A tourist tax is coming to English cities. Here is what mayors could charge you
What happened
The government announced on 10 September 2026 that mayors in England will be given powers to introduce a visitor levy, more commonly called a tourist tax. The measure is part of the government's English Devolution and Community Empowerment agenda, which aims to move some tax-raising powers out of Westminster and towards city regions. The idea is that mayors could use the money for local priorities such as transport, culture and public services. Under the plans, a mayor would be able to charge a percentage of the total cost of a visitor's overnight stay. The proposed scope is broad. It would cover hotels, guesthouses, bed and breakfasts, hostels, campsites, self-catering properties and short-term lets. University and religious accommodation would be included when let out commercially. The legislation has been flagged but not yet delivered. The 2026 King's Speech announced that an Overnight Visitor Levy Bill would be introduced during the 2026 to 2027 parliamentary session. As things stand, that Bill has not yet been introduced. So nothing changes for anyone booking a break this autumn. But several English cities have already made clear they are interested, and this is likely to affect what UK holidays cost within the next few years.
Why this matters
If you have holidayed in Europe recently, you have almost certainly paid something like this already. Tourist taxes are routine in Italy, Spain, France, Portugal, Greece, the Netherlands and many other countries, usually charged per person per night and collected by the hotel at check-in. Britain has been unusual in not having one. That is beginning to change. Scotland passed legislation allowing local visitor levies, and Edinburgh has been the most prominent example. Wales has been moving in a similar direction. England has lagged behind, partly because councils lacked the legal power. The argument in favour is about who pays for tourism. Popular destinations carry real costs: street cleaning, public toilets, policing, transport, maintaining the parks and promenades that visitors come for. Those costs currently fall on council tax paid by residents. A visitor levy shifts some of it to the people using the services. The argument against is about competitiveness and the size of the industry. Hospitality employs a very large number of people in the UK, often in coastal and rural areas where there are few other employers. Adding cost to an already expensive product, in a sector still recovering from several difficult years, is not risk-free. For most travellers the practical question is simpler: how much, and on what.
What the evidence actually says
The industry has produced the most specific numbers so far, and they deserve to be read with the usual care you would give any figures produced by an interested party. UKHospitality, the trade body, has estimated that a 5 per cent levy would result in 11.9 million fewer visitor nights and £1.8 billion less tourism spending in 2030, and a loss of nearly 33,000 jobs. Those are large numbers, and they are a forecast rather than a measurement. They rest on assumptions about how sensitive travellers are to price. International evidence on that is genuinely mixed. Studies of European tourist taxes have generally found modest effects on visitor numbers, partly because the amounts are usually small relative to the total cost of a trip, and partly because people choose destinations for many reasons other than a few pounds a night. On the other hand, a percentage-based levy behaves differently from the flat per-night charges common in Europe. A percentage scales with the room rate, so it costs more in expensive cities and during peak periods. Whether that is fairer or more damaging depends on your point of view. What cannot be assessed yet is the detail, because the detail does not exist. The rate has not been set. Whether there will be exemptions, for example for children, for people staying for medical treatment, or for business travel, is not known. Nor is it clear which mayoral areas would actually use the power. So the honest summary is: the direction of travel is clear, the numbers are not, and anyone quoting a specific cost to you today is guessing.
Practical advice
Nothing to do urgently, but a few things worth knowing. Nothing changes yet. There is no visitor levy in English cities today, and there will not be one until the Bill passes and an individual mayor chooses to introduce it. Ignore anyone telling you to book now to beat a tax that does not exist. When it does arrive, expect it at check-in rather than at booking. That is how most European tourist taxes work, and it is a common source of surprise for British travellers abroad. Budget for it as an extra rather than assuming it is in the headline price. Check the rules where you are going abroad too. Tourist taxes vary enormously across Europe, from under a euro a night in small towns to several euros a night in major cities, and some places charge more in peak season. Many exempt children under a certain age. If you are travelling for medical treatment, keep an eye on the detail as it emerges. Some countries exempt people staying near a hospital for treatment or to accompany a patient. Whether England does the same has not been decided, and it is a reasonable thing to ask your MP about if it would affect you. And if you are a small accommodation business, this is the moment to respond to consultations rather than after the rate is set. Campsites, B&Bs and self-catering properties are all in scope as proposed, and the administrative burden of collecting a levy falls differently on a twelve-room guesthouse than on a chain hotel.
What to know
On 10 September 2026 the government announced that mayors in England will be given powers to introduce a visitor levy, or tourist tax, as part of its devolution agenda. The levy would be a percentage of the total cost of an overnight stay, covering hotels, guesthouses, B&Bs, hostels, campsites, self-catering and short-term lets. An Overnight Visitor Levy Bill was announced in the 2026 King's Speech for the 2026 to 2027 session, but has not yet been introduced. UKHospitality has warned that a 5 per cent levy could mean 11.9 million fewer visitor nights, £1.8 billion less spending in 2030 and nearly 33,000 fewer jobs. These are industry forecasts, not measured outcomes. No rate has been set and no English city is charging one yet. Nothing changes for trips booked now. Sources: House of Commons Library, 'A visitor levy for English mayors?', September 2026, https://commonslibrary.parliament.uk/a-visitor-levy-for-english-mayors/. Euronews Travel, 'Tourist tax in England: Which destinations could introduce a new overnight levy?', 11 September 2026, https://www.euronews.com/travel/2026/09/11/tourist-tax-in-england-which-destinations-could-introduce-a-new-overnight-levy. The Traveler, 'UK overnight visitor levy plans spark tourism industry concern', September 2026, https://www.thetraveler.org/uk-overnight-visitor-levy-plans-spark-tourism-industry-concern/. This article is for general information and does not replace advice from a doctor, pharmacist or other qualified healthcare professional. If you are travelling for medical treatment, speak to your care team and check your travel insurance covers your condition.
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