The Overnight Visitor Levy Bill, which allows mayors to introduce tourist taxes, was announced as part of the King’s Speech this week.
If the bill is passed this year, tourists in England could be charged a levy on overnight stays – similar to rules in Scotland and Wales, where responsibilities are devolved to local authorities.
It’s something you might have spotted in Paris, Barcelona or Amsterdam: an extra fee, added to your nightly accommodation bill. They are typically very small – in France, the amount starts at 50p per night.
The levies are typically collected by hotels or rental properties on behalf of a local authority, and are usually reinvested into the city’s resources.
Before any tourist tax comes into place in England, Edinburgh will become the first UK city to charge visitors for staying overnight under official law in July 2026.
Following on from Scotland, Wales will also start doing the same by 2027. And while England is only just wrapping up its consultation on mayor-imposed taxes, some legal loopholes have already allowed cities such as Manchester and Liverpool to charge you a small fee when you stay overnight.
We have compiled the latest information on visitor levies in the UK, such as what areas you can expect an extra charge, why authorities are imposing them and where your money goes once it’s collected.
What is a visitor levy? Is it different to a tourist tax?
The phrases “tourist tax” and “visitor levy” are often used interchangeably, but both refer to the same policy: a levy on the occupation of short-stay accommodation in a local authority area.
The term “visitor levy” is used more often by local authorities in the UK. The language can get confusing as using the term “tourist tax” sounds like it implies those travelling for business would not need to pay; however, levies usually extend to all types of visitors, with a few exceptions. While it will vary between local authorities, those who are exempt from paying levies could include children, those travelling for medical reasons or fleeing from domestic violence.
A visitor levy normally takes the form of a charge per occupied bed or room per night, taxed on short-term accommodation providers such as hotels.
The charge can be a flat rate for the entire duration, or a series of flat rates, for example, £2 per room per night. It can also be set as a percentage of the nightly fee.
England
On 13 May 2026, the Overnight Visitor Levy Bill was included in the King’s Speech. Briefing notes say the legislation will transfer power out of Westminster by devolving new revenue-raising powers to mayors and other local leaders.
After it was first announced in November 2025, a consultation was launched on how a new levy on overnight stays would look.
The bill aims to help places reinvest revenue into the local area to support economic growth, strengthen public services and improve visitor experience.
The government’s briefing notes also argue that mayors and local leaders in the UK are left far behind their international equivalents in their ability to raise revenue locally. The share of national taxes collected at the sub-national level in the UK is 5.8 per cent: just a fifth of the European Union average and the lowest of the G7 by far.
In France, the share is 20.4 per cent; in Japan, 36.0 per cent, and in the USA, 45.7 per cent.
However, some city councils, like the ones in Manchester and Liverpool, had already introduced a form of tourist tax via a legal workaround using an Accommodation Business Improvement District (ABID).
Who supports the England tourist tax?
From local councillors to members of parliament, many have long voiced their support for a tourist tax in England.
Mayor of London Sadiq Khan said: “Giving mayors the powers to raise a tourist levy is great news for London.
“The extra funding will directly support London’s economy, and help cement our reputation as a global tourism and business destination,” he said.
Mayor of West Yorkshire, Tracy Brabin, said, “Mayors have made a strong case for the introduction of this levy as the first step toward fiscal devolution, and we’re delighted the government has listened.
“By asking visitors to pay a small fee on overnight stays, we’ll be able to invest more into making our regions even better places to visit – driving tourism and growth, unlocking opportunities, and helping our businesses thrive. This is a further vote of confidence in devolution and shows the government is backing mayors to deliver our ambitions.”
In June 2025, several mayors from across the country supported a campaign led by Liverpool mayor Steve Rotheram. At the time, they said that England is “at risk of falling behind” as Scotland and Wales move ahead with their own tourist taxes.
In light of the King’s Speech, Mr Rotheram said: “Our visitor economy is worth more than £6 billion a year and supports over 55,000 local jobs. A modest levy is money that would stay local and be reinvested in the things that make our region stand out.”
Mayor of Greater Manchester Andy Burnham also commented in November 2025, saying: “The levy will allow us to invest in the infrastructure these visitors need, like keeping our streets clean and enhancing our public transport system through later running buses and trams.”
Who is against tourist taxes?
Not everyone is excited by the prospect. Trade body UKHospitality said that the introduction of a tourist tax is a “shocking U-turn” by the government. As recently as September 2025, Minister for Business and Trade Chris Bryant said that there were “no plans” to introduce such a levy.
