5th November 2026
Visitor Levy Bill introduced in Parliament, letting local leaders raise and reinvest money in much loved high streets, public spaces and tourist attractions.
Local leaders are a step closer to getting new powers to invest more in high streets, cultural sites and other attractions that make communities great places to live, work and visit.
This Visitor Levy Bill, introduced in the House of Commons today, marks the most significant step in making fiscal devolution a reality, giving mayors and leaders who know their areas best the ability to introduce a small fee on overnight stays. Money raised through the levy will stay in the local area, giving communities investment in the places and services used by visitors and residents.
Mayors who choose to introduce a levy will be able to invest in what makes their regions special and improve the visitor experience from better high streets to public spaces – including public toilets and parks, cultural events and security and destination promotion. Money raised from visitors will stay in the area, helping attract more visitors, support local businesses and improve places for the people who live there too.
But the government will continue to protect lower cost family breaks by requiring the levy to be charged as a percentage rate of the cost of accommodation, rather than as a flat fee, meaning those choosing cheaper accommodation will pay less. Ten mayors have also committed that any levy introduced in their areas would be no higher than 5%, providing certainty for visitors and businesses while preserving local choice.
This piece of legislation builds on the significant commitment made at the Budget to drive good growth in every postcode, including through the government’s high streets strategy and wider plans to rewire the state, and shift power from Whitehall back to local communities.
Secretary of State for Housing, Communities, and Local Government Angela Rayner said:
Millions of people visit our wonderful towns and cities each year, and it’s right that our communities should be able to feel the benefit of that footfall.
Every pound raised through these levies will stay in the local area. Whether that’s better transport, thriving high streets, or more attractions that keep visitors coming back.
This is about giving mayors and local leaders the choice to invest back into what matters most to local people, while protecting lower-cost stays and making sure businesses have their say.
Bev Craig, Mayor of Greater Manchester said:
In Greater Manchester, we campaigned for an Overnight Visitor Levy to boost our region and give mayors the powers to raise additional funds through a modest levy on overnight stays. This would give us access to new funding that we can reinvest into our places to support our visitor economy, improve public services and drive good growth.
In Manchester we pioneered a similar scheme in recent years which has been a resounding success. Our industry-led City Visitor Charge has shown that the model can work, generating millions of pounds that has been invested back into things like street cleaning and our work to attract major events, with widespread support from the hospitality sector.
The Overnight Visitor Levy also represents a major moment for devolution and a further vote of confidence in the ability of mayors and local leaders to make decisions in the best interests of their places. It means we can attract more events, make our region more welcoming for tourists with cleaner streets and invest in long term projects like extending the tram network.
The important thing now is that this is genuinely devolved. Any levy needs to work for our city region and be shaped with our councils, businesses and the local hospitality sector, with the money raised here being used for the benefit of people and businesses in Greater Manchester.