William Eichler 26 November 2025

Budget: Mayors to get tourist tax power boost

Budget: Mayors to get tourist tax power boost image
© YIUCHEUNG / Shutterstock.com.

England’s regional mayors will soon have the power to introduce a levy on overnight stays in hotels, B&Bs, guesthouses and holiday lets, Chancellor Rachel Reeves has confirmed.

Under the plans, areas with directly elected mayors could choose to add an overnight-stay charge. Fees would be managed locally and spent on improving public transport, funding culture and events, and upgrading visitor services.

‘The Government has announced a historic commitment to fiscal devolution, giving mayors and potentially other local leaders, subject to consultation, the option to introduce a visitor levy on overnight visitor accommodation in their area,’ reads the Budget 2025 document.

‘This will fund further investment in growth locally, including the visitor economy. The Government is consulting on the design of the levy.’

Announcing the policy yesterday, officials said it brings English cities into line with global tourist hubs like Paris, Milan and New York — many of which already harness overnight levies to fund growth.

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.’

Cllr Claire Holland, chair of London Councils, said: ‘We welcome the news that London will be able to introduce an overnight accommodation levy – this has been a long-standing ask from boroughs.’

Mayor of the Liverpool City Region, Steve Rotheram, said the levy could raise up to £17m annually, adding: ‘It’s only fair that those who enjoy everything our region has to offer play a small part in helping to sustain it.’

Commenting on the announcement, Localis chief executive, Jonathan Werran, said: ‘News that we can finally move towards a tourism tax can only be seen as helpful for champions of fiscal devolution, who have felt they have been banging their heads in vain against the brick walls of Horseguards Avenue.’

Cautioning that a tourism tax is ‘not going to touch the sides of the social care funding gap’, he added that it was important for establishing the principle that locally raised tourism revenue should be spent locally.

SIGN UP
For your free daily news bulletin
Highways jobs

Assistant Director for Estate Strategy and Development  

Derbyshire County Council
£71,202 - £77,495 per annum
We are seeking an ambitious and strategic leader to join our senior management team as Assistant Director for Estate Strategy & Development. Matlock, Derbyshire
Recuriter: Derbyshire County Council

ESCA Development Assistant

Essex County Council
£25959.0000 - £27613.0000 per annum
ESCA Development AssistantFixed Term, Full Time£25,959 to £27,613 per annumLocation
Recuriter: Essex County Council

Closed Landfill Site Operative

Essex County Council
£25959.00 - £28621.00 per annum
Closed Landfill Site OperativeFixed Term, Full Time£25,959 up to £28,621 per annum Location
Recuriter: Essex County Council

Apprentice Admin Assistant

Durham County Council
£8 per hour
Apprentice Admin Assistant Apprentice £8 per hour. Temporary contract for approx. 18 months Full Time, Term Time Only, Required to start September 202 Durham
Recuriter: Durham County Council

Rights of Way Officer

Durham County Council
£30,024 - £33,699
An exciting and challenging opportunity has arisen within the Council’s Access and Rights of Way Team for the position of Rights of Way Officer.    WH Durham
Recuriter: Durham County Council
Linkedin Banner