15 Sep 2026
Mayors and other strategic authority leaders in England are to be given powers to introduce a levy on overnight stays, with the revenue available for investment in local priorities such as public transport, high streets, events and visitor infrastructure.
Under the proposals, the levy would be calculated as a percentage of the accommodation cost rather than as a flat fee. The government says this should prevent visitors using lower-cost accommodation from paying a disproportionate amount.
Local leaders would decide whether to introduce the levy following consultation with residents and businesses. They would also have flexibility to offer exemptions, including potentially for campsites, while temporary accommodation, shelters and refuges would be excluded.
Accommodation providers would be responsible for paying the levy to the relevant strategic authority. Legislation will be introduced in due course, with spending plans expected from participating areas by early 2028.
The measure could offer tourism-dependent rural and coastal areas a new way to reinvest visitor income in the services and infrastructure used by residents and visitors alike. However, questions remain about whether the opportunity will be available consistently across England, particularly in areas not currently covered by an eligible strategic authority, and how the system will reflect the needs of small rural tourism and accommodation businesses.
