England’s new visitor levy, also known as the tourist tax, will apply to the first 28 consecutive days of a stay.
That’s among the details revealed by the government today as the Visitor Levy Bill was introduced in Parliament. The scheme will allow mayoral strategic authorities in England to impose local overnight visitor charges for short-term accommodation from early 2028.
The government confirmed that levy will be charged as a percentage rate of the accommodation’s cost, rather than as a flat fee. It said 10 mayors have said that any levy they introduce will be no higher than 5%.
Strategic authorities wanting to introduce a levy will first need to publish a draft plan with details on the proposed rate, threshold, exemptions and how the money will be spent as well as an impact assessment for the local economy, businesses and visitors, plus
They be required to consult local people and businesses before taking a final decision.
People who rent out a spare room occassionally will only pay the levy if they earn above a set amount. Full exemptions include student accommodation, care homes, children’s homes, school boarding houses, temporary accommodation, shelters and refuges.
Housing, communities, and local government secretary Angela Rayner said:
“Millions of people visit our wonderful towns and cities each year, and it’s right that our communities should be able to feel the benefit of that footfall.
“Every pound raised through these levies will stay in the local area. Whether that’s better transport, thriving high streets, or more attractions that keep visitors coming back.
“This is about giving mayors and local leaders the choice to invest back into what matters most to local people, while protecting lower-cost stays and making sure businesses have their say.”
Mayors across England have backed the scheme but some business groups have said it will have a negative impact on tourism.
According to the UKHospitality report, a 5% levy by 2030 would lead to a £1.8 billion reduction in tourism spending, 9 million fewer nights spent in accommodation and 33,000 jobs lost.
The research said it would also cause a reduction in GDP of £2.2 billion, a £1.6 billion tax increase for holidaymakers, £688 million in reduced tax receipts to the Treasury and a loss of £101m in direct investment from hospitality and tourism businesses.
