UK: England’s mayors will have the ability to put money into transport, infrastructure, and the customer financial system by means of a brand new levy on in a single day stays.
Any new levy would apply to guests at lodging suppliers together with resorts, vacation lets, mattress and breakfasts, and guesthouses.
It might be as much as mayors and different native leaders to introduce a “modest cost if it’s proper for his or her space”.
Steve Reed, secretary of state for housing, communities and native authorities, stated: “Vacationers journey from close to and much to go to England’s good cities and areas. We’re giving our mayors powers to harness this and put more cash into native priorities, to allow them to preserve driving development and investing in these communities for years to come back.”
A session on the brand new measure will run for 12 weeks and shut on 18 February 2026.
The announcement comes forward of at the moment’s Funds.
Business reactions:
Sadiq Khan, mayor of London
“Giving mayors the powers to boost a vacationer levy is nice information for London. The additional funding will immediately assist London’s financial system, and assist cement our repute as a worldwide tourism and enterprise vacation spot. It additionally exhibits what might be completed when ministers work intently with mayors to devolve extra powers to cities and areas.”
Helen Godwin, mayor of the west of England
“These new powers are an actual vote of confidence in our area taking extra management of our future. Proceeds from an in a single day customer levy, that individuals from throughout the West are used to paying on vacation ourselves, have the potential to assist and improve the sector’s companies and staff – together with with higher transport choices.”
Andy Burnham, mayor of Better Manchester
“Better Manchester already has a thriving customer financial system, and a customer levy will assist us maintain good development over the following decade. The levy will permit us to put money into the infrastructure these guests want, like retaining our streets clear and enhancing our public transport system by means of later operating buses and trams, ensuring each expertise is a constructive and memorable one.”
Joss Croft, CEO, UKinbound
“The announcement that regional mayors may introduce a levy on in a single day stays will trigger severe concern throughout England’s customer financial system. Worldwide guests to the UK already face a stack of costs together with visa or ETA charges, a number of the highest Air Passenger Obligation charges on the planet, and 20 per cent VAT on hospitality, costs which weaken the UK’s attraction as a vacation spot to go to.
“We urge the UK authorities to work intently with business to keep away from measures that might make the UK much less aggressive, much less enticing to worldwide guests, and put jobs and regional development in danger.”
Kay Buxton, chief government, Marble Arch London BID
“We consider that the in a single day levy have to be proportionate, and never pose a menace to London’s customer financial system. The funding raised needs to be reinvested domestically to enhance circumstances for guests. Enterprise enter to the design and roll-out of a scheme for London can be very important and Marble Arch BID will work with our colleagues in neighbouring Westminster BIDs to symbolize our 17 resort members, who between them present over 3,300 resort rooms, to affect the spending priorities of the Mayor of London and ensure the levy is invested in initiatives and companies that profit the tourism sector.”
Ben Spier, head of coverage and regulation, Sykes Vacation Cottages
“The introduction of a tourism tax within the UK represents an extra blow for our nation’s hospitality and staycation business which has already been squeezed by tax rises and regulatory adjustments lately.
“This levy gained’t simply be felt by households already managing rising family prices, it threatens to discourage folks from selecting holidays within the UK which might be a severe blow for the various communities that rely closely on spending from the in a single day guests who will face this levy.
“The UK’s tourism and hospitality companies are already among the many most closely taxed in Europe, going through the whole lot from steep enterprise charges and company tax to a number of the highest VAT ranges within the sector. Including a brand new tourism levy dangers placing extra strain, and extra admin, on the various small companies – from vacation let house owners to native pubs, retailers and sights – who depend on a thriving customer financial system.”
Kate Nicholls, chair, UKHospitality
“This can be a surprising U-turn that can solely make life costlier for working folks. It may price the general public as much as £518 million in further tax once they journey within the UK and having knock-on impacts for the broader hospitality sector. Make no mistake – this price can be handed immediately onto shoppers, drive inflation and undermine the federal government’s intention to cut back the price of dwelling.”
Highlights:
- England’s mayors are being given new powers to introduce an in a single day lodging levy to assist transport, infrastructure, and the customer financial system.
- The levy may apply to resorts, serviced residences, vacation lets, B&Bs, and guesthouses, with every area deciding if and easy methods to implement it.
- A 12-week session runs till 18 February 2026, with the announcement made forward of the UK Funds.
- Mayors in London, Manchester, and the West of England have welcomed the measure as a strategy to reinvest in tourism and native companies.
- Business teams warn the levy may improve journey prices, cut back UK competitiveness, and put strain on hospitality companies already going through excessive taxation.
