Hotel guests and visitors to bed and breakfasts across England are set to face a new nightly charge, as the government grants mayors the power to impose a local 'bed tax'.
What is the New Tourist Tax?
Ministers have officially given the green light for mayors in England to introduce the new levy on accommodation. This move is expected to heap additional costs onto stays for both British holidaymakers and foreign tourists. The exact level of the charge will be set locally, but it is anticipated to be in the region of around £2 per night.
In total, this policy could generate a massive windfall of more than £500 million a year for regional authorities. The capital is poised to be the biggest beneficiary by far, with London's Labour Mayor, Sadiq Khan, potentially receiving a £200 million annual boost from the scheme.
Support and Opposition for the Levy
Proponents of the charge, who are understood to include Sir Sadiq Khan himself, argue that it brings England in line with other major global destinations. They point out that cities like Paris already have a similar tourist tax in place, while Manchester operates its own version known as a 'business levy'.
However, the announcement has been met with fierce opposition from the hospitality industry, which has accused the government of breaking previous promises not to proceed with the policy. The criticism is not limited to industry bodies. Tory Tees Valley Mayor Ben Houchen has publicly stated he will refuse to implement the tax in his area, branding the initiative a straightforward 'cash grab'.
Consequences for British Holidaymakers
Critics of the plan highlight the significant financial impact it will have on UK residents. With British people spending hundreds of millions of nights in hotels and B&Bs within England every year, the new charge means domestic tourists will have to pick up a substantially bigger tab for their stays. This local government power shift marks a significant new chapter in how tourism and local services are funded across the country.
