- Angela Rayner supported giving councils power to tax overnight visitors.
- Several local leaders across England are calling for tourism levies.
- The Treasury and No. 10 currently oppose the measure, citing economic risks.
Despite growing pressure from regional leaders, the UK Government has confirmed it has no intention to implement a tourism tax in England.
However, Chancellor Rachel Reeves has expressed concerns that such a tax might harm hospitality businesses already facing tight margins. The Government’s official stance remains that no plans are in place for a nationwide tourism tax.
Calls for England Tourism Tax Grow, but Government Holds Back
Local councils, including Bath & North East Somerset and Cambridge, have written to Angela Rayner urging the inclusion of a tourism levy in the ongoing devolution legislation. Their argument centers on the growing burden that tourism places on infrastructure, public transport, and waste services—costs often not covered by current council budgets.
Six regional mayors, including those from London, Manchester, and the Liverpool City Region, have signed a joint letter demanding new fiscal powers, including the ability to tax visitors. They argue that empowering local authorities aligns with the broader devolution agenda and would help regions manage the direct impacts of tourism.
Scotland introduced its own tourist levy law in 2024, and Wales followed suit in 2025, giving councils autonomy to charge up to £1.30 per night. Proponents in England cite these developments as a model, pushing for parity in local government powers across the UK.
Despite these calls, central government remains cautious. Officials emphasize existing tools like ABIDs and the Mayoral Council Tax Precept, which can already be allocated to local growth initiatives. However, critics say these mechanisms are limited and do not fully address the scale of tourism-related costs.
While momentum grows at the local level for an English tourism tax, resistance from central government highlights the tension between regional autonomy and national economic strategy.
“Local government is not a servant of central government, but a partner.” – Sir Richard Leese
