England’s mayors will be able to invest in transport, infrastructure, and the visitor economy through a new levy on overnight stays, the government has announced.
The fee will 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 will 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 Wednesday’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.
“Tourists travel from near and far to visit England’s brilliant cities and regions,” said Secretary of State for Housing, Communities and Local Government Steve Reed.
“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 the proposals, 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, which could potentially help attract more visitors, without needing approval from the 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 improve 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.
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