England mayors to levy nightly tourist tax on hotel and Airbnb stays
English ministers plan to grant mayors power to charge overnight fees for tourists, potentially raising hundreds of millions in revenue while risking job cuts in the hospitality sector.
Ministers in England are planning to introduce a nightly levy on hotel and short-term rental stays, similar to existing schemes in Scotland. The proposal, first raised by the government in November, aims to provide mayors with new authority over local tourism taxation. Under the proposed model, revenue generated would be directed toward improving local transport and public services.
Housing Secretary Angela Rayner is scheduled to meet with mayors on Thursday to discuss the framework. Unlike a flat fee, the levy is expected to function as a percentage of accommodation costs. This adjustment is intended to shield budget travelers from excessive pricing increases while still generating significant funds for municipalities. The government hopes the charge will not become prohibitively expensive.
Industry leaders have expressed concern regarding the implementation. Allen Simpson, chief executive of UKHospitality, warned that the measures could jeopardize employment in certain communities. He noted that tourism taxes in cities like Edinburgh have already caused damage to the sector. Hospitality firms argue that holiday prices in the UK are already inflated by increased VAT and additional employment costs introduced during the last budget. Simpson characterized the new authority as an open-ended power allowing mayors to set tax levels at any amount they deem appropriate.
