Tourists visiting England could soon face a small fee on overnight stays, as new powers granted in the Autumn Budget 2025 allow local mayors and officials to introduce a visitor levy. The charge would apply to hotels, B&Bs, guesthouses and holiday lets, bringing England in line with Scotland, Wales and international destinations like New York, Paris and Milan.
Steve Reed, Secretary of State for Housing, Communities and Local Government, 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.'
With England attracting over 130 million overnight stays per year, the revenue could fund local projects such as transport improvements and infrastructure. Regional mayors have expressed support, with some preparing to implement the levy as soon as next year. From 2026, Scotland and Wales will introduce their own taxes, including £1.30 per night in Cardiff and up to 5% on accommodation in Edinburgh.
In London, Mayor Sadiq Khan has long campaigned for a tourist tax to support entertainment hubs and improve areas like Oxford Street. Lambeth Council is proposing an overnight levy for boroughs including Brixton, Clapham and the South Bank, which draws tens of millions of visitors annually. The 'Love Lambeth Levy' would fund street cleaning and public realm maintenance.
Other areas considering the tax include South Gloucestershire, where funds would boost local transport, and Bristol, where the levy would support cleaning public spaces. Councils in the West of England, York, North Yorkshire and West Yorkshire also welcome the plans. Mayor of Greater Manchester Andy Burnham is seeking to implement a compulsory tourist tax in Manchester city centre ahead of the Euro 2028 Championship.
