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Thursday, 5 November 2026 Business · World · Analysis
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Tourist tax in England: bill in Parliament – up to 5% of the room price, first 28 nights only

The government has introduced a Visitor Levy Bill in the House of Commons. Mayors in England will be able to add a percentage to the price of overnight stays, and ten have pledged a maximum of 5 per cent. We explain who it affects, the exemptions and what guest house owners should do.

Hotele przy promenadzie w Blackpool
Hotele przy promenadzie w Blackpool. Photo: Ian S, CC BY-SA 2.0, Wikimedia Commons

05.11.2026, 11:01 (UK time)

News

The government has introduced the Visitor Levy Bill in the House of Commons, on Wednesday 4 November. It will give mayors and local leaders in England the power to charge a levy on overnight stays. The levy will be a percentage of the accommodation price, not a flat fee. Ten mayors have committed to a maximum rate of 5%.

It will apply only to the first 28 consecutive nights of a stay – longer stays count as long-term accommodation. Exemptions include student accommodation, care homes, children’s homes, school boarding houses, temporary accommodation, shelters and refuges. Occasional hosts renting a spare room will pay only above an earnings threshold. Hotels and other accommodation providers will account for and pay the levy. The money will stay in the area – for transport, high streets, parks, toilets, events and promotion.

What it means

It is not law yet. The bill must pass both Houses of Parliament, and the government has not given a start date. Before an area introduces a levy, it must publish a plan, consult residents and businesses and secure agreement within its authority. In practice, levies in England will take time to appear – and not everywhere.

For Poles running guest houses, B&Bs, hotels or short-term lets, it means a new accounting duty. For families visiting relatives and staying in hotels, a night’s stay may become slightly more expensive.

Why it is happening

Popular tourist destinations have long complained that visitors put pressure on their budgets while money for maintaining streets and services runs short. Scotland and Wales already have their own visitor levy legislation. Similar levies operate in many European cities. Minister Angela Rayner says every pound raised will stay in the local area.

Risks

  • Small guest houses and B&Bs may face more paperwork and fear losing customers to cheaper areas.
  • Different rates and exemptions in different areas may cause confusion.
  • Local authorities will get standard tax powers – accounting mistakes may be costly.

What could happen next

Parliamentary debate will now begin and the bill may still change. Large mayoral areas already preparing are likely to introduce a levy first. Watch the progress in Parliament and consultations in your area.

What to do

  • If you run accommodation, follow your local authority’s consultation and take part. It is the moment to raise concerns.
  • Prepare your booking system and accounts for a possible percentage levy.
  • If you let a room occasionally, check the earnings threshold your area sets.
  • When planning family visits or trips, expect stays in some cities to cost a few per cent more.

Contact us

Have a question or need help in Polish? Email [email protected], use the live chat on our website or call 07508 267866 (Mon–Fri 9:00–13:00 and 15:00–18:00, Sat 11:00–14:00).

Sources: GOV.UK – New visitor levy powers to put money back into local communities

Photo: Ian S, CC BY-SA 2.0, Wikimedia Commons.

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