England's mayors to be given power to introduce tourist tax
The levy would be set as a percentage of accommodation costs, and local leaders would decide how the revenue is spent.
- On Thursday, the government plans to empower mayors in England to introduce a percentage-based visitor levy on overnight accommodation. Local leaders will decide how to reinvest revenue to support priorities and economic growth.
- Part of a wider devolution agenda, the policy allows regions to raise income for local priorities. Prime Minister Andy Burnham frames this as a growth tool, mirroring schemes used in cities like Amsterdam, Rome, and New York.
- Unlike Manchester's £1 flat fee, the new levy charges a percentage of accommodation costs. London could raise more than £350m annually with a 3% rate, while Scotland already charges 5% in Edinburgh.
- Trade body Hospitality warned earlier this year that taxes risk "undermining international competitiveness" and discouraging domestic breaks. The Overnight Visitor Levy could make holidays more expensive, adding costs for families facing cost-of-living challenges.
- Housing Secretary Angela Rayner meets mayors Thursday to discuss implementation details. Officials stated local leaders will be "able to set out plans for how revenues will be invested by March 2028.
22 Articles
22 Articles
Why Burnham is making holidays more expensive
Having spent the summer trying to ease the cost of living, is a new tourist tax about to hit domestic holiday makers in the pocket? The government is giving mayors additional powers to introduce a levy on hotel stays, with no cap on how much they can charge. With the tourism industry already angry, Sam […]
Burnham and Rayner to hand Mayors new powers to tax tourists
Andy Burnham’s government is set to hand Mayors across England fresh powers to introduce a controversial tax on tourists. Housing secretary Angela Rayner will meet the nation’s mayors today, where the government is expected to outline proposals for an overnight fee led by local leaders. The levy will be charged as a percentage of the [...]
Evening Standard
Mayors to be given power to impose tourist tax
Mayors will decide the percentage and how to invest the revenue raised.
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