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Local leaders in England will be given the power to impose a ‘modest charge’ on visitors, the Ministry of Housing, Communities and Local Government said
Millie CookePolitical CorrespondentTuesday 25 November 2025 15:08 GMTComments
open image in galleryHousing secretary Steve Reed said the measures would put more money into local priorities (PA)
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Local mayors will be allowed to levy a “tourist tax” on overnight stays, the government has announced as part of an attempt to put more money into England’s cities and regions.
Local leaders in England will be given the power to impose a “modest charge” on visitors, the Ministry of Housing, Communities and Local Government said on Tuesday.
It comes just one day before Rachel Reeves unveils her long-awaited Budget in the Commons on Wednesday, where she is expected to set out a swathe of tax rises to plug a multi-billion pound gap in the public finances.
open image in galleryHousing secretary Steve Reed said the measures would put more money into local priorities (PA)London mayor Sadiq Khan, who has been a vocal proponent of the measure, welcomed the announcement, saying it is “great news for London”.
He added: “The extra funding will directly support London’s economy, and help cement our reputation as a global tourism and business destination. It also shows what can be done when ministers work closely with mayors to devolve more powers to cities and regions.
“As part of developing our plans for the levy we will work closely with the hospitality and tourism sectors to ensure it delivers the maximum benefits for London and our brilliant businesses.”
A research report from the Greater London Authority in 2017 estimated that a 5 per cent levy on the cost of accommodation could raise £239m per year in the capital.
Announcing the measures ahead of the Budget, local government secretary Steve Reed said: “Tourists travel from near and far to visit England’s brilliant cities and regions.
open image in galleryMayor of London Sadiq Khan welcomed the announcement (PA)“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.”
However, there are fears that such a levy could negatively impact the hospitality industry as British tourists could be deterred from taking domestic city breaks.
England is currently the only G7 country where local authorities are prevented from implementing tourist taxes.
A consultation on the details of the measure will run until 18 February.
This is a breaking news story. More to follow...
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