Tourist Taxes in England Soon: Mayors Get Power to Decide

UK Chancellor Rachel Reeves has confirmed that England’s regional mayors will soon gain the authority to introduce an overnight visitor levy—a local tax applied to hotel stays, bed and breakfasts, guesthouses, and vacation rentals.

This policy aligns England with other destinations that already use tourist taxes, including Milan, Paris, Venice, and New York.

Under the proposal, each mayor can decide whether to introduce the levy and at what rate, giving regions flexibility to tailor the policy to their needs.

Revenue from the levy could be used to support local development, including improved public transport, large-scale events, cultural programs, and visitor services.

Local leaders have already expressed support. Liverpool City Region Mayor Steve Rotheram said the levy could generate around £17 million ($22.4 million) per year for regional priorities without relying on national government funding. London Mayor Sadiq Khan also welcomed the move, noting that many major global cities use visitor taxes to support infrastructure and tourism services.

A 12-week consultation has now opened and will run until February 18, 2026. Final decisions on how the levy will be implemented will follow later.

For further insight, read our article on tourist taxes, which explains how they work, the problems they aim to address, and examples from countries with already established systems.

Photo by David Monaghan on Unsplash