Holiday stays in England are set to get pricier. The government has confirmed that mayors across the country will be handed the power to charge a visitor levy on hotels, B&Bs and Airbnbs – and with no cap written into the legislation on what they can charge. Angela Rayner, the local government secretary, unveiled the plans at a meeting with mayors in Manchester, with a bill expected in parliament within months and detailed schemes to follow in early 2028.
In practice, most visitors won't notice a postcode lottery straight away. Every Labour metro mayor has agreed to keep their charge at or below 5% of the cost of a night's stay, meaning England's major cities will cluster around that rate. But there's a political split: mayors on parts of the east coast – two from Reform UK and one Conservative – have said they simply won't impose the tax at all, so whether you pay could depend on where you're staying.
The charge applies as a percentage of the room rate rather than a flat fee, and Westminster will limit the number of nights it can be charged so long-term renters aren't caught. Casual, occasional lets get an exemption, and mayors can choose to wave through things like festival campsites. They'll also be able to share the revenue with local councils.
The hospitality industry is furious. UKHospitality estimates a 5% levy nationwide could cost 33,000 jobs and knock £2bn off the economy, with tourism-heavy spots like the Lake District and Blackpool hit hardest. Premier Inn's owner called the plans "hugely damaging", and the trade body's chief executive points out that unlike Paris, Rome or Berlin, England's version comes with no statutory ceiling. Ministers counter that local leaders need the money: 28 councils needed emergency funding totalling £1.3bn last year, and mayors argue the cash will pay for the services, parks and attractions visitors actually use.
England is catching up with the rest of these islands, too. Edinburgh became the first Scottish city to approve a 5% levy in July, and Welsh councils will be able to charge £1.30 per person per night from April 2027. Anyone who has checked into a hotel in Amsterdam, Barcelona or New York already knows the drill – the line on the bill for a city tax is standard practice almost everywhere else.
For travellers, the practical takeaway is simple: from around 2028, budget an extra few percent on accommodation in English cities, check whether your destination's mayor has opted in, and expect the money to be earmarked for local tourism infrastructure. If you're heading to the countryside or a seaside town outside the metro-mayor areas, you may well pay nothing at all.