Mayors and other strategic-authority leaders in England are set to receive powers to introduce an overnight visitor levy, following the government’s response to a national consultation. No nationwide hotel tax has started: legislation, local decisions and local consultation still have to happen.
What has the government decided?
The government announced on 10 September 2026 that Mayoral Strategic Authorities and Foundation Strategic Authorities will be able to choose whether to introduce a charge on overnight visitor accommodation. Revenue would remain available for locally chosen priorities connected with places and the visitor economy.
The policy announcement followed a consultation held between November 2025 and February 2026. The government says it will introduce a bill “in due course” to create the power.
How would the visitor levy be calculated?
The national framework will require a percentage charge based on the cost of accommodation rather than a fixed nightly amount. That design means a cheaper room produces a smaller levy than an expensive one, although the rate itself has not yet been set for any area.
Local leaders would decide whether to use the power and how revenue should be spent. They would have to consult residents, accommodation businesses and other local stakeholders before implementation.
Which stays could be exempt?
Temporary accommodation, shelters and refuges would sit outside the levy. Strategic authorities would also have flexibility to create local exemptions, with campsites given as one possible example.
Hotels and other accommodation providers would be responsible for paying the levy to the relevant authority. The administrative and compliance framework still needs detailed development, so businesses do not yet have final collection, reporting or invoice rules.
When could visitors actually pay it?
There is no immediate start date. Parliament must pass the required legislation, and each participating authority must design and consult on a local scheme. The government expects mayors and Foundation Strategic Authority leaders to publish spending plans by early 2028.
The published consultation outcome summarises evidence from councils, businesses, visitor-economy groups and the public. It also makes clear that implementation will be local rather than an identical charge automatically applied across England.
Why does the policy matter to tourism businesses?
For accommodation operators, the eventual rate and administration will determine the practical cost. Questions include how booking platforms display the levy, how refunds and cancellations are handled, which stays qualify and how authorities coordinate compliance.
For local leaders, the attraction is a revenue stream linked to visitor activity that could support transport, public spaces, events and attractions. Those are policy arguments, not guaranteed outcomes; the effect will depend on the rate, local demand and how money is used.
Reporting basis: Ferdiox reviewed the Ministry of Housing, Communities and Local Government announcement and consultation outcome on 15 September 2026. This article describes a planned power and not a tax currently payable.
Illustrative image. Photo by Taylor Beach on Unsplash