English Mayors Granted New Powers to Implement Overnight Visitor Levies

On 10 September 2026, the UK government officially announced that mayors and local leaders across England will be granted the authority to implement an 'overnight visitor levy,' commonly referred to as a tourist tax. This policy shift aims to provide local authorities with a dedicated revenue stream to improve local economies, boost tourism infrastructure, and support communities that host large numbers of visitors. While some cities like Manchester and Liverpool have previously utilized workarounds via business improvement districts, this new legislation will provide a standardized legal framework for such charges.

The move follows a consultation period that ran from late 2025 through early 2026. The government intends to include this power in an upcoming Overnight Visitor Levy Bill during the 2026–27 parliamentary session. This development aligns England with other regions, such as Scotland, where Edinburgh has already implemented a 5% visitor levy on qualifying stays. The wider context is a national push to decentralize fiscal power, allowing local leaders to manage the impacts of overtourism and reinvest in the visitor experience.

This policy will affect all domestic and international travellers booking overnight accommodation in participating English cities and regions. It specifically impacts those staying in hotels, hostels, and potentially short-term rental properties once local authorities enact their specific bylaws.

Makutet expects a fragmented rollout of these levies, as individual mayors will have the discretion to set rates and define 'qualifying stays.' We forecast that major tourist hubs like London, Manchester, and Bath will likely be the first to adopt these measures to combat the rising costs of urban maintenance, potentially leading to a more complex pricing landscape for travellers across the UK.