Allen Simpson, Chief Executive of UKHospitality, said following the King’s Speech: “The Government has confirmed it will legislate to make family holidays more expensive during a cost-of-living crisis.
“It’s a shocking U-turn after it told both the House of Commons and UKHospitality that it would not implement a holiday tax.”
Travel and tour association Abta has also raised concerns. The company’s director of public affairs, Luke Petherbridge, said that British travel and tourism “is already uncompetitive on cost grounds” and that “a visitor levy further adds to this”.
However, Abta said it will engage with mayors to express how vital that any new levies are reinvested into tourism and local communities, as they admit this could “deliver visible improvements for visitors, tourism businesses, and residents”.
The Professional Association of Self-Caterers (PASC UK) has also raised concerns, saying parliament should assess the impact further.
What is an Accommodation Business Improvement District?
In a Business Improvement District (BID), local enterprises pay into a fund for community projects that will, in turn, benefit them. The Accommodation Business Improvement District (ABID) is a version of this for hotels.
BIDS are independent not-for-profits, so the levy isn’t established or run by local authorities. The levy in both Liverpool and Manchester was put in place by the ABIDs, which are run by boards.
What are the current tourist tax rules in Liverpool?
As of June 2025, guests staying in around 100 Liverpool ABID hotels pay a £2 per night fee. The group says this will bring in £9.2m over two years, of which £6.7m will go towards supporting the city’s visitor economy.
Authorities do not think that Liverpool is suffering from overtourism, but the ABID levy is part of a strategy to spread out the flow of visitors.
Bill Addy, CEO of Liverpool BID Company, explained that it is currently focused on attracting business events mid-week to support quieter times.
“This is because our corporate base isn’t as strong as it could be. The board of hoteliers is an invaluable source of understanding for both how the city ebbs and flows and its busiest times and trends,” he told The Independent.
Mr Addy also stated that Liverpool’s hospitality businesses “are in crisis”, so the BID is trying to reinvest in the tourist experience in the city – encouraging return visits.
After the BID levy was introduced this summer, Mr Addy said Liverpool has had the best July on record in terms of room bookings.
“That speaks for itself. Tourists are used to city charges; ours is a minimal, fixed fee that is easily communicated and absorbed. We are not using it to deter tourists, so that’s important to us.”
He also argued that local ABIDs are preferable to a nationwide law. “We believe a model where the private sector can invest directly into visitor economy support is the better model.”
“Business Improvement Districts have to be accountable and transparent, and it means we can share the details of investment. It also allows for a hyperlocal approach that is both flexible and reactive,” he said.
What are the tourist tax rules in Manchester?
Over in Manchester, guests staying in paid accommodation within the Manchester ABID zone have to pay an additional £1 per room, per night.
Manchester ABID said that the levy has been “warmly welcomed” by guests and accommodation providers alike, with funds generated from this levy being used to support bids for awards ceremonies such as the Brit Awards and NBA sports events.
Scotland
The Visitor Levy (Scotland) Act became law in September 2024. This allows councils in Scotland to tax overnight accommodation if they wish to do so, and spend the money raised on local facilities and services used by visitors.
They must consult local businesses, communities and tourism organisations before agreeing to introduce the levy in their area.
Currently, no areas in Scotland have a visitor levy in place. In January 2025, Edinburgh became the first area to vote to add a five per cent surcharge on visitors’ overnight stays, but this won’t come into force until July 2026.
Businesses will need to apply the levy to any advance bookings made after 1 October 2025, for stays on or after 24 July 2026.
Glasgow will also have a five per cent overnight accommodation levy from 25 January 2027, while Aberdeen will have a slightly higher levy of seven per cent on overnight stays from 1 April 2027.
Wales
The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill was passed by the Senedd in July 2025, giving power to councils in Wales to introduce a tax on overnight stays.
Like Scotland, no destinations in Wales currently have a tourist tax in place on overnight accommodation, as the earliest a council could implement one is April 2027.
The money raised from levies in Wales will be used to maintain local facilities and infrastructure to improve tourism. Councils must consult residents and businesses if they choose to introduce a fee.
The visitor levy will be charged per person per night and will be collected by the accommodation provider. For campsite pitches, hostels and dorms, the cost will be 75p per person, per night, while all other types of visitor accommodation will have a £1.30 charge per person per night.
You will not pay the visitor levy in Wales if you are in emergency or temporary housing arranged by the council, or are under 18 and staying at a campsite, hostel or dorm.
Northern Ireland
A spokesperson from Northern Ireland’s Department for the Economy said: “No plans are under consideration to introduce a tourism levy in the north.”
Read more: Labour announces ‘tourist tax’ to boost England’s cities
