English Mayors to Get Power to Set Tourist Tax

English mayors are poised to gain the authority to introduce a percentage-based levy on overnight accommodation, a move intended to generate revenue for local services and tourism infrastructure. The government plans, expected to be outlined this week, would empower mayors and combined authorities to set rates for a tourist tax, with local leaders deciding how the collected funds are reinvested. While the government asserts that this approach, which charges a percentage of accommodation costs rather than a flat fee, will help protect budget holidays, a key point of contention is the absence of a legal upper limit on the levy. Government sources have indicated that mayors are unlikely to set rates high enough to deter tourism, suggesting they would likely implement modest percentages. However, the lack of a formal cap has raised concerns among industry representatives. UK Hospitality, a trade body representing the hospitality sector, has warned that the proposed tax could lead to increased holiday costs for consumers and potentially threaten jobs within the industry.