England's overnight visitor levy: what's decided
No tourist tax can be charged in England today. On 10 September 2026 the government confirmed it will give mayors the power to charge one, and set out how it will work. A new law is needed first.
In short: a percentage of the accommodation price, set by each mayor or strategic authority after local consultation; one rate across its whole area; no cap on the number of nights; no national maximum rate. Expect the first schemes to be announced from 2028.
What the government confirmed
After a consultation from 26 November 2025 to 18 February 2026, the Ministry of Housing, Communities and Local Government published its response on 10 September 2026:
- Who can charge it: all Mayoral and Foundation Strategic Authorities, including the Mayor of London. Each decides whether to, and must consult locally first.
- How it's charged: a percentage of the cost of the accommodation, "rather than as a flat fee". Meals are left out. One rate per area: it can't vary by season, type of accommodation or local council.
- No cap: the government doesn't plan a maximum rate (it calls this "finely balanced" and will keep it under review), and areas can't cap the number of nights.
- What's covered: all short-term commercial visitor accommodation: hotels, B&Bs, hostels, campsites, self-catering, short-term lets, and university or religious buildings let commercially. People letting a room only occasionally will fall under a small-scale threshold.
- Exemptions: non-commercial stays, temporary accommodation, refuges and charitable shelter, and Gypsy and Traveller sites everywhere. Areas may also exempt tent and touring caravan pitches and hostels. Exemptions go by type of accommodation, never by who the visitor is.
- Who collects: accommodation providers, who work out and pay what they owe. The strategic authority acts as the tax authority.
- When: a Bill "in due course"; the government expects areas to be able to set out their plans by March 2028.
Which mayors want one
The announcement quoted the mayors of the Liverpool City Region (who said it could raise up to £18 million a year), the East Midlands, London, West Yorkshire, the West of England and South Yorkshire welcoming the power. The mayor of York and North Yorkshire said no decision would be made without a full public consultation. None has proposed a rate yet.
What you pay in England today
Only voluntary hotel charges set up through Accommodation Business Improvement Districts: Manchester (£1 plus VAT per room per night) and Liverpool (£2 per room per night). Cambridge hotels voted against one in 2024.