Levy on overnight trips “will help mayors invest in local growth” – UK Government

England’s mayors will soon be able to introduce a levy on overnight stays, giving them new powers to invest in transport, infrastructure and the visitor economy.

The measure would apply to visitors staying in hotels, holiday lets, bed and breakfasts and guesthouses, with local leaders deciding whether to introduce the charge in their area. The move brings England in line with international cities such as New York, Paris and Milan, where tourist levies are already commonplace, and is part of the government’s wider mission to devolve power and give communities more control over local investment.

Secretary of State for Housing, Communities and Local Government Steve Reed said the powers would allow mayors to harness the strength of England’s visitor economy, which attracts more than 130 million overnight visits each year, and reinvest in local priorities. Research suggests reasonable fees have minimal impact on visitor numbers, while the money raised could fund projects that improve communities and enhance tourist experiences. In London, revenue could support improvements to busy streets and smaller cultural venues, while in Liverpool it could help fund major events such as UEFA EURO 2028 and strengthen local infrastructure.

The announcement has been welcomed by mayors across England. London Mayor Sadiq Khan said the levy would directly support the capital’s economy and cement its reputation as a global tourism and business destination. Liverpool City Region Mayor Steve Rotheram noted that cities such as Barcelona and Paris raise tens of millions each year through similar schemes, and argued that a modest levy would stay local and be reinvested in culture, events and infrastructure. 

West of England Mayor Helen Godwin described the powers as a vote of confidence in her region, where tourism is worth £2.7 billion annually, while North East Mayor Kim McGuinness said even a small charge would transform the welcome offered to visitors and support ambitions to double the size of the visitor economy.

York and North Yorkshire Mayor David Skaith called the levy a “gamechanger” for his region, which receives 41 million visitors a year, while West Yorkshire Mayor Tracy Brabin said the measure would unlock opportunities and help businesses thrive. Greater Manchester Mayor Andy Burnham highlighted the city’s £9 billion visitor economy, supported by over 100,000 jobs, and said the levy would allow investment in infrastructure such as cleaner streets and later-running buses and trams.

Businesses, communities and others with an interest in the measure can have their say on how it should work, with a consultation running for 12 weeks.  Exemptions will apply to emergency accommodation, homeless shelters and registered Gypsy and Traveller sites used as primary residences, with mayors also able to introduce further local exemptions. 

The government says the measure is another step forward in its mission to devolve power, giving those who know their areas best the tools to invest in growth and improve the visitor experience for years to come.