England’s mayors will soon have the power to introduce a levy on overnight stays, enabling investment in transport, infrastructure and the visitor economy, the government has announced today ahead of today’s Budget.
The proposed fee would apply to overnight trips at accommodation providers, including hotels, holiday lets, bed and breakfasts and guesthouses. Local leaders will decide whether to implement the charge, ensuring flexibility for each area.
The move brings England in line with global cities such as New York, Paris, and Milan, where tourist levies are already commonplace. Research shows that reasonable fees have minimal impact on visitor numbers, while generating funds for local improvements.
Steve Reed, Secretary of State for Housing, Communities and Local Government, said:
“Tourists travel from near and far to visit England’s brilliant cities and regions.
“We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”
England attracts over 130 million overnight visits annually, and money raised through the levy could fund projects that enhance communities and improve visitor experiences, helping attract more tourists without requiring central government approval.
Examples of potential uses include:
- London: Upgrades to iconic streets, support for entertainment, sport, and cultural venues, including smaller venues.
- Liverpool: Infrastructure improvements and support for major events such as UEFA EURO 2028.
Mayor of York and North Yorkshire David Skaith commented:
“A visitor levy in York and North Yorkshire will be a total game-changer for our region. We’re home to beautiful towns, villages and cities and receive 41m visitors a year as a result.
“A small charge on overnight stays could revolutionise how we deliver transport, support businesses, invest in infrastructure and the visitor economy. Building the healthy and thriving communities for our residents and everyone that comes to visit them.”
The announcement is part of the government’s wider mission to devolve power, giving local leaders control over spending decisions. A 12-week consultation will allow businesses, communities and stakeholders to have their say on how the measure should work.
Image credit: iStock
