STORY
Mayors and other strategic authority leaders in England will be given the power to introduce a levy on stays in hotels, bed and breakfasts and short term rented accommodation. The charge will be optional and calculated as a percentage of the accommodation price, meaning that people choosing cheaper places to stay would pay less.
The money will be retained locally and could be invested in public transport, high streets, cultural attractions, events and other services used by visitors and residents. The Government said temporary accommodation, shelters and refuges would be exempt, while local leaders could create additional exemptions for places such as campsites. Accommodation providers will be responsible for paying the levy to the relevant strategic authority.
The Government intends to introduce legislation establishing the scheme, with local leaders expected to publish spending plans by early 2028. The proposal had been welcomed by mayors seeking additional investment but opposed by parts of the hospitality industry, which argue that higher accommodation costs could discourage visitors. No levy has yet been introduced under the new powers, and its rate and local application will depend upon decisions taken after the legislation is approved.