Regional mayors across England are poised to receive the authority to implement a percentage-based charge on overnight visitor accommodations. Government officials are scheduled to outline the framework during a virtual consultation between ministers and regional leaders.

The upcoming policy will allow metropolitan mayors to levy additional fees on hotels, guesthouses, and other lodging options. Unlike flat-rate charges, the proposed mechanism scales with the cost of the stay. Officials believe this proportional approach will safeguard budget-friendly travel while giving municipal authorities a new tool to generate revenue.

Major urban centers like London are expected to adopt the measure to support local municipal services and infrastructure. Similar fees are widely utilized in global destinations such as Rome, Amsterdam, and New York. Closer to home, Scotland already permits local authorities to enact visitor charges, with Edinburgh implementing a five percent levy earlier this year. Wales is also preparing to introduce a capped nightly fee next spring.

While the policy has gained support from regional leaders who view it as essential for economic development, the hospitality sector has voiced strong opposition. Industry representatives argue that the open-ended nature of the tax could place an undue financial burden on domestic travelers. Trade organizations estimate that families taking holidays in England could see substantial increases in their overall travel expenses.

Critics from the business community have cautioned that struggling local governments might rely too heavily on the new revenue stream. Concerns have also been raised regarding the potential impact on seasonal holiday parks and tourism employment. Some local council representatives have emphasized the importance of ensuring that funds collected are shared directly with the specific boroughs hosting the visitors.

Under the anticipated guidelines, regional leaders must outline their spending strategies for the collected revenue by March 2028. While a few English cities currently operate voluntary, business-led accommodation charges, elected officials have lacked the legal authority to mandate such fees region-wide. The new legislation is intended to broaden local fiscal autonomy as part of a wider government devolution strategy.

Reporting based on coverage first published by BBC News. Read the original report at BBC News.