England's mayors get power to levy tourist tax, hospitality warns of 33,000 job
England's mayors gain uncapped power to levy tourist taxes on hotels and Airbnbs.
England's local government secretary Angela Rayner announced that mayors will gain sweeping new powers to levy taxes on holiday accommodation including hotels and Airbnbs. There is no upper limit on how much they can charge.
The hospitality industry reacted with outrage. UKHospitality warned that a 5% overnight levy across England could result in 33,000 job losses and a £2 billion economic hit.
The owner of Premier Inn called the move "hugely damaging". A co-owner of Choice Hotels said it felt like being "strangled" after the sector is already struggling.
Most Labour metro mayors have agreed to cap charges at 5%, saying the tax will help fund local communities. Detailed plans for how the money will be spent are due in early 2028.
- Angela Rayner
- Local government secretary
- 33,000
- Predicted job losses
- £2 billion
- Economic impact
- 5% overnight levy
- Agreed cap rate
Why it mattersHotels and hospitality businesses face higher operating costs that may be passed to guests or lead to staff cuts and closures.
AustraliaNo direct Australian effect yet, but if successful, could influence Australian city mayors to pursue visitor levies for local funding.
