Preliminary plans for a tourist tax in England are set to be unveiled on Thursday, granting regional mayors the authority to impose a levy on overnight visitors. Under the proposed framework, local leaders would determine how the revenue generated from the fee is reinvested into their areas.
The initiative, described as a “tourist tax,” was originally introduced by Prime Minister Sir Keir Starmer’s administration in November. It mirrors existing schemes in Scotland, where visitor levies are calculated as a percentage of accommodation costs rather than a flat rate. The government argues this percentage-based approach will safeguard budget-conscious travelers, though there is no statutory cap on the rate.
Prime Minister Andy Burnham views the policy as a central component of his broader devolution agenda. While Sir Keir had intended to advance legislation before leaving office, the bill has not yet been introduced. Downing Street previously indicated that local authorities would have until March 2028 to submit their investment plans.
Detailed proposals will be released following a meeting between Housing Secretary Angela Rayner and regional mayors. A government source emphasized that the decision rests with local leaders and voters, who will decide what is appropriate for their communities.
The concept of the Overnight Visitor Levy was featured in the King’s Speech in May, signaling that holidays in England could become more expensive if municipalities choose to implement the charge. Proponents among regional mayors argue the tax is essential for generating income to support local priorities and stimulate economic growth.
Similar overnight charges are widespread internationally, with cities such as New York, Amsterdam, and Rome utilizing them to fund local services. In Scotland, Edinburgh became the first authority to introduce a 5% levy in July, capping the charge at five nights per stay. Glasgow is scheduled to implement its own 5% levy starting in January 2027.
Meanwhile, Wales plans to introduce a capped levy of £1.30 per person per night beginning in April of next year. These developments follow Manchester’s implementation of a £1 per room per night City Visitor Charge in April 2023, which the city uses to fund measures aimed at attracting tourism.
March 2028 feels ages away. I just hope my next trip to London doesn’t cost an arm and a leg by then.
Interesting how Scotland is already doing this. Do you think English tourists will avoid holidaying at home now?
Wait, is this just another tax hiding in plain sight? I feel like they could have been more transparent about the percentage.
Finally, a fair way to fund local infrastructure. Tourists benefit from our cities, they should help pay for them.