London, UK – November 25, 2025 – Mayors across England are set to be granted new powers to introduce a Tourist Tax England on overnight stays, a move aimed at generating vital funding for “iconic events” and “world-class culture” within their cities and regions. The announcement, made by the government ahead of the upcoming Autumn Budget, signals a significant shift in how tourism revenue will be managed and reinvested locally through a new England tourist tax. This new tourism policy could significantly impact local funding.
This proposed measure will allow elected mayors to decide whether to implement a “modest charge” on visitors, with the tourism revenue earmarked for local businesses, entertainment, and cultural offerings. Cities like Milan and Barcelona in Europe, as well as New York, already operate similar visitor levies, and Edinburgh in Scotland has also moved to introduce one. The aim is to put English cities on an equal footing with other major global tourist destinations, leveraging a visitor levy England style.
Tourist Tax England: Funding for Culture and Events
Mayor of London, Sadiq Khan, has welcomed the proposal, stating it is “great news for London.” He believes the additional funding from the Tourist Tax England will “directly support London’s economy” and help solidify its status as a global tourism and business destination. Liverpool City Region Mayor, Steve Rotheram, who has campaigned for these powers for years, expressed that cities have long been expected to compete globally “without the basic tools that other places take for granted.” He emphasized that the money raised would “stay local and be reinvested in the things that make our region stand out,” including “world-class culture” and “iconic events.” This aligns with the broader goal of reinvesting tourism tax dollars to enhance visitor experiences and the quality of life for residents, creating a positive cycle for sustainable tourism development.
International Precedents and Domestic Support for Tourist Tax England
Cities like Milan and Barcelona already operate tourist taxes, with Milan, Rome, Florence, and Bologna leading a trend of increased tourism revenue collection across Europe in 2025. These taxes often fund sustainable urban development, infrastructure, and public services. In Barcelona, tourism taxes have helped fund cultural events, expand public transport, and support major sporting events like the America’s Cup, demonstrating how revenue can benefit both residents and visitors. The proposed Tourist Tax England would apply to accommodation providers including hotels, holiday lets, bed and breakfasts, and guesthouses, offering crucial local funding.
Several mayors have publicly supported the move. Manchester Mayor, Andy Burnham, views it as a measure that will help sustain “good growth” and allow investment in “the infrastructure these visitors need.” North East Mayor, Kim McGuinness, anticipates a “new era” of events for her region, with even a small levy transforming the welcome visitors receive. The underlying principle is that those who enjoy the region’s offerings play a small part in sustaining them through the England tourist tax.
How the Tourist Tax England Will Work and Potential Impact
The government’s proposals suggest a “modest charge” on overnight trips. While specific details are subject to consultation, which is open until February 18, 2026, the Tourist Tax England is expected to apply to all visitors, including UK citizens and foreign tourists. Research cited by the Ministry of Housing, Communities and Local Government indicates that “reasonable” tourist taxes have a “minimal impact on visitor numbers.” The implementation is expected to occur from July next year, with a potential rate of around five per cent of accommodation costs, capped at five nights. For London, projections suggest a levy could raise up to £240 million annually in vital tourism revenue.
However, the plans have faced some criticism. UKHospitality has voiced concerns that the tax could be passed on to consumers, increase inflation, and make English cities less competitive compared to rival European destinations. Some Conservative mayors, like Ben Houchen of Teesside, have stated they would not implement the tax if given the power, citing concerns about placing additional burdens on working people and impacting the effectiveness of their local funding strategies.
Despite these reservations, the government sees this as an opportunity to align England with international practices and boost local economies through dedicated funding for cultural and event-based tourism. The news highlights a trending global approach to destination funding, aiming to ensure that the economic benefits of tourism are more directly channeled back into the communities that host them, thereby enriching the visitor experience and supporting local society and its vibrant culture through this new Tourist Tax England. The government is encouraging input through a public consultation to ensure the effective implementation of this new tourism policy.
