Local leaders are a step closer to getting new powers to invest more in high streets, cultural sites and other attractions that make communities great places to live, work and visit.
\n\nThis Visitor Levy Bill, introduced in the House of Commons today, marks the most significant step in making fiscal devolution a reality, giving mayors and leaders who know their areas best the ability to introduce a small fee on overnight stays. Money raised through the levy will stay in the local area, giving communities investment in the places and services used by visitors and residents.
\n\nMayors who choose to introduce a levy will be able to invest in what makes their regions special and improve the visitor experience from better high streets to public spaces – including public toilets and parks, cultural events and security and destination promotion. Money raised from visitors will stay in the area, helping attract more visitors, support local businesses and improve places for the people who live there too.
\n\nBut the government will continue to protect lower cost family breaks by requiring the levy to be charged as a percentage rate of the cost of accommodation, rather than as a flat fee, meaning those choosing cheaper accommodation will pay less. Ten mayors have also committed that any levy introduced in their areas would be no higher than 5%, providing certainty for visitors and businesses while preserving local choice.
\n\nThis piece of legislation builds on the significant commitment made at the Budget to drive good growth in every postcode, including through the government’s high streets strategy and wider plans to rewire the state, and shift power from Whitehall back to local communities.
\n\n\n\n\nMillions of people visit our wonderful towns and cities each year, and it’s right that our communities should be able to feel the benefit of that footfall.
\n\nEvery pound raised through these levies will stay in the local area. Whether that’s better transport, thriving high streets, or more attractions that keep visitors coming back.
\n\nThis is about giving mayors and local leaders the choice to invest back into what matters most to local people, while protecting lower-cost stays and making sure businesses have their say.
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\n\n\nIn Greater Manchester, we campaigned for an Overnight Visitor Levy to boost our region and give mayors the powers to raise additional funds through a modest levy on overnight stays. This would give us access to new funding that we can reinvest into our places to support our visitor economy, improve public services and drive good growth.
\n\nIn Manchester we pioneered a similar scheme in recent years which has been a resounding success. Our industry-led City Visitor Charge has shown that the model can work, generating millions of pounds that has been invested back into things like street cleaning and our work to attract major events, with widespread support from the hospitality sector.
\n\nThe Overnight Visitor Levy also represents a major moment for devolution and a further vote of confidence in the ability of mayors and local leaders to make decisions in the best interests of their places. It means we can attract more events, make our region more welcoming for tourists with cleaner streets and invest in long term projects like extending the tram network.
\n\nThe important thing now is that this is genuinely devolved. Any levy needs to work for our city region and be shaped with our councils, businesses and the local hospitality sector, with the money raised here being used for the benefit of people and businesses in Greater Manchester.
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\n\n\n\nWe’re home to historic towns and cities, two of the UK’s best National Parks and a coastline brimming with character.
\n\nThere’s something for everyone, and we welcome more than 40 million visitors every year. That’s why an Overnight Visitor Levy will be a total gamechanger for our county.
\n\nInvesting in York and North Yorkshire’s cities, towns and villages to make them a better place to visit, and to live in, is at the heart of why I will be introducing a Levy in our county.
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\n\n\nThis is something I’ve been calling for over many years, so I’m really pleased the government is taking forward plans to give Mayors the power to introduce a visitor levy locally.
\n\nOur visitor economy is already worth more than £6.8bn a year and supports more than 55,000 jobs across the Liverpool City Region. A modest levy on overnight stays could potentially raise up to £18m a year – money that would stay here and be reinvested directly into the events, culture, experiences and infrastructure that bring millions of visitors to our region.
\n\nVisitor levy mechanisms are often used in many great cities across the globe to improve the visitor offer and attract even more people to enjoy the experience. It would give us more money to support the things that make our visitor economy such a success, while helping our businesses and communities to benefit from its continued growth.
\n\nWe’ve shown time and again that local people know what our area needs far better than someone sitting behind a desk in Whitehall. I look forward to working with government as these powers are developed to make sure we get a system that is fair, workable and delivers the greatest possible benefit for our region.
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\n\n\n\nAfter years of lobbying, I wholeheartedly welcome this Bill, which would give London greater freedom to raise and invest new funding locally.
\n\nA modest levy could support our hugely successful visitor economy, creating benefits for Londoners, businesses and visitors alike, as well as helping to cement London’s reputation as one of the world’s leading destinations.
