The UK government will give regional mayors in England the power to introduce an Overnight Visitor Levy, an uncapped charge calculated as a percentage of accommodation costs for hotels, bed and breakfasts and short‑term lets. Ministers say the levy would not be a flat fee and local leaders would decide how revenue is reinvested; mayors must clarify by March 2028 how they would spend any money raised. The policy, outlined in the King's Speech in May and first raised under Sir Keir Starmer in November, will be set out after Housing Secretary Angela Rayner meets mayors at No 10 North. UKHospitality chief executive Allen Simpson warned the levy could add about £100 to £120 on average to a family holiday and said "jobs are now at risk," while Mayor of London Sadiq Khan said it "needs to happen sooner rather than later." Two English cities already operate voluntary schemes, a £1 per room per night charge in Manchester and a £2 nightly charge in Liverpool, and the government notes similar levies exist in Scotland and many European capitals, though some European cities cap their charges. Local leaders could therefore raise overnight costs in their areas and use the receipts for locally decided priorities, but critics including Westminster leader Paul Swaddle say surrounding councils must share revenue to see any benefit.
