Travellers booking a hotel in London or a B&B on the coast may soon spot a new line on their bill. The UK government has confirmed that mayors across England will be given the power to charge a visitor levy on overnight stays — and while the exact rate will be up to each mayor, it's expected to sit at or below 5% of the accommodation cost.
The levy would cover all forms of paid accommodation: hotels, holiday rentals, guesthouses and B&Bs. It applies to everyone, regardless of nationality or reason for travel. Not every destination will sign up, though — it's an opt-in scheme, and some places have already said no. Skegness and Hartlepool have both come out against it, while London's mayor is among those who back a charge but have pledged to keep it under 5%. Expect the first levies to appear before the end of 2029.
The hospitality industry is not happy. UKHospitality estimates a 5% charge would mean 11.9 million fewer visitor nights and £1.8 billion less tourism spending in 2030, along with the loss of nearly 33,000 jobs. The World Travel & Tourism Council has flagged competitiveness concerns too: its research found 29% of travellers from the UK's biggest source markets — the US, France and Germany — would consider going elsewhere if hit with a €10 visitor tax. Among Brits themselves, 39% said a £10 levy would make them holiday abroad or skip a domestic trip.
If England does go ahead, it won't be breaking new ground in Britain. Edinburgh rolled out a 5% charge on paid accommodation this summer, capped at five consecutive nights. Manchester got there first in 2023 with a flat £1 per room, per night, applied to city-centre hotels and serviced apartments with annual rent of £75,000 or more. Wales is next: local authorities there can charge up to £1.30 per person per night from April 2027.
For holidaymakers, the practical takeaway is that the cost is likely to be modest — a few pounds a night in most cases — but it will vary by city, so it's worth factoring into a budget when comparing destinations. There's also a chance travellers will simply favour towns and regions that opt out, which could shape where the levies actually appear. Watch this space: with the rollout window running to 2029, individual mayors will be announcing their own schemes one by one.