The UK government has opened a consultation on an overnight visitor levy that would allow local authorities in England, notably Mayoral Strategic Authorities, to introduce a visitor tax on overnight stays.
The consultation, which closes on 18 February 2026, seeks input from businesses, accommodation providers, local leaders and industry stakeholders on how such a tourism levy could be designed and operated.
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Proposal aims and scope of overnight visitor levy
The overnight visitor levy consultation sets out plans to give English mayors and strategic authorities the discretionary power to apply a local levy on overnight stays in paid accommodation, including hotels, bed and breakfasts, guesthouses and other short-term rentals.
Under the consultation, respondents are asked to comment on key design elements such as which types of accommodation should be included, how levy rates should be calculated, and how any revenues should be used locally.
The document also invites views on administrative arrangements for the levy, potential liability rules, and ways to minimise regulatory burdens on businesses.
Central to the consultation is whether Foundation Strategic Authorities — not just mayoral areas — should also have the power to introduce a levy.
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By GlobalDataPossible implications for accommodation providers
The proposed tourism tax could add a new financial and administrative dimension for many accommodation providers in England should local areas choose to adopt a levy.
Industry discussion and expert commentary suggest that levies — which may be structured as per-night charges or percentage-based additions to accommodation costs — are already in force in other parts of the UK and Europe, such as Scotland and Wales, offering preview scenarios for how implementation might work.
Providers would likely be responsible for calculating, collecting and remitting the visitor levy, which could influence pricing strategies and billing systems.
The hospitality sector is advised to monitor the consultation closely and participate to help shape the eventual policy frameworks.
Broader context and potential local impact
The overnight visitor levy proposal forms part of a wider UK devolution agenda aimed at giving local leaders more fiscal tools to support transport, infrastructure and the visitor economy.
Similar levies in cities abroad and in other UK jurisdictions are often used to fund local tourism services, destination management and related infrastructure.
Responses to the consultation will inform final policy decisions and potential legislation, and could influence how English cities and regions compete as tourist destinations.
The outcome may also affect global travel trends and perceptions of the UK as a destination for international visitors.
The consultation document and details on how to respond are available on the UK government’s official site.
