England gives mayors power to add visitor levy
You’ve probably heard people call it a “tourist tax”. England is now sketching its own version. On 25 November 2025, the government opened a 12‑week consultation on giving elected mayors the option to add a small charge to overnight stays, with the proceeds kept and spent locally. The consultation is due to close on 18 February 2026, according to the government press release.
Here’s the simple idea: if you stay the night, you may pay a little extra. Under the proposal from the Ministry of Housing, Communities and Local Government, the charge could apply to hotels, holiday lets, bed and breakfasts and guesthouses. Mayors would decide whether to introduce it, set the details after local input, and spend the revenue on transport, public spaces and the wider visitor economy without needing new sign‑off from Whitehall.
Timing matters because this sits within the UK’s ongoing push to devolve power. Ministers also point out that big destinations already do this, including New York, Paris and Milan; across Europe, similar levies are commonplace and set locally.
What could your city spend it on? The government’s examples include London using funds to improve busy streets and support culture, including smaller venues. Liverpool could back major events such as UEFA EURO 2028 and strengthen the shared infrastructure visitors and residents rely on. These are illustrations, not decisions, but they show the kind of projects local leaders have in mind.
Who wouldn’t be charged is part of the design. The proposal exempts emergency accommodation, homeless shelters and registered Gypsy and Traveller sites used as primary residences. Mayors would also be able to add local exemptions so the scheme fits their economy and community.
For context, Scotland has already legislated. Edinburgh will introduce a 5% visitor levy from 24 July 2026, capped at the first five nights of any stay. Wales aims to bring in its own levy from 2027, and many European cities already use percentage or per‑night fees-Amsterdam’s hotel rate is 12.5% and Paris charges by rating. These examples don’t set an English rate; they show the range of approaches.
What might you actually pay? Because England hasn’t set a model yet, think in examples. If a city chose 2% and your room costs £120, that’s £2.40 per night. If it chose a flat fee of £2 capped at five nights, a four‑night stay would add £8. Any final choices would come after local consultation.
Will a levy put people off visiting? The government says research shows reasonable fees tend not to dent visitor numbers. Some in the hospitality and travel sectors argue the opposite, warning the UK could look less competitive. Both views deserve evidence, which is exactly what a consultation should surface.
If you run or work in accommodation, plan for the practical bits: itemising the levy on bills, updating booking systems and explaining it clearly at check‑in. In Edinburgh’s scheme, even businesses below the VAT threshold must collect the charge; England may choose differently, but it’s a useful operational reference as you prepare your response.
If you’re a visitor, budget a little extra on city breaks once and where a levy is adopted. Think of it as helping fund the services you’ll use-cleaner streets, better signage, later‑running buses or support for local venues. The government notes England receives over 130 million overnight visits a year, so even modest fees can add up to visible improvements when spent well.
Who decides and how you can have a say is the civics bit. Mayors and combined authorities would choose whether to introduce a levy and could tailor exemptions to local needs. You can respond to the consultation on GOV.UK up to 18 February 2026-students, residents, unions and businesses all count as stakeholders, so your evidence matters.
What happens next will depend on the consultation responses and each mayor’s timetable. Expect more detail after 18 February 2026 on rates, caps and how the money would be ring‑fenced. If you teach or study public policy, this is a live case study in how devolution turns into everyday services, from transport to culture-right down to the line on your hotel receipt.