Travelling to the UK could soon cost more as new tourist tax confirmed

Travellers visiting some of England’s biggest cities could soon pay extra, after the UK government confirmed plans to introduce a new overnight accommodation levy from 2028.

The levy will allow England’s 13 Mayoral Strategic Authorities, including London, to introduce a local tourist tax on overnight stays.

Chancellor John Healey announced it during his Budget speech on Wednesday, 28 October.

How will the new UK tourist tax work?

Unlike some visitor taxes that charge a fixed amount per night, England’s proposed accommodation levy will be calculated as a percentage of the nightly accommodation rate.

This means the amount visitors pay could vary depending on the price of their accommodation.

According to Business Travel News Europe, local mayors and leaders of strategic authorities will be able to decide whether to introduce the levy and determine how the revenue is spent.

The government has confirmed that the powers will become available from 2028, although the precise rates and implementation details will be determined locally.