UK Empowers English Mayors to Impose Tourist Tax

The UK government is set to empower mayors across England with the authority to introduce a tourist tax on overnight stays, aiming to generate funds for local infrastructure and tourism projects. The measure, embedded in the English Devolution and Community Empowerment Bill currently progressing through Parliament, is expected to receive formal confirmation in the upcoming Budget, aligning English cities with similar levies in Scotland, Wales and numerous international destinations.

Under the proposed powers, regional mayors could impose a modest charge on accommodations such as hotels, bed and breakfasts, guest houses and holiday lets, including short-term rentals like Airbnbs. The levy would apply equally to domestic and international visitors, with estimates suggesting a rate around £2 per night per person or approximately 5 percent of the room cost. For a family of four on a seven-night stay, this could add about £56 to their bill. Officials from the Ministry of Housing, Communities and Local Government indicated that the tax would enable mayors to reinvest revenue into community priorities, such as improving public spaces, signage and transport links that support tourism.