_Overnight Visitor Levy: what we know so far
Will new tax be applied in Suffolk and Norfolk
On November 25, 2025, the Ministry of Housing, Communities and Local Government announced plans for Mayors to be able to introduce an Overnight Visitor Levy (OVL).
A consultation was launched the following day running to February 28, 2026. The results of the consultation have not been published to date.
The Overnight Visitor Levy was included in the King’s Speech on May 13, 2026.
It is anticipated that the OVL will be available to an elected Mayor for Suffolk and Norfolk when the new Combined Authority is established. The election is scheduled for May 4, 2028.
A VisitEngland conference of LVEPs determined there was no consensus about how it would work or indeed if it should happen at all.
Scenarios put forward included:
• 5% levy on accommodation
• £2 per person per night
• £2 per room per night
Following nine written Parliamentary Questions, the Treasury admitted that despite the Government introducing enabling powers for an England Overnight Visitor Levy in the King’s Speech, they did so without economic modelling of impacts on jobs, growth, tax receipts or tourism demand, and without assessing alignment with its target of welcoming 50 million international visitors by 2030.
Ministers will instead rely on the Future of UK Tourism inquiry and limited international VAT comparisons made ahead of the consultation.
The Future of UK Tourism inquiry was launched by the Department for Culture, Media and Sport on April 9, 2026, and ended on May 18, 2026. It is not known when the inquiry report will be published.
Oxford Economics modelling of OVL suggests reduced visitor demand, lower tourism spending, and negative knock-on effects for the wider economy.
The Tourism Alliance has argued that the UK is now 113th out of 119 countries for price competitiveness.
Edinburgh's 5% Visitor Levy will come into force in July 2026, becoming the first statutory visitor levy introduced under Scotland's Visitor Levy legislation.
Conservative leader Kemi Badenoch has said they won’t introduce an OVL in their Mayoralties or authorities.
Crucially, no Mayoralty that says it’s in favour has said the money will be ring-fenced for tourism.
Some argue that OVL money could be used to improve public realm infrastructure that will help tourists and locals, like roads.
Frequently asked questions
- What is an Overnight Tourism Levy (OVL)?
The Overnight Visitor Levy, also known as a 'Tourism Tax', is a local tax on overnight stays in accommodation, designed to raise revenue for local mayoral authorities to invest in tourism, infrastructure, and public services.
- What is the cost to a visitor of an Overnight Visitor Levy?
The charge can be a flat rate for the entire duration, or a series of flat rates, for example, £2 per room per night or £2 per person per room per night. It can also be set as a percentage of the nightly fee, as Edinburgh are doing.
- Did the government do an economic impact assessment before bringing forward legislation on an Overnight Visitor Levy?
The Treasury has admitted that despite the Government introducing enabling powers for an England Overnight Visitor Levy in the King’s Speech, they did so without economic modelling of impacts on jobs, growth, tax receipts or tourism demand.
- Will Norfolk and Suffolk have a Tourism Tax?
A Suffolk and Norfolk Mayor, currently due to be elected on May 4, 2028, will have the power to implement the tax.
Mayors and local leaders will decide whether to introduce a levy. As part of that process, they will be required to consult and consider the impacts on businesses and others.
- Will Airbnb be included in an Overnight Visitor Levy?
Yes, short-term lets, such as Airbnb-type accommodation, are intended to be included within the taxable accommodation base for the Overnight Visitor Levy (OVL). However, obtaining robust data on STLs may be a separate challenge.
The Short-Term Lets Registration Scheme is a separate regulatory initiative created under the Levelling Up and Regeneration Act 2023, aimed at providing better data on the location and scale of short-term lets. So while these are distinct policies, they are likely to interact in practice.
- Do other countries have Overnight Visitor Levies?
It’s something you might have spotted in Paris, Barcelona or Amsterdam: an extra fee, added to your nightly accommodation bill. They are typically very small – in France, the amount starts at 50p per night.
- Are there Overnight Tourism Levies in the UK?
Yes, Edinburgh implemented an Overnight Tourism Levy in July, 2026.
The Edinburgh Visitor Levy is a 5% charge on the cost of paid overnight accommodation within the City of Edinburgh Council boundary.
The charge applies to the first five consecutive nights of any stay, and the full 5% is calculated before VAT is applied.
The income generated from the levy will support public services, cultural programmes, and city infrastructure, benefiting both visitors and residents.
Glasgow will have a 5% overnight accommodation levy from 25 January 2027. Aberdeen will have a slightly higher levy of 7% on overnight stays from 1 April 2027.
Following on from Scotland, Wales will also start doing the same by 2027.
In Wales, visitors to campsite pitches, hostels and dorms will pay 75p per person, per night, while all other types of visitor accommodation will have a £1.30 charge per person per night.
- Are there Overnight Tourism Levies in England?
The Government plan is for Mayors to implement the Overnight Visitor Levy but Manchester and Liverpool Accommodation Business Improvement Districts (ABID) have already applied a fee to overnight stays.
In Liverpool visitors pay £2 per night each.
Visitors in the Manchester ABID zone pay an additional £1 per room, per night.
- What would Tourism Tax money be spent on?
The Government have said it will be up to Mayors.
Andy Burnham, when Mayor of Greater Manchester, commented in November 2025: 'The levy will allow us to invest in the infrastructure these visitors need, like keeping our streets clean and enhancing our public transport system through later running buses and trams.'
The Liverpool ABID have said that OVL revenues will be spent on marketing or developing events to attract visitors, encouraging return visits. They are currently focused on attracting business events mid-week to support quieter times.
- Who is against the Overnight Visitor Levy?
Trade body UKHospitality have said that the Overnight Visitor Levy is a 'shocking U-turn' by the Government. In September 2025, Minister for Business and Trade Chris Bryant said that there were 'no plans' to introduce such a levy.
Following the King’s Speech, Allen Simpson, Chief Executive of UKHospitality, said: 'The Government has confirmed it will legislate to make family holidays more expensive during a cost-of-living crisis.
'It’s a shocking U-turn after it told both the House of Commons and UKHospitality that it would not implement a holiday tax.'
Luke Petherbridge, director of public affairs at travel and tour association Abta, said: 'British travel and tourism is already uncompetitive on cost grounds and a visitor levy further adds to this.'
- Should ABIDs or Mayors levy the Tourism Tax?
Bill Addy, CEO of Liverpool BID Company, has argued that local ABIDs are preferable to a nationwide law: 'We believe a model where the private sector can invest directly into visitor economy support is the better model. Tourists are used to city charges; ours is a minimal, fixed fee that is easily communicated and absorbed. We are not using it to deter tourists, so that’s important to us.'
'Business Improvement Districts have to be accountable and transparent, and it means we can share the details of investment. It also allows for a hyperlocal approach that is both flexible and reactive,' he said.
The Government plan is for Mayors to levy the tax.