The tourism tax in England will be charged as a percentage of the cost of accommodation rather than as a flat fee, the Government has announced.
It comes after a consultation on the overnight visitor levy.
Chief executive of the Centre for Cities think-tank Andrew Carter said the levy was a ‘great step forward for fiscal devolution', marking the first time that mayors in England have gained more autonomy over funding.
East Midlands mayor Claire Ward said: ‘Having seen this work in other places around the world, I am confident that we can make it work here.'
West of England mayor Helen Godwin added: ‘We are used to paying a visitor levy ourselves when we go on holiday to other countries, and now is the time to look at making sure we can invest more in what matters through a small charge on overnight stays here – with common-sense exemptions where we need them.
‘We should grab the chance to take more control of our future with both hands because a few quid here and there can add up to some big change.'
