**Labour Mayors Propose Capped 5% Tourist Tax for England, Drawing Fire from Opposition**
**London, UK** – Labour mayors in England, including Greater Manchester’s Andy Burnham and Liverpool City Region’s Steve Rotheram, have jointly committed to capping any future tourist tax at 5% of an overnight stay, even as their plans face sharp criticism from Reform UK and the Conservatives.
The proposed “visitor levy,” or “transient visitor tax,” is envisioned as a vital new revenue stream for regional authorities, earmarked for funding local infrastructure, cultural events, sustainable tourism initiatives, and essential public services. The mayors argue that such a charge is standard practice in major cities globally and would provide much-needed financial autonomy for their regions.
In a joint statement, the Labour mayors outlined their vision for a devolved power that would allow them to implement the levy, stressing that the 5% cap would ensure it remains a modest and fair contribution from visitors. They highlighted the success of similar schemes in cities like Edinburgh, which introduced its own visitor levy earlier this year, and numerous European destinations.
Andy Burnham commented, “This isn’t about penalising visitors; it’s about empowering our cities to invest in what makes them attractive – from public transport to cultural venues and green spaces. A capped levy ensures affordability while providing crucial funds for local needs.”
Steve Rotheram added, “We believe in a fair system that works for residents and visitors alike. The 5% cap demonstrates our commitment to striking the right balance, allowing us to enhance the visitor experience and support local communities without placing an undue burden.”
However, the plans have been met with swift and strong opposition from national political parties.
**Reform UK** voiced concerns that introducing a new tax would deter tourists and damage the competitiveness of English cities, particularly during a period of economic uncertainty. A spokesperson stated, “At a time when we should be encouraging tourism and investment, adding another tax layer is counterproductive. It creates unnecessary bureaucracy and sends the wrong message to potential visitors.”
The **Conservative Party** echoed these sentiments, framing the proposed levy as an additional burden on businesses and a potential disincentive for domestic tourism. A Conservative spokesperson commented, “Labour’s instinct is always to tax. This proposed tourist tax could hit families’ holiday budgets and place further pressure on hotels and hospitality businesses already grappling with high costs. We need to support our tourism sector, not tax it into the ground.”
The Labour mayors countered that the funds generated would ultimately benefit the tourism sector by improving the visitor experience and allowing for investment in attractions and infrastructure that would draw more people in the long run. They also stressed that the levy would only apply to overnight stays, not day-trippers.
For the proposed visitor levy to become a reality, the UK government would need to introduce primary legislation to grant devolved powers to regional authorities in England. The debate over this “tourist tax” is set to intensify as local leaders push for greater financial autonomy and national parties weigh the potential economic impacts.
