Levy on Overnight Trips Will Help Mayors Invest in Local Growth

New Levy on Overnight Stays Will Empower UK Mayors in Tourism and Infrastructure Investment

England’s mayors are set to receive new powers under a government initiative that will allow them to levy charges on overnight stays, aiming to boost local growth through investment in infrastructure, transport, and the visitor economy. This move is part of an ongoing effort by the UK government to devolve more authority to regional leaders.

Equalizing Power with Global Cities

This new charge will enable English mayors to take steps similar to their counterparts in major global cities such as New York, Paris, and Milan. In these cities, tourist levies have long been a common tool for funding infrastructure improvements and enhancing the visitor experience. The UK government’s decision is seen as a significant step towards aligning local governance with international best practices.

The levy will apply to overnight stays in accommodation providers such as hotels, holiday lets, bed and breakfasts, and guesthouses. The charge would be introduced by mayors based on what is deemed necessary for their specific areas, making it a flexible tool for diverse communities across England.

Consultation and Flexibility

The government has launched a consultation period that will run for 12 weeks, inviting businesses, communities, and other stakeholders to provide input on how the new levy should be implemented. This inclusive approach aims to ensure that the measure is tailored effectively to local needs.

Under the proposals, certain types of accommodation, such as emergency shelters, homeless shelters, and registered Gypsy and Traveller sites used as primary residences, would be exempt from the charge. Mayors also have the flexibility to introduce additional exemptions based on their local economies, allowing for a more nuanced approach to funding.

Mayoral Reactions and Economic Impact

The move has been welcomed by many mayors who see it as a crucial step in giving them greater control over how money is spent locally. For instance, Mayor of London Sadiq Khan highlighted that the extra funding would directly support London’s economy and help cement its reputation as a global tourism and business destination.

Other mayors have expressed similar sentiments, emphasizing that these new powers will enable their regions to invest more in improving transport, supporting businesses, and enhancing infrastructure. For example, Mayor of Liverpool City Region Steve Rotheram pointed out the economic significance of the visitor economy, which is worth over £6 billion annually and supports thousands of jobs.

Mayors across England are optimistic that these new levies will help revitalize their regions by providing a dedicated source of funding for critical local projects. The levy could be used to improve transport infrastructure in cities like London or support major events such as UEFA EURO 2028 in Liverpool.

Future Implications and Broader Devolution Agenda

The new levy on overnight stays is seen as part of a broader agenda by the UK government to devolve more power to local authorities. This initiative follows other measures aimed at giving regional leaders greater autonomy over key decisions that impact their communities.

Secretary of State for Housing, Communities and Local Government Steve Reed stated, “Tourists travel from near and far to visit England’s brilliant cities and regions. We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”

The government’s plan is part of a larger strategy to improve public services, reduce debt, combat the cost of living, and drive economic growth. The new levy on overnight stays represents an innovative way to address regional challenges while ensuring that local leaders have the tools they need to thrive.