Holidaymakers staying in various locations across the United Kingdom may soon be subject to daily charges. Mayors in England are set to receive new authority to implement a visitor levy on overnight guests to generate funds for their local communities. Nonetheless, some within the tourism industry have criticized the initiative, fearing it may discourage people from selecting UK holidays.
The Ministry of Housing, Communities and Local Government has revealed the proposal, stating that it will empower mayors to invest in transportation, infrastructure, and the visitor economy by introducing a new levy on overnight accommodations. Minister Steve Reed highlighted the significance of this move in leveraging tourism to support local priorities and drive growth in English cities and regions.
With over 130 million overnight visits annually, the new levies are intended to apply to stays in hotels, holiday rentals, bed and breakfasts, and guesthouses. Certain accommodations like emergency housing, homeless shelters, and registered Gypsy and Traveller sites used as primary residences will be exempted. Moreover, mayors and local leaders will have the discretion to exempt other types of lodging if desired. The government emphasized that granting UK mayors similar powers to those in global cities like New York, Paris, and Milan, where short-term trip charges are common practice.
The revenue generated from this initiative is expected to fund local projects enhancing communities and enriching tourists’ experiences, potentially attracting more visitors without central government approval. Despite these benefits, concerns have been raised by tourism industry leaders, such as Ben Spier from Sykes Holiday Cottages, who warned of the added financial burden on households and potential negative impacts on the UK hospitality sector.
Mayors across the UK have welcomed the news, expressing optimism about the additional resources benefiting their economies. The Mayor of London, Sadiq Khan, highlighted the direct support to London’s economy, while the Mayor of the West of England, Helen Godwin, emphasized the positive impact on regional development and the tourism sector.
A 12-week consultation period has been initiated to gather feedback from businesses, communities, and stakeholders on the implementation of these measures, with the consultation available on GOV.UK until February 18, 2026.