Let us tax visitors on overnight stays in England, mayors say

Independent

05-06-2025

A coalition of mayors has called for powers to be given to local authorities to create visitor levies across England, in an attempt to boost tourist infrastructure and regional growth.
The group of mayors from around the country, led by Liverpool City Region Mayor Steve Rotheram, is calling on the government to grant devolved powers to allow regions to create a visitor levy, which could see a small charge added to overnight stays.
Mr Rotheram said the overnight charges are 'the kind most of us wouldn't think twice about when travelling abroad' and 'would give us the power to reinvest directly into the things that make our area so special'.
Other mayors have echoed his sentiment. Sadiq Khan, the mayor of London, said: 'A modest overnight accommodation levy, similar to other international cities, would boost our economy, deliver growth and help cement London's reputation as a global tourism and business destination.'
A similar law is already in place in Scotland, passed in 2024, which allows councils to tax overnight accommodation if they wish to do so. Edinburgh has already made headway with this power, voting in January to add a five per cent surcharge on visitors' overnight stays by 2026.
A bill has also been proposed by Welsh lawmakers to introduce a small visitor levy that could see visitors to the country paying up to £1.25 per night by 2027.
The mayors say England is 'at risk of falling behind' as Scotland and Wales move ahead with their own tourism levies, so are calling for rapid action from the central government.
The mayors have argued that the powers to create a visitor levy would unlock 'vital' funding for tourism and cultural infrastructure and drive regional growth, as well as reduce dependence on funding from the central government.
English legislation does not allow cities to create a visitor levy; however, using legal workarounds has meant Liverpool and Manchester have introduced a form of tourism levy.
The city councils both introduced a tourism-based Business Improvement District (BID), using existing legal power to establish a form of tourist tax that allows hoteliers to charge £1 (in Manchester) or £2 (in Liverpool) per night as part of a 'city visitor charge'.
The mayors said that the BID visitor levy in Liverpool has received strong backing, while in Manchester, a recent survey revealed 70 per cent of tourists are willing to pay a small charge if it is used to visibly enhance tourism services.
However, the local authorities are hoping to see devolved powers to create visitor levies written into law.
The campaign is backed by the mayors of the Liverpool City Region, Greater Manchester, London, the North East, the West Midlands and West Yorkshire.
'These regions collectively attract hundreds of millions of visitors annually and contribute billions to the UK economy,' the group said. 'Yet none currently benefit from a dedicated funding stream to reinvest in tourism resilience and growth.'
The Liverpool City Region predicts that a visitor levy could raise nearly £11 million per year for the area from the over 60 million visitors it receives annually.
Greater Manchester says that a £1 to £5 overnight tax could raise between £8 million and £40 million per year, which could help fund key infrastructures such as the regeneration of Old Trafford or airport development.
Over in the capital, the group said tourism accounts for one in seven jobs and nearly 12 per cent of London's economy, whereas visitor economies stand at £6.1 billion in the North East and £16.3 billion in Birmingham.