Mayors in England Could Be Allowed to Charge an Overnight Visitor Levy on Paid Accommodation

The government has announced plans to give mayors across England the ability to introduce an Overnight Visitor Levy on paid accommodation, including hotels, bed and breakfasts and similar commercial stays. Unlike a flat nightly fee, the proposed model would allow mayors to set a levy expressed as a percentage of the cost of a stay.

Officials present this as a devolution step that transfers fiscal choices to local leaders. The stated aim is to create a revenue stream that can be reinvested in local priorities: high streets, transport links, public spaces and visitor attractions are specifically mentioned as possible uses. The government says the percentage-based approach is intended to protect lower-cost stays by ensuring cheaper accommodation attracts lower charges.

London's mayor, Sadiq Khan, welcomed the measure and argued the capital should have the same fiscal flexibility as other major global cities. He described a "well-designed, modest levy" as a way to raise funds to support infrastructure, culture and visitor management. Khan also committed to consulting boroughs, accommodation providers and hospitality and tourism businesses before any local decision.

Industry voices have been strongly critical. Commercial operators such as Paul Harper of Daish's Holidays publicly oppose the plan. Harper and others warn that adding a charge during a cost-of-living squeeze risks reducing demand for UK breaks and could harm coastal towns that rely heavily on domestic tourism.

Officials pointed to precedents in other countries where visitor levies exist, including cities across Germany, the United States, Italy, the Netherlands and Canada. That comparison underpins the government argument that the powers would bring English cities into line with international practice.

The announcement has generated mixed political signals. Some mayors and local leaders see the levy as a tool to fund local priorities without relying on national grants. Hospitality operators and some coastal business leaders are mobilising to oppose new charges, citing potential demand loss and economic harm. Further debate will centre on levy design (percentage level, exemptions, administration), the distribution of revenue, and any conditions ministers may attach when granting powers.

• Parliamentary consideration of legislation granting the powers.

• Industry analyses or independent assessments of likely economic impact at regional level.
• Any government decisions on levy design details, including exemptions for low-cost accommodation or short stays.