The UK government is considering granting local councils the power to impose a tourist levy on hotels and Bed and Breakfast (BnB) stays. Under the proposed plan, councils would have the authority to charge staycation visitors between £1 and £2 per person, per night. This initiative, spearheaded by Deputy Prime Minister Angela Rayner and her Ministry of Housing, Communities, and Local Government, reflects growing pressures from local leaders to address the impact of tourism on communities.
The anticipated measure, detailed in the government’s upcoming devolution white paper, would be part of a broader effort to allow regional authorities more financial flexibility and autonomy. Proponents argue that this tax could help fund essential services, infrastructure improvements, and environmental conservation in areas heavily frequented by tourists. Although local councils in England currently lack the legal authority to enforce a tourism tax, some regions have managed to implement similar levies through creative legal solutions.
This move would bring England more in line with Scotland, where tourism tax powers were introduced earlier this year. Wales, too, is planning a similar initiative. Devolved mayors and other regional leaders have reportedly lobbied hard for this change, viewing it as a necessary step to bolster local budgets and improve community resources. According to one official involved in the discussions, the proposal is less about “if” and more about “when” such a tax will be implemented.
While the notion of a tourist tax may sound like a deterrent for some, it’s generally not designed to discourage tourism. Instead, the funds raised are intended to support areas that experience high visitor traffic, which can place a strain on public facilities, roads, and environmental resources. Overcrowded tourist destinations might see a slight reduction in numbers as a result, but any decline would likely be minor and, in some cases, even welcomed.
Manchester has already set a precedent in England, introducing a £1 per night visitor levy in 2023 to bolster its marketing efforts and attract more tourists. The funds collected are reinvested into city events and promotional campaigns. Similarly, in Bournemouth, local officials have expressed interest in a tourism tax, with plans to reinvest the proceeds into events like the town’s popular air show and initiatives aimed at enhancing its appeal as a tourist destination.
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For some tourism hotspots, the ability to raise funds directly from visitors is seen as essential for sustaining the quality of life for residents and maintaining a positive experience for future tourists. Over time, such funds could prove crucial in supporting public services, maintaining infrastructure, and protecting natural landscapes that are vulnerable to the wear and tear of high tourist volumes.
While the plan has yet to be formally announced, its inclusion in the government’s upcoming white paper suggests it’s on the horizon. When asked for comment, the Ministry of Housing, Communities, and Local Government did not deny the possibility of this new power for councils, signaling that the move could soon be reality.
Critics, however, argue that the addition of such levies could burden travelers and deter staycations within England. Yet, proponents contend that a nominal fee of £1 to £2 per night is unlikely to dissuade most travelers, especially given the potential benefits for local economies and infrastructure. They point out that similar levies are commonplace in international tourist destinations, where they are widely accepted by travelers as part of their overall experience.
As the government explores this potential new avenue of revenue, the outcome of the white paper could mark a significant shift in how England funds its local communities amid the surge in domestic tourism. Whether welcomed by all or met with some resistance, the prospect of a tourist tax represents a pivotal moment for local governance, setting the stage for a more self-sustained approach to managing tourism’s impact on England’s cherished destinations.
