The Secretary of State for Housing, Communities and Local Government, Steve Reed, has confirmed that new discretionary mayoral powers to introduce an overnight visitor levy are included within the English Devolution and Community Empowerment Bill.
Overnight charges on hotel stays—often referred to as a tourist tax—are widely used in major cities across the USA, where local or state taxes are added to accommodation costs and reinvested into the area. Similar schemes operate across Europe, including in Paris, Amsterdam, Barcelona, Berlin, Rome, and Lisbon.
Within the UK, Scotland is currently the only nation to have approved such levies. Edinburgh’s scheme will go live in July 2026 at a flat rate of 5%, with Glasgow and Aberdeen expected to follow. A small number of English cities, such as Manchester and Liverpool, have introduced ‘Accommodation BIDs’, though these operate differently from an overnight levy.
PaddingtonNow BID represents 79 hotels & premises, so it is important that members are fully informed about the potential introduction of an overnight charge in England.
Read the full government announcement here: https://www.gov.uk/government/news/levy-on-overnight-trips-will-help-mayors-invest-in-local-growth.
Visitor Levy in England – Consultation
The government has opened a consultation to gather views on the potential impact of an overnight visitor levy. The consultation is open until 18 February 2025.
Have your say:
https://www.gov.uk/government/consultations/overnight-visitor-levy-in-england
We will continue to monitor developments and update this page as new information becomes available.