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\n\n\nWe have so much to be proud of across the East Midlands. I want more people to discover our fantastic towns and cities, our attractions and everything else our region has to offer. And I want the communities that welcome them to share in the benefits.
\n\nAn Overnight Visitor Levy would give us the chance to put more money back into the places that make our region what it is. That means supporting our attractions and independent businesses and helping our high streets and town centres attract even more people.
\n\nIt’s important that local people and businesses are part of this conversation from the start. There will be full consultation before a levy is introduced, giving people the opportunity to help shape how it works and where the money raised could make the biggest difference. Those who know their communities best should have a real say in how they benefit.
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\n\n\nBradford’s year as UK City of Culture proved what we can achieve when we invest in our visitor economy, which is why I’m supportive of these powers to ask those who stay overnight to make a small contribution to support our great region.
\n\nThis could be invested in bringing more gigs, performances, art and sport to our world-recognised venues, making our streets cleaner and safer, introducing night buses, and opening up more creative careers for our young people.
\n\nI’ll work closely with council leaders, businesses and our communities to ensure we get this right and build a brighter region that works for all.
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\n\n\nTens of millions of visitors spend billions of pounds in the West of England each year, brought here by amazing attractions like the Roman Baths, Clifton Suspension Bridge, Weston-super-Mare’s Grand Pier, and Bristol Zoo Project. And there’s much more on the way for our exciting region, particularly with the Aviva Arena opening in a few years’ time.
\n\nThe overnight visitor levy will allow us to invest more money raised here right back into the West, like other places already do around the world. That could well mean transport and tourism improvements, helping communities to see and feel a difference from devolution.
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\n\n\nThe North East has vibrant cities, stunning coast and countryside in Northumberland and Durham and a welcome that keeps people coming back. A levy here will mean we can compete with rival destinations which already raise money from visitors.
\n\nWe want to double the scale of our tourist economy and create thousands of new jobs as we do so. A small amount raised on each overnight stay means we can bring more major festivals to our region, support brilliant local events, improve the visitor experience and showcase the North East to the world.
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\n\n\nThe Government’s commitment to fiscal devolution will be a gamechanger, giving Mayors more freedom to invest in the sectors we know will deliver the economic growth and jobs our regions need. More than 100 million people come to the West Midlands every year to enjoy our rich heritage, exciting entertainment venues and world-class sport and cultural events, and that supports 150,000 local jobs. I want our visitor economy to be able to keep raising its game with new and even more exciting reasons for people to keep coming here.
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\n\n\nOVL is a big step in putting power in the right place, allowing people that know their communities best to take significant decisions about the future of that place. Whether we take the decision to implement the levy or not, we now - rightly - control that decision. That’s a radical step and one I’m pleased to see government taking in tandem with us as Mayors.
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\n\n\nThese powers could be transformative for the UK’s cultural venues. Museums and galleries are at the heart of this country’s offer to tourists, attracting millions of people to British towns and cities every year. Overnight visitor levies should provide vital support for these cultural spaces and help them deliver the countless benefits they bring to local communities.
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\n\n\nAt the Southbank Centre, we welcome over 11.6 million visitors a year and we’re in the top 6 visitor attractions in the UK. We see first-hand how culture is fuelling the wider visitor economy. Introducing the Visitor Levy Bill to Parliament brings England in line with other major international destinations and cities. Importantly, it offers a transformative opportunity to reinvest tourism revenues directly back into the cultural infrastructure that brings visitors here in the first place.
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\n\n\nManchester’s experience shows what can be achieved when the visitor economy works together and investment raised through overnight stays is put back into making the destination even stronger. Through the Manchester Accommodation Business Improvement District, city centre hotels and serviced apartments have already been supporting activity that attracts visitors, strengthens major events, and improves their experience of Manchester.
\n\nThe key for an Overnight Visitor Levy in Greater Manchester will be working closely with accommodation businesses to ensure any future levy is designed well, complements what is already working and delivers clear benefits for the businesses and places that generate it.
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\n\n\nAn overnight visitor levy is an important opportunity to rethink how we value and invest in the places people visit. Across Europe, cities have increasingly recognised that tourism generates not only economic opportunities but also demands on public spaces,\ninfrastructure, cultural provision and local services. The appeal of a city is never simply its hotels, attractions or events; it lies in the combination of its cultural life, public realm, creativity, heritage and everyday experiences. A modest contribution from overnight visitors can help destinations reinvest in the very assets and experiences that underpin their appeal. The challenge – and the opportunity for the UK – is to ensure that this investment is strategic, transparent and benefits both visitors and the communities who live there.
