Stay, See, Pay, England Mayor Get Green Light for Tourist Tax

Mayors across England are set to gain new powers to impose a levy on visitors staying overnight, with the government arguing that the additional revenue could be reinvested into local communities, public services and tourism infrastructure. Under the proposed system, local leaders would be able to introduce an uncapped tourist levy based on a percentage of the cost of accommodation, rather than applying a fixed charge. The levy could cover hotels, bed and breakfasts and other forms of overnight accommodation, while mayors would have the option to introduce exemptions for places such as campsites. The government says the structure would protect cheaper holidays by ensuring that lower cost accommodation pays the lowest levy. Revenue could subsequently be directed towards high streets, public spaces, attractions, street cleaning, transport and other services used by both residents and visitors. Local Government Secretary Angela Rayner said the measure would allow mayors to raise and reinvest money according to the needs of their areas, arguing that local leaders are best placed to decide where additional funding should go. However, the proposal has attracted strong criticism from parts of the hospitality industry, which fear that an uncapped charge could increase holiday costs and put jobs under pressure. Hospitality Industry Warns of Higher Holiday Costs UKHospitality has warned that the policy could have a significant impact on families and businesses. Its chief executive Allen Simpson estimated that the levy could add around £100 to £120 to the average family holiday in England, depending on how individual mayors use their new powers. The organisation has also raised concerns that holiday parks and other accommodation providers could face difficulties during the quieter periods of the year if additional charges make stays more expensive. Critics argue that local authorities already face financial pressures and could be tempted to increase the levy substantially to generate additional revenue. Conservative politicians have also opposed the proposal, describing it as an additional burden on an industry already subject to high taxation. Reform UK leader Nigel Farage said the party mayors in Greater Lincolnshire and Hull and East Yorkshire would not introduce the levy, calling it a holiday tax. Mayors Divided Over Tourist Levy The response among England mayors has been mixed. Some Labour mayors have welcomed the additional financial power, while others have stressed that they want consultation with businesses and residents before making a decision. Liverpool City Region Mayor Steve Rotheram has backed the idea, suggesting that a modest levy could raise as much as £18m a year for the region. He said the money could be invested in events, culture, visitor experiences and infrastructure designed to attract more tourists. The mayors of West Yorkshire, London and the West of England have also indicated that they intend to introduce a levy. In South Yorkshire, Mayor Oliver Coppard said consultation with industry would be important before implementation, with potential spending areas including street cleaning and night time bus service. Meanwhile, York and North Yorkshire Mayor David Skaith said additional revenue could support town centres and public services, but stressed that no decision would be made without public consultation and further engagement with the hospitality sector. London Mayor Lord Khan has called for the power to be introduced as soon as possible. He is understood to support a maximum levy of around 5%. Tourist Taxes Already Common Elsewhere The proposal would bring England closer to systems already operating in several other parts of the UK and around the world. Edinburgh introduced a 5% visitor levy on overnight stays in July, covering hotels, bed and breakfasts and self catering accommodation, with the charge capped at five nights. The measure has received a mixed response. Supporters argue that it can generate additional investment in the city, while some organisations in the tourism and cultural sectors have raised concerns about the financial pressures facing visitors and businesses. England already has voluntary visitor-charge schemes in Manchester and Liverpool. These arrangements are business led, with participating hotels choosing to pool money to support local tourism. Outside the UK, overnight visitor charges are also used in major tourist destinations including New York, Amsterdam and Rome, although many European schemes operate with defined limits. A New Revenue Stream or Another Holiday Cost? The government argument is that tourist levies can turn visitor spending into a dedicated source of funding for the places tourists use and enjoy. Supporters say better transport, cleaner streets, improved public spaces and stronger cultural attractions could ultimately make destinations more attractive to visitors. Opponents, however, warn that the additional charge could make English destinations less competitive, particularly for families and budget conscious travellers. The absence of a national upper limit has also become one of the central points of concern for the hospitality industry. Local leaders will have until early 2028 to clarify how revenue raised through the system would be reinvested, while the government is expected to introduce legislation to establish the new powers. For visitors, the message could ultimately be simple- England may offer more attractions and better funded tourist destinations but holidays could come with an extra line on the