Local mayors in England could soon gain the power to impose levies on visitors, following the announcement of the Overnight Visitor Levy Bill as part of the King's Speech. If passed this year, tourists in England may face an extra charge on overnight stays, similar to existing rules in Scotland and Wales, where local authorities have devolved responsibilities.
What Is a Visitor Levy?
The terms "tourist tax" and "visitor levy" are often used interchangeably, both referring to a charge on short-stay accommodation within a local authority area. Typically, it is a fee per occupied bed or room per night, collected by hotels or rental properties on behalf of the local authority. The revenue is usually reinvested into local resources such as infrastructure, public services, and tourism promotion.
Exemptions may vary but often include children, those travelling for medical reasons, or victims of domestic violence. The levy can be a flat rate or a percentage of the nightly fee.
Current Status in the UK
Edinburgh will become the first UK city to officially charge visitors for overnight stays under law in July 2026, followed by Wales in 2027. Meanwhile, some English cities like Manchester and Liverpool have already introduced similar charges through legal workarounds using Accommodation Business Improvement Districts (ABIDs).
Support for the England Tourist Tax
Mayors across England have voiced strong support. London Mayor Sadiq Khan stated, "Giving mayors the powers to raise a tourist levy is great news for London. The extra funding will directly support London's economy." West Yorkshire Mayor Tracy Brabin added, "By asking visitors to pay a small fee on overnight stays, we'll be able to invest more into making our regions even better places to visit."
Liverpool Mayor Steve Rotheram noted that the visitor economy in his region is worth over £6 billion annually and supports 55,000 jobs. Greater Manchester Mayor Andy Burnham emphasised that the levy would fund infrastructure improvements like cleaner streets and enhanced public transport.
Opposition to Tourist Taxes
Trade body UKHospitality called the introduction a "shocking U-turn," citing a previous government statement that there were "no plans" for such a levy. Chief Executive Allen Simpson said, "The Government has confirmed it will legislate to make family holidays more expensive during a cost-of-living crisis."
Abta, the travel and tour association, raised concerns that British tourism is already uncompetitive on cost. However, they acknowledged that reinvestment into tourism could deliver visible improvements. The Professional Association of Self-Caterers also urged further parliamentary assessment.
What Is an Accommodation Business Improvement District?
An ABID is a version of a Business Improvement District for hotels, where local enterprises pay into a fund for community projects. Unlike local authority levies, ABIDs are independent non-profits run by boards. In Liverpool, guests pay £2 per night, generating £9.2 million over two years, with £6.7 million supporting the visitor economy. In Manchester, a £1 per room per night fee helps attract events like the Brit Awards and NBA games.
Scotland and Wales
Scotland's Visitor Levy Act became law in September 2024, allowing councils to tax overnight accommodation from July 2026. Edinburgh will impose a 5% surcharge, Glasgow from January 2027, and Aberdeen a 7% levy from April 2027. Wales passed its bill in July 2025, with the earliest implementation in April 2027. Charges will be 75p per person per night for campsites and hostels, and £1.30 for other accommodation. Northern Ireland has no plans for a tourism levy.
