England’s mayors will have the power to introduce a tourism tax

The idea was first floated under former prime minister Sir Keir Starmer in November and is similar to schemes in Scotland and European countries.

Two cities in England already have their own voluntary schemes: a £1 per room per night city fee in Manchester, introduced when Burnham was the region’s mayor, and a £2 per night fee in Liverpool. These are business schemes in which hotels choose to pool the money collected to support local tourism.

Until now, regional mayors have not had the power to levy such fees themselves, but they argue it is necessary to stimulate economic growth.

Steve Rotheram, mayor of Liverpool City Region and a close ally of Burnham, said the “modest levy” could reach £18 million a year and be reinvested in “events, culture, experiences and infrastructure” that attract visitors.

Labor mayors of West Yorkshire, London and the West of England also signaled on Thursday they would introduce the tax.

South Yorkshire Labor mayor Oliver Coppard welcomed the move but told BBC Radio Sheffield that Labor mayors would consult industry leaders before introducing it. He said the funds could be spent on street cleaning and night buses.

David Skyte, the Labor mayor of York and North Yorkshire, said the money raised from the levy would help improve town centers and invest in public services.

However, he added: “No decision will be made without full public consultation and greater engagement with the hospitality and tourism sector.”

London Mayor Sir Sadiq Khan called for the tax to be introduced as soon as possible, adding that the capital has the right to use the same levy as other cities around the world. It is understood that he supports a maximum levy of 5%.

John Chappell, who runs five caravan parks in Skegness, Lincolnshire, told BBC Your Voice that many English holiday resorts already find it difficult for visitors on a budget to travel by car.

He said the extra costs would “kill the industry.”

“Tourists are the saviors of our resorts, not demons, and ill-conceived ideas like this show how out of touch with reality politicians are,” he added.

Taxes are common across Europe and the rest of the world, with New York, Amsterdam and Rome charging per night for stays to fund local services. However, in several European cities they are limited.

In Scotland, local authorities may charge visitors for overnight stays. In Edinburgh, the rate is 5% for those staying overnight in hotels, bed and breakfasts and self-catering accommodation, up to a maximum of five nights.

The response to this was mixed, with some praising the extra investment, but Scottish Ballet responded by cutting performances while criticizing the “unsustainable economics of Edinburgh touring”.

In Wales, a capped charge of £1.30 per person per night is due to be introduced in April next year, but local authorities will have to decide whether to introduce it.