The UK is consulting on giving England's mayors power to add an overnight visitor levy.
Why it matters: The plan could raise costs for hotels and short-stay accommodation in cities that choose to use it. Hospitality groups warn it could also hit demand and jobs if visitors cut trips.
- The government is consulting on a power for mayors in England to levy an overnight charge on paid accommodation.
- The proposal would cover hotels and Airbnb-style stays and would be enabled through devolution legislation and local mayoral decisions.
- UKHospitality says a 5% tourist tax would put England among Europe's higher-rate visitor levies.
- Ministers say the revenue could help fund local growth, transport and public services.
The UK government is consulting on whether mayors in England should be able to impose an overnight visitor levy on paid accommodation, including hotels and Airbnb-style stays. The proposal is not yet law. In its consultation, the government says any charge would be introduced through devolution legislation and then adopted, if at all, by individual mayoral areas.
Hospitality groups have pushed back. UKHospitality says a 5% visitor levy would be among the higher rates in Europe and argues it could weaken demand for overnight stays. The trade group has also warned the move could affect jobs across hotels and related businesses.
Ministers say the measure is meant to give local leaders a new revenue tool. In its announcement, the government said the levy would help mayors invest in local growth and could support transport, public services and visitor infrastructure. The government says tourism generated an estimated £58 billion of UK economic output in 2023 and £127 billion across related industries. The announcement says the charge would be locally determined rather than a national flat tax.
The debate now centers on whether a locally set visitor levy can raise money without discouraging trips to cities that adopt it.
By the numbers
- 5% - the level UKHospitality says would make England's levy one of Europe's higher visitor taxes.
- £58 billion - estimated UK economic output from tourism in 2023, according to the government.
- £127 billion - output across related industries linked to tourism, according to the government.
Yes, but: The jobs warning comes from industry opposition, not independent evidence in the dossier, so it should be treated as a claim rather than a proven outcome.
What's next: The consultation is open now; any levy would still need devolution legislation and local mayoral decisions before it could be introduced.