The UK government is set out plans on 10 September 2026 to give mayors and local leaders in England powers to impose a "tourist tax" on overnight accommodation, in what would be Labour's latest move to raise local revenue. Deputy Prime Minister Angela Rayner is due to give further details at a meeting with mayors, with hospitality industry figures warning the levy could trigger significant job losses and add hundreds of pounds to holiday costs, particularly in areas heavily reliant on tourism.

Rather than a flat fee as previously mooted, the charge could instead be a percentage of overnight stay costs with no upper limit, unlike capped schemes in cities such as Paris, Rome and Berlin. Andy Burnham, formerly Manchester mayor, is reported to have pushed for the plans to be strengthened; Manchester already charges £1 per room per night. A 3% levy proposed by Lord Khan for London could raise an estimated £350 million a year, while Tees Valley mayor Lord Houchen has rejected the idea outright. UK Hospitality chief executive Allen Simpson warned of "damaging effects" already seen from a similar tax in Edinburgh, though a government source said mayors were unlikely to set rates high enough to harm local tourism, with most expected to opt for just a few per cent.