Kim McGuinness welcomes powers to introduce ‘tourist tax’

Under the new plans, mayors will have the power to bring in a visitor levy applied to overnight accommodation.

The new charge, announced by the Government, is designed to help mayors raise funds for investing in transport, infrastructure, and tourism-related projects.

The levy would apply to visitors staying in hotels, bed and breakfasts, guesthouses, and holiday lets.

Steve Reed, Secretary of State for Housing, Communities and Local Government, said: “Tourists travel from near and far to visit England’s brilliant cities and regions.

“We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”

Kim McGuinness, Mayor of the North East, said: “I promised that I would introduce a visitor levy when I became Mayor and now we’ve secured those powers from Government.

“Even a small amount levied on each overnight stay will transform the welcome we can give to people coming to North East England from all over the globe.

“This signals the start of a new era of events and festivals we will stage to bring a new focus to our unique world heritage sites at Hadrian’s Wall and Durham Cathedral, our stunning coastlines and the iconic Tyne bridges and gorge.

“This supports our ambition to double the size of the visitor economy creating thousands of new jobs in the next decade.”

The Government has said the move brings UK mayors in line with cities such as New York, Paris, and Milan, where similar visitor levies are already in place.

England currently attracts more than 130 million overnight visits each year.

Officials say the charge could be used to support cultural and sporting events, and invest in transport.

A North East Combined Authority spokesperson said: “In London, the levy could go towards improvements to some of the capital’s busiest and famous streets to improve the experience for both visitors and Londoners, as well as supporting the city’s entertainment, sport and culture including helping smaller venues

“Meanwhile in Liverpool, it could help the city to support the major events that drive visitors – such as the upcoming UEFA EURO 2028 – and improving the infrastructure that visitors and locals rely on.

The proposed levy is part of the Government’s broader devolution agenda, aimed at giving leaders greater control over decision-making.

A 12-week public consultation is now open, designed to give businesses, residents, and stakeholders the opportunity to have their say.