Could your area introduce a tourist tax?

Mayors and local leaders in England are to be given powers to introduce an overnight visitor levy, creating a new charge for people staying in short-term visitor accommodation.

The government announced the plans on 10 September 2026 following a consultation which closed on 18 February 2026. The levy will be optional, with mayors and leaders of Foundation Strategic Authorities able to decide whether to introduce it and how the money raised should be spent.

The charge will be based on a percentage of the accommodation cost rather than a fixed amount. The government says this approach is intended to avoid placing a disproportionate burden on people taking cheaper holidays. Local leaders will also have flexibility to provide exemptions, and temporary accommodation and shelters or refuges will not be subject to the levy.

Hotels and other accommodation providers will be responsible for paying the levy to the relevant strategic authority or mayor. The government says it will work with providers to make the system as straightforward as possible to administer.

Revenue could be used to support local priorities such as public transport, high streets, cultural attractions, public spaces and tourism infrastructure. However, the precise rate, exemptions and spending priorities will be determined locally in consultation with local businesses and residents.

Legislation will be introduced to establish the levy, with the government expecting mayors and Foundation Strategic Authorities to set out spending plans by early 2028. The levy represents an additional cost for visitors, but the amount and whether it applies will depend on where they stay.

Visitor levies are already being introduced elsewhere in the UK. A visitor levy in Edinburgh came into effect on 24 July 2026 and Cardiff Council is expected to introduce a visitor levy from 1 April 2027.