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\n\n\nGood policy starts with good evidence. Our research for the York and North Yorkshire Combined Authority demonstrates that an Overnight Visitor Levy is a credible option worthy of further consideration, with the potential to generate additional investment in the places, infrastructure and services that support our visitor economy.
\n\nTourism makes an enormous contribution to York and North Yorkshire, supporting businesses, employment and communities across the region. Any future levy must therefore be carefully designed, with meaningful engagement across the tourism and hospitality sector, alongside residents and other stakeholders.
\n\nUltimately, the success of any levy will depend not simply on the revenue it raises, but on how that revenue is invested, how decisions are made, and whether the benefits are felt by businesses, visitors and local communities alike.
\n\nOur research provides an important evidence base to inform that conversation and help ensure that any future decisions are made in the best interests of the region.
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\n\n\nToday’s announcement is a welcome step recognising the significant value that culture brings to our cities, making them vibrant places to live, work and visit, and enriching lives and communities.
\n\nEvery year, nearly 20 million visitors come to London, drawn by its unbeatable cultural offering including the world-class performing arts sector. The National Theatre is a registered charity and cultural beacon drawing global audiences and this new measure is a real opportunity to create a virtuous circle: reinvesting the proceeds of tourism in the cultural organisations, attractions and communities that make our capital such an extraordinary destination.
\n\nWe look forward to working with mayors across the country to ensure that any levy supports the long-term strength of their visitor and cultural economy, helping to sustain world-class arts and culture, create jobs and keep attracting visitors from across the UK and around the world.
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In Greater Manchester, a £1 per room per night charge through the Business Improvement District introduced in 2023 raised £2.8 million in its first year, which helped to increase street cleaning across the city.
\n\nThe Bill sets out new details today on how the levy will work, including who will be protected, how decisions will be made locally and how the rules will be enforced. The levy will only apply to the first 28 consecutive days of a stay, as longer stays count as long-term accommodation.
\n\nProtections will ensure occasional hosts, such as people who only rent out a spare room from time to time, will only pay the levy if they earn above a set amount. Local leaders and mayors will also be able to adjust this threshold to reflect their local tourism market.
\n\nThe new powers to introduce a levy will bring England in line with places like Germany, Italy, the United States, the Netherlands and Canada, and let communities make the most of the tens of million overnight stays in England every year.
\n\nThe government recognises the pressures facing hospitality businesses and has designed the levy so that decisions are taken locally, businesses must be consulted before a scheme is introduced and lower-cost stays face proportionately lower charges. Money raised will stay in the area and can be reinvested in the transport, high streets, public spaces, events and attractions that bring visitors in and support the local visitor economy.
\n\nThose wanting to introduce a levy will first need to publish a draft plan and an impact assessment setting out the expected impact on the local economy, businesses and visitors, alongside the proposed rate, threshold, exemptions and how the money will be spent. They will then be required to consult local people and businesses seek the necessary agreement within their Strategic Authority, consider their views before taking a final decision, publish the responses and issue final versions of both documents, so they are transparent and accountable.
\n\nCombined or Strategic Authority Members can suggest changes to the plan, which mayors will need to consider. In Foundation Strategic Authorities, a levy can only go ahead with unanimous support. Authorities with a levy will also need to publish an annual report on what they raise, what they spend and their future spending plans.
\n\nThe government has today confirmed national exemptions for student accommodation, care homes, children’s homes, and school boarding houses. Mayors and local leaders will also be able to set additional limited local exemptions, like for camping pitches.
\n\nTemporary accommodation, shelters and refuges will not be charged either, because they provide vital homes for vulnerable people rather than for visitors.
\n\nHotels and other accommodation providers will be responsible for accounting for and paying the levy and the government will give them guidance on how to register, pay and report. Strategic authorities will also help providers get it right, and it will be up to local leaders on how they use their enforcement powers proportionately. These are standard tax powers, in line with those that apply to national self-assessed taxes.
\n\nAll of this action builds on top of the measures announced at the Budget to back businesses, with all retail, hospitality and leisure properties seeing their business rates either frozen in real terms, reduced or cut to zero.
\n\nThe cross-government high street strategy, Hope On the High Street, also sets out the approach to backing town centres and helping high streets thrive again. This includes establishing a ‘high streets first’ principle which will encourage public bodies to consider the wider benefits their estate decisions can bring to high streets and local growth.
\n\nThe Secretary of State has strategic oversight of the Department’s business and policy including:
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