England’s mayors to get uncapped tourist tax powers – what we know

PoliticsBusiness & Finance
10 Sep 2026 • 7:40 PM MYT
The Independent
The Independent

The world’s most free-thinking newspaper

England’s mayors to get uncapped tourist tax powers – what we know

  • England’s mayors are set to be given powers to introduce an uncapped tourist tax charged as a percentage levy on accommodation costs for overnight visitors.
  • Hospitality leaders have warned the proposed tax could put jobs at risk, highlighting that UK holidays are already subject to high VAT and noting that similar European taxes are capped.
  • UKHospitality has written to Andy Burnham urging him to consider a holiday bonus scheme instead to support households facing cost-of-living pressures.
  • Housing, Communities and Local Government Secretary Angela Rayner will meet local leaders before further policy details are officially announced on Thursday.
  • Conservative leader Kemi Badenoch strongly criticised the proposal, arguing that increasing taxation hampers business growth and job creation.

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