.jpg?ssl=1 "UK cities could soon be allowed to implement a tourist tax – here’s everything you need to know")
Regions and cities across the country are set to benefit from extra funds following the latest announcements regarding the UK tourist tax – officially known as the overnight visitor levy.
In a statement published by the UK Government on 10 September, it was announced that mayors and local leaders would soon be handed the power to introduce the overnight visitor levy to maximise the benefits of tourism to the country.
The new fee on overnight stays may then be invested to boost tourism and drive growth, supporting local communities.
Secretary of State for Housing, Communities and Local Government Angela Rayner said: “Our amazing towns and cities, and our picturesque rural and coastal communities welcome millions of visitors every year – local leaders should have the power to make the most of that popularity.”
“This measure will give mayors the choice to raise and reinvest funding where it’s needed most. It’ll help support the local services, public spaces and attractions that both residents and visitors rely on, with decisions taken by people who know their area best.”
While early reports suggested that the UK tourist tax, as it has since been dubbed, would be uncapped, the statement released on 10 September made it clear that budget staycations would be protected. Rather than a flat fee or rate, the levy will be charged as a percentage of the cost of the accommodation – but UK citizens won’t be exempt from paying the fee in other UK regions or cities.
This is just the latest in a growing number of fiscal devolution reforms that see local authorities have more power over their areas following the appointment of Andy Burnham as Prime Minister.
Steve Rotheram, Mayor of the Liverpool City Region, said, “This is something I’ve been calling for over many years, so I’m really pleased the government is taking forward plans to give Mayors the power to introduce a visitor levy locally.
“Our visitor economy is already worth more than £6.8bn a year and supports more than 55,000 jobs across the Liverpool City Region. A modest levy on overnight stays could potentially raise up to £18m a year – money that would stay here and be reinvested directly into the events, culture, experiences and infrastructure that bring millions of visitors to our region.
“Visitor levy mechanisms are often used in many great cities across the globe to improve the visitor offer and attract even more people to enjoy the experience. It would give us more money to support the things that make our visitor economy such a success, while helping our businesses and communities to benefit from its continued growth.”