Overview
- The government confirmed that local leaders can introduce a modest charge on overnight stays at hotels, B&Bs, guesthouses and holiday lets, including short‑term rentals.
- Revenue is intended for transport, infrastructure and visitor‑economy projects, with spending decisions taken locally without further central approval.
- A public consultation runs until 18 February, with proposed exemptions for emergency accommodation, homeless shelters and registered Gypsy and Traveller sites used as primary residences, plus scope for local exemptions.
- Sadiq Khan, Andy Burnham and other mayors welcomed the powers, while figures such as Westminster’s council leader pressed for revenue sharing with boroughs and Tees Valley mayor Ben Houchen said he will not implement a levy.
- Hospitality groups criticised the plan as a potential deterrent to visitors, though ministers cited research indicating minimal impact from reasonable fees, and estimates suggest a 5% London levy could raise about £240 million annually.