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