Levy on overnight trips will help mayors invest in local growth
Source: gov.uk (2025-11-25)

England’s mayors will be able to invest in transport, infrastructure, and the visitor economy through a new levy on overnight stays.

Mayors to get new power to invest in their areas and drive growth through a charge on overnight stays.

This will put local leaders on equal footing with top tourist destinations around the world.

It’s the latest step forward in putting power in the hands of those who know their communities best.

England’s mayors will be able to invest in transport, infrastructure, and the visitor economy through a new levy on overnight stays.

The fee would apply to visitors’ overnight trips, and it would be up to mayors and other local leaders to introduce a modest charge if it’s right for their area.

The move would ensure UK mayors have the same powers as their counterparts in cities like New York, Paris and Milan, where charges on short-term trips are already commonplace.

The announcement comes ahead of tomorrow’s Budget, which will make the fair and necessary choices to deliver on the government’s mandate for change.

This includes cutting hospital waiting lists by delivering record investment in our public services, cutting debt and borrowing by sticking to our tough spending plans, cutting the cost of living by raising the national living wage for millions of workers, and pushing ahead with the biggest drive for growth in a generation.

Secretary of State for Housing, Communities and Local Government Steve Reed said:

Tourists travel from near and far to visit England’s brilliant cities and regions.

We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.

England attracts over 130 million overnight visits each year.

Under plans set out today, any new levy would apply to visitors at accommodation providers including hotels, holiday lets, bed and breakfasts, and guesthouses.

Money raised could then help fund local projects that improve communities and enhance tourists’ experiences, that could potentially help attract more visitors – without needing approval from central government. Research also shows that reasonable fees have minimal impact on visitor numbers.

In London, the levy could go towards improvements to some of the capital’s busiest and famous streets to improve the experience for both visitors and Londoners, as well as supporting the city’s entertainment, sport and culture including helping smaller venues. Meanwhile in Liverpool, it could help the city to support the major events that drive visitors - such as the upcoming UEFA EURO 2028 - and improving the infrastructure that visitors and locals rely on.

Many cities around the world charge tourists a small fee when they visit, including New York, Paris and Milan.

The announcement is the latest step forward in the government’s mission to devolve power and give those who know their areas best control over how money is spent in their communities.

Businesses, communities and others with an interest in the measure can have their say on how it should work, with a consultation running for 12 weeks.

Further information

The consultation is available on GOV.UK and will close on 18 February.

Under the proposals, emergency accommodation, homeless shelters and registered Gypsy and Traveller sites used as primary residences would be exempt. Mayors would also have the power to apply other local exemptions where appropriate, so they can tailor the levy to their local economy.

Additional quotes

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. It also shows what can be done when ministers work closely with Mayors to devolve more powers to cities and regions.

As part of developing our plans for the levy we will work closely with the hospitality and tourism sectors to ensure it delivers the maximum benefits for London and our brilliant businesses.

Mayor of Liverpool City Region Steve Rotheram said:

For too long, cities like ours have been expected to compete on a global stage without the basic tools that other places take for granted. Cities like Barcelona and Paris raise tens of millions each year through similar schemes – money that goes straight back into improving the visitor experience and supporting the local people who keep those destinations thriving.

I’m pleased that the government has listened and acted – giving areas like ours the powers we need to support and grow our economies in a sustainable way. Our visitor economy is worth more than £6billion 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: our world-class culture, iconic events, vibrant public spaces and the infrastructure that ties it all together.

Mayor of the West of England Helen Godwin said:

Residents and visitors alike know how special our part of the world is, from our people to our culture to our nature. Tourism is now worth a record £2.7 billion to the West’s economy, which is a key industry for our new Growth Strategy over the coming decade.

These new powers are a real vote of confidence in our region taking more control of our future. Proceeds from an overnight visitor levy, that people from across the West are used to paying on holiday ourselves, have the potential to support and enhance the sector’s businesses and workers – including with better transport options.

North East Mayor Kim McGuinness said:

Even a small amount levied on each overnight stay will transform the welcome we can give to people coming to North East England from all over the globe.

This signals the start of a new era of events and festivals we will stage to bring a new focus to our unique world heritage sites at Hadrian’s Wall and Durham Cathedral, our stunning coastlines and the iconic Tyne bridges and gorge.

This supports our ambition to double the size of the visitor economy creating thousands of new jobs in the next decade.

Mayor of York and North Yorkshire David Skaith said:

A visitor levy in York and North Yorkshire will be a total gamechanger for our region. We’re home to beautiful towns, villages and cities and receive 41m visitors a year as a result.

A small charge on overnight stays could revolutionise how we deliver transport, support businesses, invest in infrastructure and the visitor economy. Building the healthy and thriving communities for our residents and everyone that comes to visit them.

West Yorkshire Mayor Tracy Brabin said:

I’m delighted the government has heard the strong case Mayors have made for the power to ask visitors to pay a small fee to help drive growth.

This will allow us to invest more into making our regions even better places to visit, unlocking opportunities and help our businesses thrive.

This is a further vote of confidence in devolution and shows the government is backing mayors to achieve our ambitions.

Mayor of Greater Manchester Andy Burnham said:

It’s great news that the Government is committing to giving regional mayors the powers to introduce a visitor levy – a measure we have long called for. Greater Manchester already has a thriving visitor economy, and a visitor levy will help us sustain good growth over the next decade.

I’m proud that nearly two million people from all over the world choose to visit Greater Manchester every year. The money they spend contributes about £9 billion annually to our economy, supporting over 100,000 jobs. The levy will allow us to invest in the infrastructure these visitors need, like keeping our streets clean and enhancing our public transport system through later running buses and trams, making sure every experience is a positive and memorable one.