A quiet but significant change is coming for anyone booking a UK city break: from now on, local leaders across Britain can introduce an overnight visitor levy — essentially a tourist tax on your hotel bill. The UK Government confirmed the plan in a statement on 10 September, handing mayors and local authorities the power to charge a small fee on overnight stays and plough the money back into local services, culture and public spaces.

Unlike some versions floated earlier, this won't be an uncapped flat fee. The levy will be charged as a percentage of what you pay for your accommodation, which means cheaper rooms will attract smaller charges — good news for budget staycationers. One thing to note: UK residents won't be let off the hook when travelling within Britain, so a Londoner visiting Liverpool or Edinburgh would pay the levy too.

Several city leaders have been lobbying for exactly this. Steve Rotheram, Mayor of the Liverpool City Region, said the region's visitor economy is already worth more than £6.8bn a year and supports over 55,000 jobs, and estimates a modest levy could raise up to £18m annually — money that would stay local and fund the events, culture and infrastructure that draw visitors in the first place.

London looks set to follow. Mayor Sadiq Khan has strongly welcomed the change, saying the capital needs the power "sooner rather rather than later" — well, sooner rather than later — to stay competitive with other global cities that already charge visitors a nightly fee. No exact rate or start date has been confirmed for London yet, and Khan says he'll consult boroughs, hoteliers and tourism businesses before any final decisions. The move fits into a wider push to devolve fiscal powers to local authorities, part of the reforms that followed Andy Burnham becoming Prime Minister.

If you've travelled to places like Amsterdam, Barcelona or Venice, you'll already be familiar with the concept: a small percentage added to your nightly rate that funds city upkeep. The UK is now joining that club, though rates will vary by destination since each mayor decides locally.

For travellers, the practical impact is modest but real — expect a few extra pounds on a city hotel booking once schemes roll out, with the cost scaling with how much you spend on your room. In exchange, the idea is that the money improves the parks, transport, museums and events you actually came for. If you're planning UK trips in the next year or so, keep an eye on announcements from individual cities; the levy isn't automatic everywhere, and how much it adds will depend entirely on where you're staying and what you paid for the room.

Budget travellers arguably benefit most from the percentage-based approach — a £70 room will carry a far smaller levy than a £400 suite. Worth factoring in when comparing accommodation prices across UK destinations going forward.