The Overnight Visitor Levy, which was outlined in the King’s Speech in May, has not been brought forward in Parliament yet.
Prime Minister Andy Burnham is framing the policy as part of his wider devolution agenda.
Under the plans, mayors and leaders of Foundation Strategic Authorities – which cover some regions without a mayor – would need to clarify by March 2028 how they would spend the new revenue.
Two cities in England already run their own voluntary schemes – a £1 per room, per night City Visitor Charge in Manchester, introduced when Burnham was mayor of the region, and a £2 nightly charge in Liverpool. These are business-led schemes where hotels choose to pool the money raised to support local tourism.
Regional mayors do not currently have the power to bring such fees in themselves. They argue it is needed to boost economic growth.
Mayor of London Sir Sadiq Khan, who will be at the No 10 North meeting, told the Standard on Thursday morning it “needs to happen sooner rather than later”.
But Paul Swaddle, leader of Westminster City Council, responded by warning “there will be precisely zero benefit to Westminster residents and businesses” if Sir Sadiq does not share some of the cash raised with councils.
The taxes are common in Europe and the rest of the world, with New York, Amsterdam and Rome applying overnight charges to accommodation stays to fund local services. However, they are capped in several European cities.
In Scotland local authorities can charge a visitor levy on overnight accommodation. In Edinburgh, the rate is 5% for those staying overnight in hotels, bed and breakfasts and self-catering facilities – capped at five nights.
In Wales, a capped levy of £1.30 per person per night is set to be introduced in April next year, but it will be up to local authorities to decide whether to roll it out.
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