England's mayors to be given power to introduce tourist tax

Image source, Getty ImagesByJack Fenwick, Political correspondent, Ewan Somerville, Political reporter and Chris GrahamPublished10 September 2026, 03:19 BSTUpdated 57 minutes agoMayors in England are to be given the power to introduce an overnight visitor levy on tourists, under plans being announced by the government later.

Local leaders would be allowed to bring in an uncapped levy, dubbed a "tourist tax", as a percentage of the cost of hotels, bed and breakfasts and other types of accommodation rather than a flat fee.

Hospitality leaders have warned "jobs are now at risk" because of the proposals and that families holidaying in England would feel the pinch.

But ministers are said to believe mayors are unlikely to make it too expensive with budget holidays protected by the fact it is not a flat fee.

The idea was first raised under former Prime Minister Sir Keir Starmer in November and is similar to schemes running in Scotland and European destinations.

The government will announce more details after the Housing Secretary Angela Rayner meets mayors virtually at No 10 North on Thursday afternoon.

Under the proposals, local leaders would decide how the revenue raised should be reinvested.

A government source said "it will be up to local leaders and local voters" in England "to decide what is right for their area".

But it means a holiday in England could become more expensive if local leaders decide to implement the tax.

Leading trade body UKHospitality has hit back at the proposals, warning they are "not going to be painless".

Its chief executive Allen Simpson claimed it would add about £100 to £120 on average to the cost of a family holiday in England, amid fears mayors would make use of the fact there is, in theory, no upper limit for the levy.

"We know, don't we, that local government is struggling for funds - it was hit very hard by austerity," he told BBC Radio 4's Today programme.