The Government is to give mayors in England the power to introduce an uncapped overnight visitor levy, dubbed a "tourist tax," on hotels, bed and breakfasts and other accommodation, BBC News has reported. The levy would be charged as a percentage of accommodation costs rather than a flat fee, with local leaders deciding how the revenue raised should be reinvested; mayors would need to clarify by March 2028 how they intend to spend it. Housing Secretary Angela Rayner was due to meet mayors virtually on Thursday afternoon to discuss the plans, which Prime Minister Andy Burnham is framing as part of his wider devolution agenda.
UKHospitality's chief executive, Allen Simpson, warned the levy could add between £100 and £120 to the average cost of a family holiday in England, and cautioned that "jobs are now at risk" as a result.
The Mayor of London, Sir Sadiq Khan, who was due to attend the Downing Street meeting, told the Standard the policy "needs to happen sooner rather than later."
Cllr Paul Swaddle OBE, Leader of Westminster City Council, responded by warning "there will be precisely zero benefit to Westminster residents and businesses" if the Mayor does not share some of the revenue raised with councils.
Manchester and Liverpool already run voluntary overnight charging schemes, introduced at £1 and £2 per room per night respectively; similar levies are already in place in Edinburgh, at 5 per cent capped at five nights, and are due to launch in Wales next April at £1.30 per person per night.
England's mayors to be given power to introduce tourist tax
"There will be precisely zero benefit to Westminster residents and businesses" if the Mayor of London does not share some of the revenue raised from the new tourist tax with councils said Cllr Paul Swaddle OBE, Conservative Leader of Westminster City Council.
Read the full BBC News coverage by Jack Fenwick, Ewan Somerville and Chris Graham online.
