The UK government has announced that mayors across England will be empowered to introduce a tourist tax, a significant decision revealed on Tuesday, November 25, just a day before the national budget. This move follows years of persistent lobbying by local leaders, including Greater Manchester Mayor Andy Burnham and his colleagues, who have advocated for such a levy to help fund essential public transport and other local services.

If local mayors choose to implement this measure, it will involve a 'modest charge' levied on overnight stays. This new levy would apply to visitors staying at a wide range of accommodation providers, including hotels, holiday lets, bed and breakfasts, and guesthouses. According to the Ministry of Housing, Communities and Local Government (MHCLG), the money raised through this charge could then be utilized to fund local projects and enhance tourists’ experiences. This approach could potentially help attract more visitors without needing specific approval from central government. Research also suggests that reasonable fees have minimal impact on overall visitor numbers.

Greater Manchester already operates a similar, albeit voluntary, initiative in its city centre. Since April 2023, visitors staying in Manchester city centre have paid a £1-per-night ‘city visitor charge’, which is dedicated to funding extra street cleaning and other services. Although this fee is voluntary, guests have to actively opt-out of paying, resulting in most contributing, with an impressive £2.8 million collected in its first year. Mayor Andy Burnham has previously stated his desire for a compulsory tourist tax to be in place before Manchester hosts matches during the Euro 2028 competition, arguing that extra transport infrastructure will be necessary during such major events.

Powers to introduce a tourist tax are not new to the UK; similar provisions already exist in Scotland and Wales. For instance, Edinburgh is set to begin charging a 5 percent levy on anyone booking a hotel, B&B, or holiday let starting from next July, while Welsh cities have the option to charge a flat rate per room per night. It remains to be seen how the charges would be structured for tourists in Greater Manchester and the rest of England if mayors decide to introduce them.

Local Government Secretary Steve Reed welcomed the announcement, stating, “Tourists travel from near and far to visit England’s brilliant cities and regions. We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.” Responding to the news, Greater Manchester Mayor Andy Burnham expressed his delight: "It’s great news that the Government is committing to giving regional mayors the powers to introduce a visitor levy – a measure we have long called for." He emphasized Greater Manchester's thriving visitor economy, which attracts nearly two million people annually, contributing about £9 billion to the economy and supporting over 100,000 jobs. Burnham noted that the levy would allow investment in crucial infrastructure such as keeping streets clean and enhancing the public transport system with later running buses and trams, aiming to ensure every visitor experience is positive and memorable.

A public consultation detailing the specifics of this new measure is scheduled to run until February 18.