Government urged to back down on ‘visitor levy’ in England

Industry associations ramped up efforts to try to halt government moves towards allowing the imposition of local tourism taxes in England as a consultation on granting mayors and local authorities the right to impose Visitor Levies ended on February 18.

 

More than 200 hospitality bosses, including the chief executives of Butlin’s, Haven (holiday parks), Hilton Hotels, IHG Hotels & Resorts, Merlin Entertainments, Parkdean Resorts, Travelodge and Whitbread wrote to the Chancellor urging the government to scrap the plans.

 

Led by industry association UKHospitality, the signatories suggested a tax of £2 per person per night could add “£100 or more” to the cost of a two-week domestic family holiday and “force families to head overseas . . . put jobs at risk and drain money from local communities”.

 

The World Travel & Tourism Council (WTTC) also claimed that tourism levies “would dent growth, restrict jobs and reduce competitiveness”.

 

A consultation on granting local authorities in England the power to impose a visitor levy was due to end on Wednesday (February 18). 

 

Local authorities already have the power to apply a visitor levy in Scotland and Wales, and Edinburgh will become the first to do so with a 5% levy on hotel, B&B and holiday bookings to come into force on July 24.

 

Edinburgh City Council agreed a first ‘visitor levy spending programme’ last week with a detailed package of measures, costing more than £90 million over three years, “to enhance Edinburgh’s reputation as one of the most beautiful and enjoyable destinations in the world”.

 

The 2024 Visitor Levy (Scotland) Act requires funds raised by a levy to be invested in local facilities and services ‘substantially used’ by business and leisure visitors. 

 

Edinburgh Council leader Jane Meagher said: “We’re proud to be the first local authority in the UK to push ahead with a city-wide visitor levy. I can’t stress enough just how big an opportunity this is for our city, our residents and our visitors.

 

“These spend programmes will help us not only sustain and enhance the things that make our city special, but also better manage the effects of tourism and major events on those who live here. What’s not to like about visitors to Edinburgh contributing towards projects and services that benefit us all?”

 

The levy in the city will be applied at a rate of 5% of the accommodation price for up to five nights from July 24 and apply to all paid-for overnight accommodation booked from October 1 last year.

 

The scheme is projected to raise up to £50 million a year. Aberdeen and Glasgow have also agreed to impose visitor levies.

 

More funds for ‘local priorities’

The government proposes to allow mayors and local authorities in England to introduce a “modest” tourist tax or visitor levy, saying mayors “should consider the right level for their area". 

 

Local government secretary Steve Reed argued: “Mayors and other local leaders are best placed to identify and invest in the projects and infrastructure that drive growth and make a place attractive for visitors and residents.” 

 

Some cities in England already have a ‘levy’ in place in so-called ‘business improvement districts’ (BIDs) but this is voluntarily added to bills by local businesses. 

 

A visitor tax of £1 per room has been in place in Manchester since 2023 and raised £2.8 million in its first year, with the money funding a campaign to boost visitor numbers in “lower occupancy months”. A Liverpool BID introduced a similar levy in 2025.

 

A UK government spokesperson explained: “We’re giving mayors powers to put more money into local priorities. We expect any new charges to be modest and in line with other countries.”