Deputy prime minister Angela Rayner is said to have backed the proposal for councils to introduce visitor levies.
Rayner reportedly said that local authorities should be granted permission to tax visitors for hotel stays, according to The Telegraph.
However, Chancellor Rachel Reeves has purportedly rejected the proposals due to concerns about the impact on businesses and the hospitality industry.
The call to implement a tourist tax in the UK has previously been requested by mayors such as Andy Burnham and Sir Sadiq Khan, as part of a coalition led by Liverpool city region mayor, Steve Rotheram.
More recently, the leaders of Bath & North East Somerset Council and Cambridge City Council appealed to Rayner for the introduction of a levy on overnight trips to support local services and infrastructure.
A Ministry of Housing, Communities & Local Government spokesperson said: ‘There are currently no plans to introduce a tourism tax in England. Places can already choose to introduce a levy on overnight stays through the Accommodation Business Improvement District model.
‘We are also already empowering local leaders by removing restrictions and allowing the existing Mayoral Council Tax Precept to be spent on areas that drive local growth, such as transport and adult skills.’
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