Ministers have opened a 12‑week consultation on a new devolved power for mayors in England to apply a charge to overnight stays. The Ministry of Housing, Communities and Local Government confirmed publication on 25 November 2025, with responses due by 18 February 2026.
Under the proposals, mayors and local leaders could introduce a modest charge on overnight visitors staying in hotels, holiday lets, bed and breakfasts and guesthouses. Adoption would rest with local decision‑makers rather than being imposed centrally.
Officials state that any revenue would be used for transport, infrastructure and the visitor economy. The Department adds that schemes would not require separate central government sign‑off, and sets out initial exemptions for emergency accommodation, homeless shelters and registered Gypsy and Traveller sites used as primary residences; mayors could add further local exemptions.
The announcement comes on the eve of the Budget on Wednesday 26 November and alongside wider devolution measures. The English Devolution and Community Empowerment Bill is scheduled for report stage and third reading in the Commons on 24–25 November. The press notice does not specify the legislative vehicle; based on timing, the bill could carry enabling provisions subject to amendment and passage.
England attracts over 130 million overnight visits each year. The Department cites evidence that reasonable fees have minimal impact on visitor numbers and says a levy would allow local projects that improve communities and the visitor experience to proceed without returning to Whitehall for approval.
Devolved comparators provide a reference point. In Scotland, legislation enables councils to introduce a levy after an 18‑month implementation period; Edinburgh’s draft scheme targets a start around 24 July 2026, subject to final council decisions. In Wales, the Visitor Accommodation (Register and Levy) Act received Royal Assent on 18 September 2025, with the earliest start in 2027 and indicative rates of 75p for hostels and campsites and £1.30 for other accommodation.
Ministers highlight potential uses if local leaders opt in: in London, upgrades to busy streets and support for culture; in Liverpool, backing for major events, including UEFA EURO 2028 fixtures at Everton Stadium. The specific design, rate and spend priorities would be determined locally.
For accommodation providers, the operational questions will be level, base and collection. England’s arrangements will be set through legislation and guidance after the consultation. In Wales, as an example of a comparable model, providers will remit the levy to the Welsh Revenue Authority once schemes go live from 2027 at the earliest.
Early reaction has diverged. London Councils welcomed the principle and called for a fair share of receipts to be retained by boroughs experiencing high visitor volumes. Industry voices reported today warned a levy could reduce the UK’s competitiveness and weigh on hotel investment.
Next steps are immediate. With the Budget this week and the devolution bill advancing, local authorities, mayoral offices, accommodation platforms and tourism businesses have a short window to submit evidence on rates, exemptions and reporting before decisions are finalised after the consultation period.