The UK government is granting mayors in England the power to introduce a "tourist tax" on overnight stays, allowing local leaders to charge an uncapped levy calculated as a percentage of accommodation costs rather than a flat fee. Ministers say this will let regions reinvest in high streets, transport and local attractions, but hospitality bosses have warned it risks jobs and could add significantly to family holiday costs, setting up a clash between devolved fundraising powers and industry concerns.

Local Government Secretary Angela Rayner said the levy would let mayors "raise and reinvest funding where it's needed most," with low-cost accommodation guaranteed the lowest rate and exemptions possible for things like campsites, though whole areas cannot be exempted. UKHospitality's Allen Simpson estimated the tax could add £100 to £120 to an average family holiday, while political reaction split along party lines, with Conservatives calling it a "double whammy" alongside VAT and Reform UK vowing its mayors won't introduce it. Several Labour mayors, including in Liverpool, West Yorkshire, London and the West of England, have signalled support, with Liverpool's Steve Rotheram suggesting the levy could raise up to £18m a year; a bill will be brought to Parliament "in due course."