Mayors in England to gain authority over new tourist levy

The UK government is set to grant England’s elected mayors the power to introduce a tourist levy on accommodation providers, a move aimed at generating revenue for local infrastructure and tourism promotion. According to BBC News, the legislation would allow each mayoral combined authority to decide the rate and scope of the charge, with no national ceiling on the amount that can be levied.

Hospitality industry representatives have voiced strong opposition, arguing that an unrestricted levy could erode employment in hotels, B&Bs and short‑term rentals. They caution that higher fees would likely be passed on to guests, making family holidays more expensive and potentially deterring visitors from less‑affluent regions of England.

The proposal follows similar schemes already in place across the United Kingdom. Scotland introduced a per‑night visitor tax in 2018, while Wales and several English cities such as Bath and York have long collected charges to fund cultural and transport projects. Proponents argue that a locally controlled levy would give mayors flexibility to address the strain that rising tourist numbers place on roads, public transport and public services, especially in fast‑growing urban areas.

Tourism accounts for roughly 10% of England’s GDP and supports millions of jobs, according to data from VisitBritain. The sector has rebounded strongly after pandemic restrictions, prompting local leaders to seek new funding streams to keep pace with demand. Critics, however, point out that without a national cap, the tax could become a competitive disadvantage for England compared with neighboring regions that maintain lower or no visitor charges.

The next step for the plan is parliamentary debate, after which individual mayoral combined authorities will be invited to submit their own levy proposals. If approved, the first taxes could be implemented as early as next fiscal year, giving councils time to outline how the proceeds will be allocated to transport upgrades, heritage preservation and marketing campaigns aimed at sustainable tourism.

Stakeholders on both sides agree that the outcome will shape how England balances the economic benefits of tourism with the need to protect affordable travel options for families and preserve the viability of local hospitality businesses.