpool’s £2 nightly charge. UKHospitality warned the measure could put jobs at risk and estimated it might add about £100 to £120 to the cost of an average family holiday in England if mayors use the lack of an upper limit aggressively. Ministers argue that using a percentage rather than a flat fee protects budget holidays and that mayors are unlikely to set very high rates; supporters including Mayor of London Sadiq Khan say the power is needed for devolution and local growth. Opponents such as Westminster leader Paul Swaddle warned local businesses and residents could see no benefit if revenue is not shared with councils. The next concrete steps are the government’s detailed announcement after the No 10 North meeting and the requirement for mayors to publish spending plans by March 2028.

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