Revenues could support the upgrading of transportation, public spaces, cultural programs.
A new bill will allow the collection of a tourist tax for stays in the UK, bringing English cities in line with practices across Europe.
Travelers spending the night in England may soon notice a new line on their bill: the government has taken steps to allow city mayors to introduce a tourist tax.
According to government statements, the new charge will be "modest" and will apply to hotels, B&Bs, short-term rental accommodations, and other paid lodging. This will align England with Scotland and Wales, where similar taxes are already being introduced.
Ministers state that the funds raised will go towards transportation, infrastructure, and the entire tourism economy. However, the initiative has already faced resistance from the hospitality industry, which warns that it will add costs in an already high-price environment.
Under current plans, mayors across the country will be able to set a local charge on visitors and direct the proceeds back into their regions.
According to the government, the revenues could support the upgrading of transportation, public spaces, cultural programs, and improve conditions for travelers.
England receives over 130 million overnight stays each year, and officials claim that even a small surcharge could significantly enhance public infrastructure and services without increasing central government spending.
Neighboring countries have already taken similar measures in an effort to boost funding for local needs.
In Scotland, Edinburgh is introducing a tourist tax of 5 percent of the nightly room rate starting in July 2026. In Wales, local authorities will be able to charge £1.30 (€1.50) per person per night starting in April 2027.
Several British leaders have welcomed the initiative, including London Mayor Sadiq Khan, who called the measure "great news for London."
"As we develop our collection plans, we will work closely with the hospitality and tourism sectors to ensure it brings maximum benefit to London and our wonderful businesses," Khan said in a statement.
Liverpool Mayor Steve Rotheram noted that cities like Barcelona and Paris collect "tens of millions" through similar schemes, stating that their own charge would help fund major events and improve local infrastructure.
Manchester Mayor Andy Burnham stated that the region already has a thriving tourism economy and that the charge would help "sustain growth over the next decade."
Support was also expressed by mayors from West England, West Yorkshire, York, North Yorkshire, and North East England, noting that a small charge could strengthen transportation, fund festivals, and help maintain heritage sites.
The hospitality industry opposes
Not everyone considers tourist taxes a successful solution.
The head of the industry association UKHospitality, Kate Nicholls, warned that the "devastating holiday tax," by internal estimates, could cost society up to £518 million (€588 million), and these costs would be passed on to consumers.
If set at the level of the visitor charge being prepared in Edinburgh, which is 5 percent of the total accommodation cost, "it would effectively raise the VAT rate to 27 percent for working people who want to take a holiday in the UK," she said.
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