Mayors given powers to impose tourist tax on overnight stays
The government has announced plans to give English mayors the power to introduce an overnight visitor levy, with Labour mayors saying they will cap it at 5%.
The Full Story
A plain summary built from the channels that reported this story.
The government has announced that mayors in England will be given the power to introduce an overnight visitor levy, commonly known as a tourist tax. The charge would be a percentage of the cost of accommodation rather than a flat fee, and there is no statutory upper limit. However, Labour mayors have indicated they will cap the levy at 5%. This move is part of the wider devolution agenda championed by the Prime Minister, Andy Burnham.
Similar schemes already exist. Greater Manchester has a £1 per room per night charge that has raised over £10 million since 2022. Edinburgh introduced a 5% tourist tax in July, projected to raise up to £50 million a year. Wales will adopt a flat rate of £1.30 per person per night from next April.
The announcement has drawn fierce opposition from the hospitality sector. UK Hospitality's chief executive, Alan Simpson, warned the tax could lead to 33,000 job losses and add around £100 to the cost of an average family holiday. He described it as a double blow on top of recent national insurance and wage increases.
Conservative leader Kemi Badenoch rejected the idea, saying people are already overtaxed and that taxing businesses reduces jobs. She urged Conservative mayors not to implement the levy. Some local leaders, including a Reform mayor in Lincolnshire and a Conservative mayor in Hull, have said they will not adopt the tax.
Supporters argue the levy will allow local areas to invest in transport, infrastructure, and culture. The government says the percentage-based charge will protect budget holidays, as cheaper accommodation attracts a lower tax. It also notes that similar levies exist across Europe, including in Amsterdam, Paris, and Barcelona.
The exact details will be finalised after consultation with mayors and local leaders. The power is expected to be available to all regions by 2029.
On screen
Stills are sampled automatically at 60-second intervals. Where shown, the still is the nearest available frame from the relevant broadcast segment and is included to show what was on screen during that part of the broadcast. A still may not correspond to the exact second of a quoted phrase.
Key Claims
Claims reported during this story's coverage, mapped by channel. Ordered by how many channels carried each claim.
| Claim | Channel 5 | BBC News | BBC One | BBC Two | Channel 4 | GB News | ITV | Sky News |
|---|---|---|---|---|---|---|---|---|
| Edinburgh already has a 5% tourist tax on room cost. | · | · | ||||||
| The tax is a percentage of accommodation cost. | · | · | ||||||
| Mayors will be able to impose uncapped tourist taxes, unlike in Wales. | · | · | · | |||||
| Liverpool and Manchester pioneered a £1 per room per night visitor charge. | · | · | · | · | · | |||
| The tax could put jobs at risk. | · | · | · | · | · | · | ||
| UK Hospitality predicts at least 33,000 job losses from the tourist tax. | · | · | · | · | · | · | ||
| Wales will introduce a nightly tourist levy, with rates reported as £1.30 per night or £1.56 including VAT. | · | · | · | · | · | · | ||
| A caravan park owner said the tax would harm the industry. | · | · | · | · | · | · | · | |
| Asylum hotels are exempt from the tourist tax. | · | · | · | · | · | · | · | |
| Cornwall could raise £20 million from a tourist tax. | · | · | · | · | · | · | · | |
| Cornwall does not have a local mayor. | · | · | · | · | · | · | · | |
| Edinburgh spent the first tranche of its tourist tax on social housing. | · | · | · | · | · | · | · |
Channel Perspectives
What each channel focused on, with key quotes.
GB News framed the policy as a 'tax assault' on hospitality, with panelists arguing that devolution is being used to raise taxes rather than liberalise the economy. They highlighted the lack of a cap and claimed asylum hotels would be exempt, which they presented as unfair to British families.
- “the Telegraph splash is that mayors will be able to impose unlimited taxes on tourists”
- “Manchester pioneered the city visitor charge workarounds. It was a mandatory fee tacked onto the bill by the participating city centre hotels, and this was £1 per room per night plus VAT.”
- “migrant hotels are going to be exempt from paying this this tourist tax”
Sky News provided balanced coverage, explaining the mechanics of the levy (percentage, uncapped) and including reactions from Conservative leader Kemi Badenoch and UK Hospitality. They also gave context on existing schemes in Manchester and Edinburgh.
- “The fee would come as a percentage of the cost of accommodation instead of a flat amount. And, in theory, there's no upper limit to what could be charged.”
- “We are overtaxed, and right now, we're not even getting the number of tourists that we used to get.”
- “It is in frank terms a disaster.”
Channel 4 focused on the official name 'overnight visitor levy' and the political framing, reporting Angela Rayner's defence and noting that some Labour mayors have voluntarily capped the rate at 5%. They also highlighted the hostile reaction from hospitality.
- “The overnight visitor levy is about bringing investment and growth into local areas, giving mayors the power so that they can put this levy on, but it's on a percentage rate, so those that are the bigger establishments will pay more, so it protects family holidays and budget holidays”
- “Officially, this is not called a tourist tax. After all, attaching the word tax to anything, whether it be pasties or spare bedrooms, not exactly a successful strategy.”
BBC TWO's Politics Live hosted a panel discussion, focusing on the regressive nature of the tax and its impact on ordinary families. A holiday park owner described it as a 'poll tax' and provided the Welsh example as a warning.
- “I'm worried about the tourist tax. I'm listening with an open mind to be persuaded on it. But as things stand, I'm very, very concerned about the impact on my guests.”
- “It is a very regressive form of poll tax.”
ITV1 stressed the potential job losses and the strain on hospitality, with reports from Weston-super-Mare and a business editor's analysis. They highlighted that the tax is uncapped and gave a platform to both opponents and cautious supporters.
- “This is a tax that hospitality businesses simply cannot afford. It comes off the back of two budgets which between them have cost somewhere around 100,000 jobs and added £7 billion in costs onto the sector.”
- “Our costs have increased massively with the utility, with utilities, food costs, wage costs and other tax. We really don't want it at this stage but be transparent with what you're going to spend it on.”
- “I would be very wary of some of the predictions of tens of thousands of job losses. That is not a given.”
5 News reported from Cambridge, a major tourist destination, focusing on the potential impact on visitors and local businesses. They also summarised existing schemes in Manchester and Edinburgh, giving the story a local, practical angle.
- “This is not devolution. It is anything but.”
- “A large number of customers come on day trips to Cambridge. They won't be affected at all. And the customers that do come and stay for several days, they're often staying in quite expensive luxury hotels which cost quite a lot of money and I can't see them being massively affected by the price of maybe a cup or two of coffee.”
BBC ONE West gave the story substantial coverage, using a report from Manchester to show how the existing voluntary charge works. They highlighted the government's argument that the percentage-based system protects budget holidays, but also included a holiday park owner's warning about costs.
- “They already boost local economies with their visits. But more and more cities around the world are starting to bring in additional charges for tourists to help pay for local services.”
- “The government argues the percentage style of charge will help protect Budget holidays and whilst there won't be an upper limit it will be applied sensibly so as not to price people out of the holiday market.”
BBC NEWS's The Context featured a debate between two residents from tourist areas, one who runs caravan parks in Skegness and one from Cornwall. The discussion highlighted the contrast between the potential benefits for local services and the risk to businesses, with a strong focus on the impact on working-class families.
- “I think the tourist tax is a good idea because as a local resident um we see our council and i'm sure this is true of councils across the country they can't even afford to keep public toilets open”
- “tax is going to kill a large part of the industry that keeps this town going”
Broadcast Timeline
News broadcasts tracked for this story, in time order.