England’s mayors will soon be able to introduce a levy on overnight stays, giving them new funding to invest in transport, infrastructure and the visitor economy under plans announced ahead of the Budget.
The government says the measure will bring English destinations in line with major global cities such as New York, Paris and Milan, where visitor levies are already standard practice. The charge - described as a “modest fee” - would apply to overnight visitors staying in hotels, B&Bs, guesthouses and holiday lets, with proceeds ringfenced for local priorities.
Steve Reed, secretary of state for Housing, Communities and Local Government, said the move will put more power in the hands of regional leaders.
“Tourists travel from near and far to visit England’s brilliant cities and regions,” he said. “We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”
The government argues the levy will help mayors support local services and enhance visitor experiences without relying on additional central government approval. Research also suggests reasonable fees have minimal impact on visitor numbers, with England currently attracting more than 130 million overnight visits per year.
A 12-week consultation has been launched to help shape how the scheme will work, closing on 18 February. Emergency accommodation, homeless shelters and registered Gypsy and Traveller sites used as primary residences would be exempt, with mayors able to apply additional local exemptions as needed.
The announcement has been welcomed by mayors across the country, who say the levy will provide much-needed funds to support booming visitor economies and major events.
Mayor of London Sadiq Khan said the powers are “great news for London”, adding: “The extra funding will directly support London’s economy, and help cement our reputation as a global tourism and business destination.”
Liverpool City Region mayor Steve Rotheram said cities such as Barcelona and Paris raise “tens of millions” through similar schemes. “I’m pleased that the government has listened and acted - giving areas like ours the powers we need to support and grow our economies in a sustainable way,” he said.
West of England mayor Helen Godwin called the powers “a real vote of confidence”, while North East mayor Kim McGuinness said even a small levy would “transform the welcome we can give to people coming to North East England from all over the globe.”
York and North Yorkshire mayor David Skaith described the potential impact as “a total gamechanger”, with 41 million visitors a year to the region. West Yorkshire mayor Tracy Brabin and Greater Manchester mayor Andy Burnham also welcomed the move, with Burnham calling it “great news” for a city-region whose visitor economy supports over 100,000 jobs.
For event planners, business visitors and the wider meetings industry, the policy creates a new layer of local variation to consider when planning overnight stays - but also promises reinvestment in the very infrastructure and cultural assets that support events business.
The consultation is now open on GOV.UK.
