You may have seen recent discussion about a possible visitor levy, sometimes called a tourist tax or holiday tax, for overnight stays in parts of England. As we work closely with our property owners and welcome guests from across the UK, we think it is important to explain what is currently being proposed, what remains uncertain, and what it could mean for those planning future holidays in the UK.
Understanding the proposed Visitor Levy in England
At the moment, no English Visitor Levy has been introduced in practice, however the Government has consulted on giving Mayoral Strategic Authorities in England a discretionary power to introduce a local overnight visitor levy. The consultation also asked whether similar powers should be extended to Foundation Strategic Authorities. The proposal is not for a single national charge across England; instead, local leaders would decide whether to introduce a levy in their own area, within a framework set by the Government.
Importantly, the Government has stated that any levy would be at the discretion of local leaders rather than a mandatory national levy. In other words, local leaders would decide whether to introduce one in their area.
What is a visitor levy?
A visitor levy is an additional charge connected to overnight accommodation. In England, while the exact design has not yet been finalised, the consultation considered how a levy might be calculated, including whether it should be linked to the cost of accommodation, and what rules should apply nationally or locally.
The Government has said that the aim of the levy is to raise a new source of revenue for local areas that could be invested in projects to support local economies, public services, infrastructure and visitor experiences. Visitor levies are already used, or being developed, in several destinations. For example, Scotland and Wales have both passed legislation giving local authorities powers to introduce visitor levies, although each system is different and local decisions will determine how they apply in practice.
There are still important details to resolve, including whether there should be a national cap, how refunds or booking changes would be handled, and how the charge would be shown to visitors at the point of booking.
How could this affect visitors?
If a visitor levy is introduced in a particular area, visitors booking overnight accommodation in that location may see an additional charge reflected in the cost of their stay. The detail will depend on the final legislation and on local decisions made by the relevant authority.
The main impact would likely be an increase in the overall cost of holidaying in England. While the proposed individual charge can appear relatively small, the additional cost would make a difference. This matters because many UK holidays are booked by families and groups who plan carefully around a fixed budget. A charge that looks modest on a single night may feel more noticeable over a longer stay, particularly when combined with travel, food, attractions, and other holiday costs.
It is also worth remembering that many overnight visitors in England are domestic travellers. That means any levy would often be paid by UK households choosing to holiday closer to home, rather than only by overseas tourists.
Classic Cottages' view
At Classic, we recognise that funding is essential to maintaining and improving the holiday destinations that visitors enjoy. Well-maintained public spaces, cultural attractions, transport networks and local services all contribute to a positive holiday experience. We are not opposed to investment in local destinations; however, we believe any visitor levy would need to be designed very carefully, with visitors and local tourism businesses clearly in mind.
First, affordability matters. Holiday homeowners and accommodation providers are already facing significant additional costs, many of which stem from recent policy and regulatory changes, including additional fire-safety requirements, the removal of the Furnished Holiday Lettings tax regime, and increased tax costs for some property owners, alongside wider pressures such as energy and employment costs. These increases affect the cost of providing holiday accommodation and, ultimately, the prices paid by visitors. With many households already balancing accommodation, travel, food and activity costs, any further charge should be considered carefully so that holidays in England remain accessible, especially for families and visitors planning longer stays.
Secondly, bookings should remain simple and transparent. Visitors should be able to see clearly what they are paying, why they are paying it, and whether it applies in one destination but not another. A system with different rates, exemptions or rules between neighbouring areas could be confusing for visitors and difficult for accommodation providers to explain.
Thirdly, if visitors are asked to contribute more, there should be clear transparency about how the money is used. In our view, revenue should be reinvested directly and visibly in the visitor economy, with particular attention to the places where visitors stay and the services they use.
Finally, we believe any levy should be introduced only after careful assessment of its impact on tourism, local businesses and visitor behaviour. Small accommodation businesses play an important role in English tourism and already operate within a complex regulatory environment. Any new requirements and their impacts should therefore be properly considered and be as straightforward and proportionate as possible.
These concerns are not about opposing investment in local areas. Rather, they reflect the need to ensure that any new charge is fair, transparent and does not unintentionally discourage or constrain people from taking holidays in the UK.
What do we know for certain?
● The Government has consulted on giving English Mayors the power to introduce visitor levies. The consultation ran between November 2025 and February 2026, focusing on how such a system could operate.
● The proposed power would be discretionary. Local leaders would have the powers to choose whether to introduce the Visitor Levy in their area.
● The intention is for the revenue generated to support localised economic growth. The Government has said the levy could help fund projects that improve local areas and visitor experiences but the exact details of where the revenue raised will be invested have not yet been specified.
● No visitor levy currently applies on overnight stays across England.
What is still undecided?
Some important details remain subject to Government decisions and future legislation.
These include:
● Which authorities will ultimately have the power to introduce a levy.
● How the cost would be calculated.
● Whether exemptions would apply and what they would be.
● Whether there would be a cap on Visitor Levy rates.
● How the costs would be collected and administered.
● How revenues would be allocated and how the impact on tourism in England would be monitored and reviewed.
● What notice period there would be before a levy takes effect.
Unfortunately, until those decisions are made, it is not possible to say exactly what visitors would pay, where any levy might eventually apply, or when it will affect bookings. However, the Government has stated the levy will not be realistically introduced until 2027 or 2028.
