Title

BUDGET 2025

Budget: Mayors to get tourist tax powers

England’s regional mayors will soon have the power to introduce a levy on overnight stays in hotels, B&Bs, guesthouses and holiday lets, chancellor Rachel Reeves has confirmed.

© Balate Dorin/Shutterstock

© Balate Dorin/Shutterstock

England's regional mayors will soon have the power to introduce a levy on overnight stays in hotels, B&Bs, guesthouses and holiday lets, chancellor Rachel Reeves has confirmed.

Under the plans, areas with directly elected mayors could choose to add an overnight-stay charge. 

Fees would be managed locally and spent on improving public transport, culture, events and upgrading visitor services.

The Budget documents read: ‘The Government has announced a historic commitment to fiscal devolution, giving mayors and potentially other local leaders, subject to consultation, the option to introduce a visitor levy on overnight visitor accommodation in their area. This will fund further investment in growth locally, including the visitor economy.'

Announcing the policy yesterday, officials said it would bring English cities into line with global tourist hubs like Paris, Milan and New York.

Chief executive of think-tank Localis, Jonathan Werran, said: ‘News that we can finally move towards a tourism tax can only be seen as helpful for champions of fiscal devolution, who have felt they have been banging their heads in vain against the brick walls of Horseguards Avenue.'

 

BUDGET 2025

Fair Funding: Have rural councils in England really lost out?

By Gabriel Stewart | 26 May 2026

When it comes to spending power, urban councils will soar ahead of rural councils by 2028-29, according to LGA figures. But exclusive Institute for Fiscal St...

BUDGET 2025

Stay the course on a Total Place race

By Anna Randle | 26 May 2026

It’s time to seize the opportunity of Total Place 2.0 to help bring about the public services we want and need today, says Anna Randle.

BUDGET 2025

The King's Speech fell short of delivering for local government

By Ian Miller | 22 May 2026

'Legislation to introduce a duty of candour for public servants and to remove peerages from disgraced members of the House of Lords has not been matched with...

BUDGET 2025

English devolution: Redefining mayoral scrutiny

By Natalie Rotherham | 20 May 2026

Natalie Rotherham says scrutiny is becoming a core pillar of England’s evolving devolved governance system, with mayoral accountability now expected to match...

Popular articles by William Eichler