Tourism Levy Announcements

What we know so far:
The levy would apply to all overnight stays, hotels, holiday lets, and B&Bs, per night, in any area that chooses to introduce it
No confirmed cap on the rate, and it's unclear whether the number of nights it applies to (Edinburgh caps at five) will be limited either
Revenue is intended to support local authority finances
Percentage model not fixed rate
Implementation end of 2027
MHCLG today published its response to the visitor levy consultation, confirming mayors and other strategic authorities (both mayoral and “foundation” authorities without a mayor) will get the power to introduce a levy on overnight stays, set as a percentage of accommodation cost. There is no national cap on the rate or on the number of nights it can apply to — a bigger power than Edinburgh's existing scheme (capped at 5%, five nights). Campsites, temporary accommodation and refuges are exempted nationally; other exemptions are for local authorities to decide. A bill will follow in due course; local leaders are expected to set out spending plans by early 2028, with further detail on fiscal devolution due at the Budget.
Source: GOV.UK — Local leaders handed powers to drive investment in communities, 10 September 2026




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