Mayors given power to impose new overnight visitor tax across England

10 September 2026 , 08:16

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Mayors given power to impose new overnight visitor tax across England

Mayors will be given powers to impose an uncapped "overnight visitor levy" on anyone staying in hotels, holiday lets and bed and breakfasts in England.

The tax will apply to all overnight visitors to towns and cities that decide to impose the levy, applying to each night of the stay.

British families will have to pay - as will people staying in hotels for work.

A government source said "it will be up to local leaders and local voters" in England "to decide what is right for their area".

Mr Burnham was mayor of Manchester when the City Visitor Charge was introduced in April 2023 - a £1 per room, per night fee - to pay for measures aimed at attracting more visitors.

The plans have sparked fury in the hospitality industry.

Trade body UK Hospitality warned earlier this year that a tax would raise the cost of holidays as households continue to face cost‑of‑living challenges.

The boss of one leading holiday firm told the Telegraph: "There will be a jobs bloodbath at a time when they’re trying to get young people into work."

Shadow Chancellor Andrew Griffith said it was "propping up dodgy town hall finances on the back of even higher youth unemployment."

Sir Keir Starmer first proposed introducing local tourist taxes in 2025.

Mayor of London Sir Sadiq Khan supports a tourist tax on overnight visitors, which could raise more than £350m a year for the capital.

In Scotland, local authorities have the power to introduce a visitor levy on overnight accommodation set as a percentage rate. Edinburgh has brought in a 5% levy capped at five nights.

In Wales, a capped levy of £1.30 per person per night is set to be introduced in April next year.

Thomas Brown

Head of Investigations