England mayors to receive power to implement tourist tax

The British government has granted regional mayors in England the authority to implement an overnight visitor levy. Under the proposed Overnight Visitor Levy Bill, local authorities can charge a percentage of total accommodation costs on hotels, bed and breakfasts, Airbnbs, and campsites. While there is no fixed upper limit, it is expected that most mayors will keep the charge below 5%.

The plan has faced significant opposition from the hospitality sector. Industry representatives and groups like UKHospitality warn that the tax could deter visitors and place undue pressure on businesses already struggling with high energy, insurance, and food costs. Some models suggest a 5% tax could result in millions of fewer overnight stays and a substantial drop in gross visitor spending.

In a separate political development, Conservative Party leader Kemi Badenoch is reportedly considering the abolition of inheritance tax if the party wins the next election. This potential policy shift would represent a major tax-cutting commitment, though critics note it could create a significant gap in public finances.