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

The local government reorganisation reset changes the recruitment brief

By Liam Young | 09 September 2026

Liam Young examines how councils can reset recruitment, retain talent and rebuild confidence after local government reorganisation uncertainty.

BUDGET 2025

If Whitehall trusts councils, who do councils trust?

By Manjeet Gill | 09 September 2026

New York’s city government has more power than any English mayor. But its real advantage may be how it’s directly putting citizens to work shaping their own ...

BUDGET 2025

Concerns over reorganisation delay impact on devolution

By Joe Lepper | 08 September 2026

MPs have raised concerns around the impact that a delay to local government reorganisation (LGR) announced this week will have on the Government’s devolution...

BUDGET 2025

Healey: Fiscal devolution needed for successful cities

By Joe Lepper | 08 September 2026

Fiscal devolution is needed to ‘transfer power and resources from Whitehall to our regions’, chancellor John Healey has insisted.

Popular articles by William Eichler