Mayors and local leaders across the UK are set to receive new powers to introduce an overnight visitor levy, according to a UK Government statement published on 10 September. This measure, officially known as the overnight visitor levy, aims to provide extra funds for regions and cities.
Angela Rayner, Secretary of State for Housing, Communities and Local Government, stated that this measure will give mayors the choice to raise and reinvest funding where it is most needed. She added that it would support local services, public spaces, and attractions.
The levy will be charged as a percentage of the accommodation cost, rather than a flat fee, to protect budget staycations. UK citizens will not be exempt from paying the fee when staying in other UK regions or cities.
Steve Rotheram, Mayor of the Liverpool City Region, welcomed the plans, suggesting a modest levy could raise up to £18 million annually for his region. London Mayor Sadiq Khan also expressed strong support for the government giving London the power to introduce such a levy, stating it could provide an important additional source of funding for the capital's visitor economy.