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.'
