Mayors and local leaders in England are to be given the power to introduce an Overnight Visitor Levy, a fee on overnight stays, to help fund local investment. The government states this measure could lead to more money being invested into high streets, public transport, and events aimed at boosting tourism and driving economic growth.
The levy will be charged as a percentage of the cost of accommodation, rather than a flat fee, which the government says will protect budget holidays and shield families from disproportionate costs for cheaper stays. This approach aims to bring England in line with other countries that have similar levies, including Germany, the United States, Italy, the Netherlands, and Canada.
Leaders of Foundation Strategic Authorities will have the discretion to decide whether to implement a levy and how the revenue should be invested in their areas, in consultation with residents and local businesses. Secretary of State for Housing, Communities and Local Government Angela Rayner stated that the measure gives mayors the choice to raise and reinvest funding where it is most needed.
The announcement precedes today's Mayoral Council at No10 North, where discussions will focus on how these new powers can make more money available for local priorities. Mayors including Steve Rotheram of the Liverpool City Region, Claire Ward of the East Midlands, Sadiq Khan of London, Tracy Brabin of West Yorkshire, and Helen Godwin of the West of England have expressed support for the initiative, highlighting its potential to boost local economies and improve visitor experiences.