10 Nov 2026
The Visitor Levy Bill, introduced in Parliament on 4 November, would give mayors and strategic authority leaders the option to introduce a charge on overnight accommodation.
Money raised would remain within the local area and could support transport, public toilets, parks, high streets, cultural events and attractions. Introducing a levy would be a local choice: the Bill does not itself introduce a charge on visitors.
How Would It Work?
Under the proposals, the levy would be calculated as a percentage of accommodation costs and apply to the first 28 consecutive days of a stay.
Ten mayors have committed to a rate no higher than 5%. This is a commitment by those mayors, rather than a national statutory cap described in the announcement.
Before introducing a scheme, authorities would have to publish a draft plan and impact assessment, consult residents and businesses, and explain how the money would be spent. Annual reports would set out what had been raised and how it had been used.
Accommodation providers would be responsible for accounting for and paying the levy. The proposals also include protections for occasional hosts and scope for limited local exemptions, including camping pitches.
What About Areas Without A Mayor?
The proposals are not limited to mayoral areas. The announcement specifically includes Foundation Strategic Authorities, where a levy could only proceed with unanimous support.
However, it does not set out a route for councils outside strategic authority arrangements to introduce a levy. The announcement therefore should not be read as giving every district or county council its own powers to charge overnight visitors.
For rural destinations, this raises a question about whether communities facing similar tourism pressures will have access to the same funding opportunities.
The Opportunity For Rural Communities
For rural destinations, the proposals could provide additional investment in services used by residents and visitors alike, from public toilets and parks to local transport.
York and North Yorkshire Mayor David Skaith has welcomed the plans and said he intends to introduce a levy in the county.
How the proceeds are shared across each strategic authority area would be an important part of developing local schemes, particularly where they cover a mix of cities, towns and rural communities.
Consultation would also give accommodation businesses the opportunity to discuss how a levy might affect them, including the administration involved, seasonal trading and potential changes in bookings.
The detail of individual schemes would help show how the proposals could support rural tourism and bring benefits to the communities welcoming visitors.
