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England mayors to gain power to introduce overnight visitor levy
The UK government is advancing plans to grant regional mayors in England the authority to introduce an Overnight Visitor Levy. This proposed tax would apply to various types of accommodation, including hotels, B&Bs, and short-term rentals like Airbnb.
Unlike fixed nightly fees, the levy is intended to be calculated as a percentage of the total accommodation cost. This approach aims to protect budget-conscious travelers. While the government has not set a national cap on the levy, ten Labour-controlled mayors, including London Mayor Sadiq Khan, have committed to keeping their rates below 5%.
Revenue generated from the levy is intended to remain within the respective regions to fund local infrastructure, transport, and public services. Local leaders are expected to present detailed investment plans by March 2028.
However, the proposal has faced significant opposition from the hospitality sector. UKHospitality and other industry leaders warn that an uncapped levy could cause severe economic damage. Estimates from Oxford Economics suggest that a 5% levy could lead to 33,000 job losses, a £1.8 billion drop in tourism spending, and 11.9 million fewer overnight stays by 2030.
Entities
Andy Burnham · Angela Rayner · England · Sadiq Khan · UKHospitality · United Kingdom Government
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 9 SOURCES] Industry body UKHospitality warns a 5% levy could lead to 33,000 job losses and significant economic damage. internewscast.com · ca.news.yahoo.com · www.theguardian.com · www.eliberico.com · de.euronews.com · +3 more
- [● 20 SOURCES] The levy will be calculated as a percentage of accommodation costs rather than a fixed nightly fee. www.eliberico.com · n1info.si · acikgazete.com · thevaultznews.com · wochentlich.de · +14 more
- [● 10 SOURCES] Ten Labour-controlled regional mayors have committed to keeping the tax rate below 5%. www.eliberico.com · wochentlich.de · www.dattelner-morgenpost.de · www.waltroper-zeitung.de · www.standard.co.uk · +5 more
- [● 10 SOURCES] Revenue from the levy will be kept within the regions to fund local infrastructure, transport, and public services. n1info.si · thevaultznews.com · wochentlich.de · www.dattelner-morgenpost.de · pa.media · +5 more
- [● 3 SOURCES] Mayors are expected to present detailed plans for the use of the revenue by March 2028. thevaultznews.com · pa.media · boutiquehotelnews.com
- [● 20 SOURCES] The UK government plans to grant English mayors the power to introduce an Overnight Visitor Levy. www.eliberico.com · n1info.si · acikgazete.com · thevaultznews.com · wochentlich.de · +14 more
- [○ 1 SOURCE] Oxford Economics estimates the policy would cut Treasury tax receipts by about £688million. internewscast.com
- [○ 1 SOURCE] Oxford Economics forecasts a £101million fall in direct investment, 11.9 million fewer overnight stays, 33,000 lost jobs, and a £1.8 billion drop in tourism spending. internewscast.com