# English regional overnight visitor levy proposal > Live situation record from CLSTR: https://clstr.news/situations/english-regional-overnight-visitor-levy-proposal > Updated: 2026-09-16T14:49:58.000Z. Sources: 38. Developments: 4. The UK government is moving forward with plans to grant 14 regional mayors in England the authority to implement an overnight visitor levy. This tax, calculated as a percentage of accommodation costs for hotels, B&Bs, and short-term rentals, is intended to fund local infrastructure, transport, and public services. Labour-led mayors, including Sadiq Khan of London and Andy Burnham of Greater Manchester, have proposed a 5% cap on the levy, describing it as a “reasonable ceiling” for local investment. In London, Mayor Khan confirmed the proposal could generate between £250 million and £350 million annually, with potential funds directed toward improving the city’s public transport network. The proposal has met resistance from the hospitality and business sectors. UKHospitality Chief Executive Allen Simpson has challenged mayors to support reducing the standard hospitality VAT from 20% to 10% as a condition for the new tax. Additionally, leaders from UKHospitality and BusinessLDN have expressed concerns regarding London’s competitiveness. Regional debates regarding the levy continue to evolve. In Cornwall, the council is considering the measure as part of its devolution settlement negotiations, noting that the area receives approximately 4.2 million overnight stays annually. Conversely, Tees Valley Mayor Ben Houchen has indicated he will not exercise the right to apply the levy, stating that growth should not be pursued through “increased taxation of citizens.” Modeling from the Tax Policy Associates thinktank suggests that while a tax of up to 5 per cent could raise significant revenue, it might also result in the loss of millions of room-nights and substantial overall visitor spending. ## Timeline ### 2026-09-16: UK regions debate implementation of overnight visitor levy UK local authorities are weighing the introduction of an overnight visitor levy, facing criticism from hospitality groups over potential impacts on tourism spending and domestic travel. 2 sources. https://clstr.news/cluster/uk-regions-debate-implementation-of-overnight-visitor-levy ### 2026-09-14: London proposes tourism levy capped at 5% for accommodation London Mayor Sadiq Khan has proposed a tourism levy capped at 5% of accommodation costs to fund city improvements, sparking debate between government officials and hospitality industry leaders. 2 sources. https://clstr.news/cluster/london-proposes-tourism-levy-capped-at-5-for-accommodation ### 2026-09-14: English mayors propose 5% cap on new overnight visitor levy English regional mayors are preparing to implement a new overnight visitor levy, with many proposing a 5% cap, while UKHospitality calls for a reduction in hospitality VAT to offset the cost. 3 sources. https://clstr.news/cluster/english-mayors-propose-5-cap-on-new-overnight-visitor-levy ### 2026-09-10: England mayors to gain power to introduce overnight visitor levy England's government plans to allow regional mayors to introduce an Overnight Visitor Levy on accommodations. Mayors may set the rate as a percentage of stay costs, with ten Labour mayors pledging to stay below 31 sources. https://clstr.news/cluster/england-mayors-to-gain-power-to-introduce-tourist-tax --- Cite as: English regional overnight visitor levy proposal. CLSTR, https://clstr.news/situations/english-regional-overnight-visitor-levy-proposal