England Bold New Proposal Tourist Tax on Overnight Stays to Fund Vital Local Infrastructure and Energize Public Services

Published on November 26, 2025

In a move set to affect millions of visitors, the UK government has unveiled plans to introduce a tourist tax on overnight stays across England. This new levy, designed to raise funds for local infrastructure and transport improvements, will apply to those staying in hotels, Airbnb properties, B&Bs, and guesthouses. While the exact cost remains to be determined, the tax is expected to be modest and will be added to the final bill for accommodation. The introduction of this tax comes at a time when the cost of holidays is rising, making it a significant topic for travelers planning to visit the country. Here’s everything you need to know about how it will work and when it could come into effect.

Visitors to cities and regions across England could soon face a new tourist tax, under proposals recently outlined by the government. The tax, which will apply to overnight stays, aims to generate revenue for local infrastructure and transport improvements. While the exact amount of the levy is still to be decided, officials describe it as “modest.”

England sees more than 130 million overnight stays annually, which would potentially be subject to the new charge if it is implemented. This move follows a growing trend of tourist taxes being introduced in other parts of the UK and around the world, with places like Scotland, Wales, and numerous European cities already charging visitors.

The announcement comes at a time when the cost of holidays is already on the rise. Research reveals that package holidays for summer 2025 have increased by up to 11.5% compared to 2024, while hotel prices in London saw a 2.4% year-on-year increase, with the average cost of a room in July 2025 reaching £234.58.

How Will the Tourist Tax Work?

Under the government’s plans, local mayors will be granted the authority to impose a “modest” levy on tourists who stay overnight in hotels, Airbnb properties, B&Bs, and guesthouses. This charge is expected to be added to the final bill of a visitor’s accommodation. The tax will apply to all tourists, regardless of their nationality.

The funds collected from the tax will be used to support local infrastructure projects and improve transportation services, which are essential for maintaining and enhancing the tourism experience in these regions.

How Much Will the Tourist Tax Be?

While the exact amount is still under review, the tax is expected to be fairly low. A consultation with businesses and local communities is ongoing and will run until February. This will help determine the final rate, but it is anticipated that the charge will not exceed a few pounds per night. For comparison, Edinburgh’s tourist tax is set at 5% of the accommodation’s net cost, capped at five nights, while Wales plans to implement a tax of up to £1.30 per night per person.

Which Areas Will Be Affected?

The new tourist tax could apply to all areas in England, although the cost will likely vary depending on the location. The regions that will have the power to implement the tax include major cities and metropolitan areas such as London, Liverpool, Greater Manchester, the West of England, West Yorkshire, North East England, and York and North Yorkshire.

When Will the Tourist Tax Take Effect?

The introduction of the tourist tax is still some time away. A consultation period will last for 12 weeks, after which the English Devolution and Community Empowerment Bill, which grants mayors the authority to impose the levy, will proceed through Parliament. If the bill passes, local authorities will be able to begin charging the tax, though it may take some time before it is rolled out across all eligible areas.

A Growing Trend of Tourist Taxes Worldwide

The idea of a tourist tax is not new. Several cities across Europe, including Barcelona, Rome, and Venice, already charge visitors a tax as part of their accommodation fees. In the United States, some states also impose similar charges on tourists to help fund public services. These taxes are typically intended to offset the cost of maintaining local infrastructure, promoting tourism, and ensuring that visitors contribute to the upkeep of popular destinations.

In the UK, both Scotland and Wales have already introduced plans to charge tourist taxes, and with England now considering a similar move, the trend looks set to continue.

The Bottom Line

While the introduction of a tourist tax in England will likely be a modest charge for visitors, it is part of a broader effort to ensure that tourism continues to support local economies while helping fund essential services. As the consultation period progresses, more details about the implementation of the tax will become clear. For now, travelers planning to visit England should be aware of the potential for an added cost to their accommodation, though the final amount is still to be determined.