England’s Labour regional mayors across 10 city regions have committed to limiting a proposed visitor accommodation tax to 5% of nightly lodging costs, should they choose to implement the charge. The mayors sent a letter to government leadership stating that this ceiling represents a reasonable balance between generating meaningful local investment while preventing excessive or inconsistent fees across regions.
The policy would grant local leaders new authority to levy fees on hotel stays, bed and breakfasts, and other temporary accommodations. The government previously indicated that budget-conscious lodging would face lower rates and that revenues could support local infrastructure and retail areas. Various local authorities will need to clarify by early 2028 how any collected revenue would be reinvested, and they may offer exemptions for certain accommodation types such as campsites, though they cannot exempt specific localities within their regions.
Opposition to the measure has emerged from multiple quarters. The hospitality industry warned that the tax poses risks to employment, with trade representatives estimating it could add £100 to £120 to typical family holiday costs. Conservative politicians criticized the proposal as compounding existing value-added tax burdens, while Reform UK’s regional mayors indicated they would not implement such a levy. However, some local areas already operate voluntary visitor schemes, including Manchester’s £1 per room nightly charge and Liverpool’s £2 fee.
Similar levies exist internationally in cities including Amsterdam, Rome, and New York. Scotland implemented a capped 5% hotel visitor levy in Edinburgh with mixed results, while Wales plans to introduce a £1.30 per person nightly fee starting in April. The government indicated it would present legislation to Parliament to formally establish the accommodation tax, which would apply to both domestic and international visitors.
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