ENGLISH MAYORS TO GET POWER TO LEVY TOURIST TAX ON ACCOMMODATION

The government plans to grant English mayors the power to introduce an overnight visitor levy on tourists, according to an announcement due later today. Local leaders would be permitted to set an uncapped levy as a percentage of accommodation costs rather than a flat fee. The Housing Secretary Angela Rayner will meet mayors virtually at No 10 North on Thursday afternoon to discuss further details. Local leaders would determine how revenue raised from the levy should be reinvested in their areas.

The proposal was first raised under former Prime Minister Sir Keir Starmer in November and mirrors schemes already operating in Scotland and European capitals. A government source stated that "it will be up to local leaders and local voters" in England "to decide what is right for their area". Ministers believe the percentage-based structure protects budget holidays by avoiding a fixed charge. The scheme means accommodation costs could increase if local leaders choose to implement the tax.

UKHospitality has opposed the plans, with chief executive Allen Simpson warning they "are not going to be painless". The trade body claimed the levy would add approximately £100 to £120 on average to the cost of a family holiday in England. Hospitality leaders have stated that "jobs are now at risk" because of the proposals and that families holidaying in England would face higher costs. The government maintains that the lack of a fixed fee structure protects budget-conscious holidaymakers.