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10/Sep/2026


Mayors in England will be given the power to impose a new fee on visitors' overnight stays, in a move the government says will mean more money can be invested into local areas.

Under the plans, local leaders will be able to bring in an uncapped levy, dubbed a "tourist tax", as a percentage of the cost of hotels, bed and breakfasts and other types of accommodation rather than a flat fee.

Hospitality leaders have warned it will put jobs at risk and hit families in the pocket.

But the government said it would protect budget holidays "by making sure low-cost accommodation always pays lowest levy" and said the extra cash could be invested in high streets and local transport.

Local Government Secretary Angela Rayner said: "This measure will give mayors the choice to raise and reinvest funding where it's needed most.

"It'll help support the local services, public spaces and attractions that both residents and visitors rely on, with decisions taken by people who know their area best."

Some mayors have backed the move, while others have expressed caution or signalled they will not bring it in.

Local leaders, including heads of Foundation Strategic Authorities where there is no mayor, will need to clarify by early 2028 how the revenue raised should be reinvested.

They will also be allowed to offer exemptions, such as for campsites.

However, mayors will not be allowed to exempt whole localities within their regions from the tax, to avoid creating confusion for visitors and businesses.

The government said it would introduce a bill to Parliament "in due course" to bring in the levy.

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