A proposed visitors levy could mean your next holiday in the UK could cost more, and tourism chiefs have been quick to respond to the news calling it a ‘blow’ for those who prefer to staycation
Holidaymakers staying in cities, towns and villages across the UK could soon face daily charges.
Mayors in England will be given fresh powers to introduce a visitor levy on overnight guests in a bid to help them raise funds for their local area . However, some in the tourist industry have slammed the move, saying it could “deter people from choosing holidays in the UK”.
The Ministry of Housing, Communities and Local Government unveiled the plans in a statement ahead of today’s budget, claiming that it would allow mayors to: “invest in transport, infrastructure, and the visitor economy through a new levy on overnight stays”.
Minister Steve Reed said: “Tourists travel from near and far to visit England’s brilliant cities and regions. We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”
England sees more than 130 million overnight visits each year, and in the plans, the new levies would apply to overnight stays in hotels, holiday lets, B&Bs, and guesthouses.
There will be exemptions for emergency accommodation, homeless shelters and registered Gypsy and Traveller sites used as primary residences, and mayors and local leaders will have powers to exempt other accommodation types if they wish. The government’s statement went on: “The move would ensure UK mayors have the same powers as their counterparts in cities like New York, Paris and Milan, where charges on short-term trips are already commonplace.
“Money raised could then help fund local projects that improve communities and enhance tourists’ experiences, that could potentially help attract more visitors – without needing approval from central government. Research also shows that reasonable fees have minimal impact on visitor numbers.”
However, tourism chiefs were quick to respond to the announcement, claiming it will add an extra cost to already squeezed households. Ben Spier, head of policy and regulation at Sykes Holiday Cottages, said: “The introduction of a tourism tax in the UK represents a further blow for our country’s hospitality and staycation industry which has already been squeezed by tax rises and regulatory changes in recent years.
“This levy won’t just be felt by families already managing rising household costs, it threatens to deter people from choosing holidays in the UK which would be a serious blow for the many communities that depend heavily on spending from the overnight visitors who will face this levy. “
Ben pointed out: “The UK’s tourism and hospitality businesses are already among the most heavily taxed in Europe, facing everything from steep business rates and corporation tax to some of the highest VAT levels in the sector. Adding a new tourism levy risks putting more pressure, and more admin, on the many small businesses – from holiday let owners to local pubs, shops and attractions – who rely on a thriving visitor economy.”
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Mayors from across the UK responded positively to the news in a statement, with Mayor of London Sadiq Khan claiming: “The extra funding will directly support London’s economy, and help cement our reputation as a global tourism and business destination.” While Mayor of the West of England Helen Godwin said: “These new powers are a real vote of confidence in our region taking more control of our future.
“Proceeds from an overnight visitor levy, that people from across the West are used to paying on holiday ourselves, have the potential to support and enhance the sector’s businesses and workers – including with better transport options.”
There will now be a 12-week consultation period where businesses, communities, and other interested parties can have their say on how the measures would work. The consultation is available on GOV.UK and will close on February 18, 2026.
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