Chronological coverage updated 11th September 2026 06:45.
Update 1 · 11th September 2026
Ministers Prepare Uncapped Percentage Tourist Tax Plans for Overnight Stays in England
Ministers are setting out plans for a new tourist tax across England that could add hundreds of pounds to the cost of domestic holidays and overnight stays. While previous discussions focused on a fixed flat fee per night, the latest policy direction involves charging a percentage of the total cost of overnight accommodation, with no maximum upper cap established in the current proposal. Sources: dailymail.co.uk.
A proposed 5 per cent tourist tax on overnight stays in London could generate up to £580 million annually for the Mayor's office. — according to dailymail.co.uk, as reported by dailymail.co.uk.
Potential London Levy
Mayor of London Sadiq Khan is among local leaders evaluating the proposals, considering an accommodation levy of up to 5 per cent. If implemented at that level, the tax could raise an estimated £580 million per year for City Hall, providing significant additional local government revenue while altering accommodation pricing for domestic and international visitors. Sources: dailymail.co.uk.
- Proposed percentage-based tourist tax in England could raise significant revenue for local councils but increase domestic holiday costs.
Sources: dailymail.co.uk
