English mayors set for new powers over overnight visitor levies
Constantvpn.com – People staying overnight in parts of England could face an additional charge on accommodation under plans expected to give regional mayors the ability to introduce local visitor levies. The proposals would allow mayors to decide whether a charge is suitable for their area and how the proceeds should be used.
The measure, often referred to as a tourist tax, would apply to overnight stays rather than day visits. It is expected to be set as a percentage of the accommodation price, instead of a single fixed amount per night. Ministers believe that approach would place a smaller extra cost on lower-priced stays than on more expensive hotel rooms or short-term lets.
There would theoretically be no maximum rate written into the proposed system. However, the expectation within government is that mayors would be unlikely to set a levy at a level that makes visiting their areas substantially less attractive.
Local choice at the centre of the proposal
Further details are expected after Housing Secretary Angela Rayner meets regional mayors on Thursday. The policy is part of a broader push for devolution, with local leaders being offered greater influence over funding and decisions affecting their communities.
“It will be up to local leaders and local voters” in England “to decide what is right for their area”.
That local discretion means the charge would not automatically apply across England. A mayor could choose not to create a levy, while another could design one around local circumstances and priorities. Areas with large visitor economies may view the policy as a way to generate money for projects connected to tourism, public spaces, transport or other local services.
The planned Overnight Visitor Levy was included in the King’s Speech in May. It would make holidays in England more costly in places where a mayor chooses to use the power, although the final effect on a visitor’s bill would depend on the rate selected and the price of the accommodation.
Sir Keir Starmer’s government first raised the idea in November. Sir Keir had intended to bring forward legislation before Andy Burnham replaced him as prime minister, but the bill has not yet been introduced. No 10 has previously said local leaders would be able to present plans explaining how levy revenue would be spent by March 2028.
Manchester provides an existing English example
Andy Burnham already has direct experience of a visitor charge from his time as mayor of Manchester. The city introduced its City Visitor Charge in April 2023, setting it at £1 per room for each night stayed. The income was intended to support measures designed to bring more visitors to the city.
Supporters of wider mayoral powers argue that visitor levies can give regions an additional income stream without placing the full cost of local improvements on residents. Mayors have said the money could help back local priorities and contribute to economic growth.
The policy also reflects a familiar model overseas. Overnight accommodation levies are used in many destinations across Europe and beyond. New York, Amsterdam and Rome all apply charges to stays in visitor accommodation, with funds used to help meet local needs and support services.
London is widely viewed as one of the places most likely to consider the new power. Mayor of London Sir Sadiq Khan supports a levy on overnight visitors. Analysis published in January by Central London Forward, which represents 12 central London local authorities, suggested that a 3% charge on hotel rooms and short-term lets could bring in more than £350m a year for the capital.
For travellers, a percentage-based levy would mean the amount paid rises with the cost of the booking. A visitor in a lower-cost room would pay less than someone booking premium accommodation. The government argues this offers greater protection for budget breaks than a flat nightly fee, though any added cost may still matter to households planning a short domestic trip.
Hospitality sector raises concerns
The plan has drawn criticism from the hospitality industry. UK Hospitality warned earlier this year that an extra levy could make holidays more expensive while many households continue to deal with cost-of-living pressures.
The trade body said additional charges could weaken the competitiveness of destinations in the UK and make domestic short breaks less appealing, especially for families and younger travellers. Businesses will also be watching for practical details, including how any levy is collected, whether local systems differ between regions and how revenue decisions are communicated.
The case for a locally controlled charge will therefore depend not only on its rate, but on whether visitors and businesses can see a clear benefit from the money raised. If a mayor adopts the power, local leaders would be expected to explain the intended investment and make the case for why the charge is appropriate for that destination.
Scotland and Wales already moving ahead
Scotland has already created a framework allowing local authorities to introduce a percentage-based visitor levy on overnight accommodation. Edinburgh became the first Scottish city to introduce the charge in July. Guests staying in hotels, bed and breakfasts and self-catering accommodation pay an additional 5% on the original booking price, with the charge limited to five nights.
Glasgow is also preparing to bring in a 5% visitor levy, scheduled to begin in January 2027. The Scottish examples offer a useful guide to how an English system might operate, while England’s proposal would place the decision-making role with mayors.
Wales is taking a different approach. A visitor levy capped at £1.30 per person per night is due to start in April next year. Unlike a percentage charge, that model gives travellers a predictable fixed addition for each overnight stay.
England’s proposed powers would leave the final choice in local hands. For visitors, the result could be a more varied picture across the country: some destinations may retain current prices, while others could add a levy linked to the value of an overnight booking. For mayors, the central question will be whether the new revenue can be used in a way that strengthens the places visitors come to enjoy.
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