Government AffairsUK government plans to give regional mayors powers to impose overnight accommodation levies, raising concern over the cost of domestic holidays.

Why a holiday in England will likely cost more

By Travel Weekly Asia

Sep 11, 2026

The proposed charge would apply to hotels, B&Bs and caravan parks. Photo Credit: Pexels/Joaquin Carfagna

England is set to introduce a tourist tax on domestic and international visitors, a move that has angered the country’s hospitality sector.

The UK government plans to give regional mayors the power to impose a levy on overnight stays, calculated as a percentage of accommodation costs. The charge would apply to hotels, B&Bs, caravan parks and other paid accommodation.

While the levy itself would not be nationally mandated, Labour’s regional mayors have indicated that they would cap any charge at 5% of the cost of a stay. The government is expected to introduce legislation in due course, with mayors likely to outline their plans by early 2028.

Not every English region is expected to adopt the levy. Mayors would be able to decide whether to introduce it in their area, as well as how revenue should be spent.

The government argues that the funds could support local services and investment in visitor economies, while the percentage-based approach is intended to protect lower-cost holidays from disproportionately high flat fees.

Industry pushback

UKHospitality has warned that the levy could make domestic breaks more expensive and place jobs at risk, particularly in destinations that rely heavily on tourism.

The trade body has also raised concerns over an uncapped system, although Labour mayors have publicly committed to keeping their own levies below 5%.

Levies across the UK

Tourist taxes are already commonplace in European cities such as Amsterdam and Rome, where overnight charges help fund local services and tourism infrastructure.

In Scotland, local authorities can introduce a visitor levy on overnight accommodation. Edinburgh is set to apply a 5% charge from 25 January 2027, while Aberdeen has approved a 7% levy, subject to implementation.

Last year, the Welsh government announced that it would allow councils to introduce a visitor levy from 1 April 2027. Its higher rate is £1.30 (US$1.76) per person, per night for accommodation including hotels, B&Bs, holiday lets and caravan parks, while campsites and shared hostel-style accommodation would be charged £0.75 per person, per night.