The Government has introduced legislation that would allow mayors and other strategic authorities across England to charge visitors staying overnight in hotels, guesthouses and other short-term accommodation, with revenue retained locally for infrastructure, tourism and public spaces. The Visitor Levy (England) Bill received its first reading in the House of Commons on 4 November 2026. No nationwide tourist tax is currently in force.
How would the visitor levy work?
Eligible strategic authorities could choose to impose a percentage-based charge on qualifying overnight accommodation, rather than a fixed fee per night. Ten mayors have pledged to keep any levy they introduce at 5% or less, but that pledge is not a universal statutory cap. For example, a 5% levy on a £120 room would add £6, subject to the detailed local rules.
Which stays would be covered?
The proposals concern commercial overnight accommodation including hotels, guesthouses, bed and breakfasts and short-term lets. The levy would apply only to the first 28 consecutive days of a stay. Occasional hosts would be subject to a revenue threshold, with some local flexibility over the level.
Exemptions for students and vulnerable residents
The Government has confirmed national exemptions for student accommodation, care homes, children’s homes and school boarding houses. Temporary accommodation, shelters and refuges would also be exempt. Authorities could adopt certain additional limited local exemptions, potentially including camping pitches.
Where would the money go?
The Government says money raised would remain in the local area and could be used for public transport, high streets, public spaces, cultural attractions, events, security, street cleaning and visitor promotion. Actual revenue would depend on local rates, visitor numbers and accommodation prices.
Consultation and local approval required
Before introducing a scheme, an authority would have to publish a draft plan and impact assessment, consult residents and businesses, consider responses and publish final documents. Strategic authority members could propose changes. In Foundation Strategic Authorities, unanimous support would be required. Authorities operating a levy would have to publish annual reports on income and spending.
What would it mean for hotels and holidaymakers?
The levy could increase the final price of qualifying accommodation. Hotels and other providers would be responsible for accounting for and paying the levy, potentially adding administrative work. Ministers argue that percentage-based charging protects lower-cost stays and that local investment could support the visitor economy. The impact on demand and businesses would depend on the scheme adopted.
Greater Manchester already has a different scheme
A £1 per room per night charge introduced through a Business Improvement District in Greater Manchester in 2023 raised approximately £2.8 million in its first year, according to the Government. That arrangement uses a different legal mechanism from the proposed statutory levy.
When would charges begin?
The Bill must pass Parliament and receive Royal Assent. A levy would not automatically apply across England: each eligible authority would need to decide whether to introduce one and complete the required consultation and approval procedures. No single nationwide start date has been announced.
What happens next?
MPs and peers will scrutinise the legislation. Key questions include the effect on tourism and hospitality, the costs of administration, local accountability and how revenue would be spent. Until the law is enacted and local schemes are approved, the proposed levy is not a charge automatically added to hotel bookings across England.
Sources
- https://www.gov.uk/government/news/new-visitor-levy-powers-to-put-money-back-into-local-communities
- https://www.gov.uk/government/consultations/overnight-visitor-levy-in-england
- https://commonslibrary.parliament.uk/research-briefings/cbp-10158/
- https://www.gov.uk/government/publications/budget-2026-document/budget-2026-html