A coalition of Mayors from across England – led by Liverpool City Region Mayor Steve Rotheram – is calling on the Government to grant devolved powers to explore and implement a visitor levy in their regions.
The group – representing nearly 21 million people across the Liverpool City Region, Greater Manchester, London, the North East, the West Midlands and West Yorkshire - argues that the move would unlock vital funding for tourism and cultural infrastructure, empower regional growth, and reduce dependence on central government funding.
In a united statement, the Mayors urged the Government to consider including enabling legislation in the forthcoming English Devolution Bill or a specific Finance Bill, which would give local authorities the freedom to design and introduce a locally administered visitor levy.
Currently, English legislation does not allow cities to implement a visitor levy. However, international examples, positive feedback from pilot schemes, and changing public attitudes all point to growing support for such a measure. In Liverpool, a Business Improvement District-led visitor levy received strong backing, while in Manchester, a recent survey revealed 70% of tourists are willing to pay a small charge if it is used to visibly enhance tourism services.
The approach is backed by the Mayors of the Liverpool City Region, Greater Manchester, London, the North East, the West Midlands and West Yorkshire, all of whom have thriving visitor economies. These regions collectively attract hundreds of millions of visitors annually and contribute billions to the UK economy. Yet none currently benefit from a dedicated funding stream to reinvest in tourism resilience and growth.
In the Liverpool City Region, which hosts over 60 million visitors annually, a visitor levy could raise nearly £11m per year to build on the success of international events like Eurovision 2023, which generated £54 million in direct economic impact.
Similarly, in Greater Manchester, for instance, a £1 to £5 per night levy could raise between £8 million and £40 million per year. Such funding could help deliver key infrastructure projects like the regeneration of Old Trafford or airport development.
In London, which sees a significant spillover of tourist spending into other UK regions, a levy could support a sector that accounts for 1 in 7 jobs and nearly 12% of the capital’s economy. The North East’s £6.1 billion visitor economy and Birmingham’s £16.3 billion economic contribution from tourism also stand to gain significantly from additional investment.
The Mayors propose that policy sprints be established in invested regions – including the Liverpool City Region, Greater Manchester, London, West Yorkshire and the North East – to co-develop tailored levy models. These would reflect the specific needs of each place, share best practices, and support the broader rollout of the levy across emerging and existing Mayoral Combined Authorities.
Funds raised through a visitor levy would be ring-fenced for local reinvestment. Potential areas of focus include:
- Supporting major cultural and sporting events
- Enhancing infrastructure that visitors and local people rely on
- International marketing to boost global competitiveness
- Collaboration with devolved nations to promote the UK as a unified tourism destination
- Skills development and business growth programmes
The Mayors emphasised the urgency of the request, especially as devolved governments in Scotland and Wales move ahead with their own tourism levies, leaving English regions at risk of falling behind.
The group is now calling for rapid engagement with HM Treasury and DCMS, alongside input from business and tourism stakeholders, to move the proposal forward and shape a more sustainable future for England’s visitor economies.
Image credit: Liverpool City Region Combined Authority
