Jim McMahon

Last Thursday, the Government published their response to the consultation on the overnight visitor levy. The “rewiring the state” Cabinet announcement committed to “delivering good growth in every part of the United Kingdom”. The visitor levy supports that ambition by empowering local leaders to deliver transformational investment, building the reputation of areas across England as world-leading destinations. Local leaders will be able to choose to introduce the levy as a way to raise money to support growth in their region, including in the visitor economy. Visitor levies are common in Europe and the rest of the world. All over the G7, countries already have some form of tourism or overnight accommodation levy in place. The Government have decided that both foundation strategic authorities and mayoral strategic authorities will be empowered to raise a levy to support growth in their areas. This approach means that places without a mayor will also be able to invest in their region, making them better places for residents and businesses, as well as for the people who visit and enjoy those areas. The levy will be set as a percentage of accommodation costs. That means that low-cost stays remain low cost, while those who can afford it will be able to contribute more to the places that they visit. Strategic authorities will be required to consult before introducing a visitor levy. This will inform their decision on whether to introduce the levy, how much it would cost and how revenues would then be spent. We expect that local leaders will be able to set out plans for how revenues will be invested by early 2028, and to introduce a levy before the end of this Parliament. The Government have engaged with the tourism and hospitality sectors throughout the consultation, and we will continue to do so as the legislation is developed. The changes that the Labour Government are introducing will mean that more money will be invested in our high streets and public transport systems, and England’s tourism hotspots will directly benefit from visitor footfall to improve the area for people living there too.