𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

British holidaymakers are facing a fresh hit to their staycation budgets as regions and cities across the country could introduce a new “tourist tax”. Under major fiscal devolution reforms announced by Andy Burnham’s Government on Thursday (September 10), local mayors and regional leaders will be handed sweeping powers to introduce an “overnight visitor levy” on holiday accommodation.

The move forms part of the English Devolution and Community Empowerment Bill, which will allow regional leaders to raise and spend revenue locally. The new fee will apply to tourists staying overnight in hotels, guesthouses and short-term holiday lets such as Airbnbs. The Government says the levy will be calculated as a percentage of accommodation costs — a measure designed to protect families booking budget staycations.

However, UK citizens will not be exempt from paying the fee when travelling outside their home regions.

Regions set to be affected include major urban centres and popular getaway spots across the nation, with maps highlighting widespread potential adoption across regions led by elected mayors. Among the primary areas understood to bring in the new charge are Newcastle, Durham, York, Leeds, Manchester, Liverpool, Bristol, Bath and London.

The policy has sparked a fierce backlash from the hospitality sector. Trade body UKHospitality warned that open-ended taxing powers could make British holidays significantly more expensive at a time when accommodation prices are already rising. Despite industry concerns, regional leaders have strongly backed the proposal, arguing that it brings English hubs into line with major global destinations such as Paris, Rome and Venice.

Edinburgh has started charging overnight visitors, at 5% of the accommodation cost, which is expected to raise up to £50million annually. Its city council has said it will be spent on infrastructure, housing and events.

Steve Rotheram, Mayor of the Liverpool City Region, welcomed the move after campaigning for the powers for years: “Our visitor economy is already worth more than £6.8billion a year and supports more than 55,000 jobs across the Liverpool City Region. A modest levy on overnight stays could potentially raise up to £18million a year – money that would stay here and be reinvested directly into the events, culture, experiences and infrastructure that bring millions of visitors to our region.”

Mayor of London Sadiq Khan also threw his weight behind the measure, stating that the capital requires the same flexibility as other major world cities to manage visitor pressures and strengthen its global appeal.

Tracy Brabin, Mayor of West Yorkshire, added: “By asking people to make a small contribution, like in many other European countries, we can continue to invest in culture, grow our economy and ensure people want to visit for generations to come.”

The legislation is expected to take time to pass through Parliament, with implementation not anticipated until 2028 at the earliest.

Once active, the generated funds will be retained locally and it is expected that they will support transport links, maintain public spaces and fund regional cultural projects.