The UK Government has confirmed plans to introduce an Overnight Visitor Levy Bill, giving English mayors the power to impose a new charge on people staying overnight in accommodation such as hotels, bed and breakfasts, guest houses and holiday lets. During the King’s Speech on Wednesday, the Government confirmed that it would introduce the levy to "enable places to reinvest revenue in local priorities, support economic growth, strengthen public services, and improve the visitor experience".
The Government said it will help mayors and potentially other local leaders raise revenue to reinvest in their local economies and bring England into line with countries such as Scotland, Wales, and other international destinations where similar tourist taxes already exist.
The proposals would apply only in areas led by the 13 Mayoral Strategic Authorities in England, including London, Manchester and Liverpool, and would not be imposed nationally. Each mayor would decide whether to introduce the charge and set the rate locally.
Mayor of West Yorkshire, Tracy Brabin, said: "Mayors have made a strong case for the introduction of this levy as the first step toward fiscal devolution, and we're delighted the government has listened.
"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 - driving tourism and growth, unlocking opportunities, and helping our businesses thrive. This is a further vote of confidence in devolution and shows the government is backing mayors to deliver our ambitions."
Mayor of London, Sadiq Khan, said: Giving mayors the powers to raise a tourist levy is great news for London. The extra funding will directly support London’s economy, and help cement our reputation as a global tourism and business destination."
Mayor of the Liverpool City Region, Steve Rotheram, said: "Our visitor economy is worth more than £6 billion a year and supports over 55,000 local jobs. A modest levy is money that would stay local and be reinvested in the things that make our region stand out."
Following the King's Speech, UK Hospitality Chief Executive, Allen Simpson, said: “It’s a shocking U-turn after it told both the House of Commons and UK Hospitality that it would not implement a holiday tax.
“A holiday tax is wildly unpopular, as well as economically destructive. It is nonsensical for the Government to go ahead with such an unpopular measure.”
Joss Croft, chief executive of lobby group UKinbound, also said: “While we have not yet seen the detail of the legislation, UKinbound does not support further taxation on international visitors, who already contribute through one of Europe’s peak levels of VAT and some of the world’s highest visa and ETA (Electronic Travel Authorisation) fees and air passenger duty.
“As these powers are taken forward, the devil will be in the detail, including ensuring any levy is simple to implement, creates no additional cost burden for businesses, and that revenues are clearly reinvested into the visitor economy.”
In the 2025 Budget, the Government committed to a new overnight visitor levy and launched a consultation on its design. The government said the Overnight Visitor Levy Bill delivers on that commitment.
It will shortly publish a response to the consultation, setting out stakeholder views and providing further detail on the design and implementation of the levy, including a position on extending this power to Foundation Strategic Authorities.
According to the consultation published by the Government in November 2025, the visitor levy could apply to these 11 types of overnight accommodation:
