Tourist tax confirmed for Mayors
England’s devolved regions are set to gain new powers to introduce an overnight visitor levy, enabling investment in local transport, infrastructure and the visitor economy.
The measure will allow regional leaders to apply a modest charge on hotel, B&B, and short-let stays, bringing England in line with international cities such as New York, Paris and Milan.
The move is designed to strengthen devolved powers and provide mayors with an additional, locally controlled revenue stream.
England currently receives more than 130 million overnight visits each year, and officials argue that reasonable fees have minimal impact on visitor numbers.
For the construction and development sectors, the levy could create new funding pipelines for regeneration and placemaking projects.
Housing, Communities and Local Government secretary Steve Reed said the change will help local leaders “drive growth and invest in these communities for years to come.”
A 12-week consultation has opened for businesses and stakeholders to comment on how the levy should operate.
The government frames the proposal as part of a wider agenda to stimulate economic growth, reduce public service backlogs and devolve decision-making to local areas.
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.”
