The proposed Overnight Visitor Levy, mentioned in the King’s Speech last May, has yet to be introduced in Parliament.
Mayor Andy Burnham has positioned the measure within his broader devolution strategy, allowing mayors to outline how the new revenue will be used by March 2028.
As mayor of Greater Manchester, he oversaw the launch of the City Visitor Charge in April 2023—a £1 per room, per night levy designed to fund initiatives aimed at boosting visitor numbers.
Regional mayors argue that the levy is necessary to generate additional revenue for local priorities and to spur economic growth.
Such taxes are widespread across Europe and globally; cities like New York, Amsterdam, and Rome impose overnight charges on accommodation to finance local services, although many European municipalities cap these fees.
London Mayor Sir Sadiq Khan backs a tourist tax on overnight stays, estimating it could generate over £350 million annually for the capital, based on a January analysis.
The estimate from Central London Forward (CLF), which speaks for twelve central London boroughs, assumes a 3 % levy on room rates, applicable to both hotels and short‑term rentals.
In Scotland, local authorities have the power to impose a visitor levy on overnight accommodation; in Edinburgh, the rate stands at 5 % for hotels, bed‑and‑breakfasts, and self‑catering units, with a maximum of five nights.
Wales plans to introduce a capped levy of £1.30 per person per night starting April next year.
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