Ministers are set to give mayors in England the power to impose a nightly levy on hotel and Airbnb-style stays, dubbed a "tourist tax", as part of a wider devolution push. Housing secretary Angela Rayner is meeting mayors on Thursday to outline plans that would let local leaders charge visitors a percentage of their accommodation costs, rather than a flat fee, so as to protect budget breaks, with revenue going towards transport and public services. The move follows a similar scheme already operating in Scotland, but hospitality industry figures warn it could damage businesses already squeezed by tax rises, with UKHospitality's chief executive Allen Simpson arguing it amounts to an "open-ended" power that could exceed the capped tourist taxes charged in cities such as Paris, Rome and Berlin.

Under the plans, any levy is expected to be capped at around 5% of accommodation costs, with the London mayor's office indicating this would be welcomed. Andy Burnham, who introduced a £1 per room, per night charge in Greater Manchester in 2023, is likely to champion the wider policy, while Sadiq Khan and other mayors previously lobbied ministers to introduce such a levy. Edinburgh became the first Scottish city to bring in a 5% tourist tax in July, and Welsh councils will be able to charge £1.30 per person per night from April 2027. UKHospitality has urged Burnham to instead consider a "holiday bonus" scheme, in which central government revenue would be devolved to councils based on visitor numbers.