Chronological coverage updated 11th September 2026 04:21.
Update 1 · 11th September 2026
Labour Mayors Prepare Tourist Tax as Hospitality Leaders Warn of Job Losses
Labour metro mayors across England are preparing to exercise newly granted powers enabling them to impose an overnight visitor levy on hotel stays, bed and breakfasts, and holiday rentals. Local leaders, including London Mayor Lord Khan, Liverpool Mayor Steve Rotheram, and North East Mayor Kim McGuinness, have indicated support for setting the tax at up to 5 percent to raise regional revenue. Deputy Prime Minister Angela Rayner previously announced the measure to grant devolved authorities local revenue-raising choices. Sources: gbnews.com.
Industry Backlash and Opposition
The proposed levy has met strong opposition from the hospitality sector. UKHospitality calculated that a 5 percent levy would add £99 to the price of a one-week hotel stay in London and £198 for a fortnight, warning that widespread adoption across England could destabilize regional businesses. Sources: gbnews.com.
Replicating a 5 percent visitor charge across England could amount to a £1.6 billion financial hit to the hospitality industry. — according to gbnews.com, as reported by gbnews.com.
More than 100,000 hospitality jobs have been lost across the United Kingdom since Labour took office in 2024. — according to gbnews.com, as reported by gbnews.com.
According to gbnews.com, Sir Rocco Forte, Chairman of Rocco Forte Hotels said: “It's really a disgrace. They talk about growth, and all they do is attack business.”.
According to gbnews.com, Sir Tim Martin, Founder and Chairman of JD Wetherspoon said: “It's really more of the same increased costs which will inevitably be passed on to customers.”.
Political opposition has expanded beyond industry executives. Conservative Tees Valley Mayor Lord Houchen and Reform UK Greater Lincolnshire Mayor Dame Andrea Jenkyns confirmed they will refuse to introduce the tax in their respective regions. Furthermore, internal opposition has surfaced within Labour, with South Shields MP Emma Lewell publicly criticizing the levy as an anti-growth measure introduced at a precarious moment for regional businesses. Sources: gbnews.com.
- Labour mayors intend to enact an overnight visitor levy of up to 5 percent to fund local infrastructure and services.
- Hospitality groups warn the policy risks triggering severe job cutbacks across hotels and leisure accommodation.
- Conservative and Reform UK mayors have explicitly ruled out introducing the tourist tax in their authorities.
Sources: gbnews.com
