Travellers planning a city break in England will want to budget for one extra line item from 2028. The UK government has confirmed plans for an overnight accommodation levy, announced by Chancellor John Healey during his Budget speech on Wednesday, 28 October.
Here's how it works: rather than a flat fee per night, the charge will be calculated as a percentage of what you pay for your room. That's a meaningful difference. A backpacker in a budget hostel will pay pennies, while someone booked into a five-star London hotel will contribute considerably more. The exact rates haven't been set at national level — and that's deliberate.
The powers will sit with England's 13 Mayoral Strategic Authorities, including London, meaning mayors and local leaders get to decide whether to introduce the levy in their area at all, how much to charge, and how to spend the money raised. The scheme goes live from 2028, with implementation details to be worked out locally over the coming years.
In practice, that means the tax landscape will look patchy. One city might introduce a modest charge while a neighbouring authority opts out entirely, so two trips within England could attract very different totals. If you're booking a multi-city itinerary — say Manchester, Birmingham and London — it's worth checking each destination's rules closer to the time.
For now, nothing changes. The levy only takes effect from 2028 and no authority has confirmed its rate yet, so trips booked for the next couple of years carry no surprise. But given how quickly accommodation costs have climbed in UK cities, even a low single-digit percentage will be noticeable on a week-long stay in the capital. Travellers from South Africa and elsewhere heading to the UK should treat this as a heads-up rather than a reason to rush bookings.
Why does it matter? Because city tourist taxes are becoming the norm across Europe rather than the exception — cities from Amsterdam to Barcelona already charge per-night fees — and the UK has long been a holdout. From 2028, factor it into your accommodation budget the same way you'd factor in a visa fee or airport transfer. Business travellers and holidaymakers alike will see it appear on their hotel bill, not at the border.
The practical takeaway: if a trip to London or another English city is on your list for 2028 or beyond, keep an eye on announcements from the local authority — the rate, exemptions and how the funds are used (often local transport or tourism infrastructure) will all be decided city by city.
