Overnight visitors to some of England’s most popular tourist regions could soon be paying a little extra for their stays, as the UK government unveiled sweeping new powers for regional mayors to introduce a tourist tax on overnight accommodation. Announced on November 26, 2025, the move has sparked celebration, caution, and criticism across Yorkshire, Greater Lincolnshire, and beyond, with politicians, business leaders, and holidaymakers all weighing in on the controversial proposal.
The new powers, outlined ahead of the government’s Budget, allow mayors to impose a modest levy on overnight visitors if they believe it’s right for their area—a system already familiar to travelers in cities like New York, Paris, and Milan. According to the BBC, Local Government Secretary Steve Reed described the measure as a way for local leaders to “unlock growth through investment,” funding everything from public transport upgrades to cultural events, all without needing approval from central government.
York and North Yorkshire Mayor David Skaith has been one of the most vocal advocates for the levy, calling it a “game changer” for his region. “A visitor levy in York and North Yorkshire will be a total gamechanger for our region. We’re home to beautiful towns, villages and cities and receive 41 million visitors a year as a result. A small charge on overnight stays could revolutionise how we deliver transport, support businesses, invest in infrastructure and the visitor economy. Building the healthy and thriving communities for our residents and everyone that comes to visit them,” Skaith told regional media, as reported by BBC.
Skaith’s enthusiasm is backed by academic research from York St John University and the mayoral combined authority, which found that a £1-per-night visitor levy could generate more than £26 million a year across York and North Yorkshire alone. If the charge were set at £2, that figure could rise to over £52 million. This revenue, Skaith argues, could be reinvested directly into the region’s transport, infrastructure, and visitor economy, helping to sustain its appeal for both locals and tourists.
West Yorkshire’s Mayor Tracy Brabin echoed this optimism, stating, “I’m delighted the government has heard the strong case Mayors have made for the power to ask visitors to pay a small fee to help drive growth. This will allow us to invest more into making our regions even better places to visit, unlocking opportunities and help our businesses thrive. This is a further vote of confidence in devolution and shows the government is backing mayors to achieve our ambitions.”
The new levy would apply to a range of accommodation providers—including hotels, holiday lets, bed and breakfasts, and guesthouses—though emergency accommodation, homeless shelters, and registered Gypsy and Traveller sites used as primary residences would be exempt. Mayors would also have the authority to apply other local exemptions as needed, tailoring the policy to their specific economies. The government has launched a 12-week consultation, closing on February 18, 2026, inviting businesses, communities, and other stakeholders to have their say on how the levy should be implemented, as detailed by the BBC and local news outlets.
Not everyone is convinced that the proposed tourist tax is a win for their region. In Greater Lincolnshire, Mayor Andrea Jenkyns has adopted a cautious stance. “I do not want to bring in a tax on holidays for hard-working Brits,” Jenkyns told the BBC, expressing concerns that the levy could drive tourists to other destinations and jeopardize the region’s £2 billion tourism industry, which supports 19,000 jobs. “I don't want to put their jobs at risk, so it's a fine balance, which I will investigate to make sure we get this right,” she added.
Bob Walker, chairman of the Skegness Accommodation Network Development, offered a nuanced perspective: “Personally, I think it is a good idea, providing the money that is raised is kept in the local area.” However, he warned that if neighboring areas do not adopt the tax, places like Skegness could lose out: “If we do it and say Yarmouth don't, then obviously people will go to Yarmouth rather than Skegness.” Skegness Mayor Jimmy Brookes also raised concerns about affordability, stating that “sticking on another tax” might tip the scales for budget-conscious holidaymakers, causing them to look elsewhere for “great value for money holidays.”
Among those most affected by the change—hoteliers and visitors themselves—reactions have been sharply divided. The Hospitality Association York (HAY) voiced “deep concern” that the visitor levy would worsen already challenging trading conditions. “Hoteliers remain deeply concerned about the impact of further costs amidst what are already extremely difficult trading conditions, not least since the catastrophic budget last year,” a spokesperson told the BBC. “York has seen a significant reduction in average daily rates across the city year on year, which identifies a highly price conscious overnight customer, meaning that any increase in costs will see a decline in visitors. Secondary spend in hotels' outlets and restaurants has also seen a decline year on year.”
Some hoteliers are even more blunt. Craig Dowie, owner of the Crown Hotel in Doncaster, dismissed the measure as “just another tax” on struggling businesses. “This government is throwing everything at us at the moment and businesses will not absorb it. If someone is paying £80 for a room now, it will be £82 plus VAT and it will be a straightforward re-charge on to the customer. No business will absorb the cost, it will get passed on in full to the customer.”
Regular visitors to English seaside towns also fear the impact. Denise and John Brackenbury, pensioners interviewed by the BBC in Skegness, warned, “It [tourist tax] is going to kill these businesses off.” Mrs Brackenbury added, “If it goes up we won't be able to come. We are pensioners—they tell you to save and then they take it all off you.” Yet, not all holidaymakers oppose the tax outright; Les Myers, another regular visitor, described it as a “semi-sensible” idea, “providing the tax was reasonable and fair.”
Despite the controversy, officials point out that tourist taxes are common in many global destinations. The proposed system would bring England into line with Scotland and Wales, which are set to introduce tourist taxes of £1.30 per night and 5% respectively next year. According to the government, research shows that “reasonable fees have minimal impact on visitor numbers,” and the money raised could help fund local projects that improve communities and enhance tourists’ experiences—potentially attracting even more visitors in the long run.
Business groups in some regions are cautiously optimistic. Sheffield Chamber of Commerce, for example, welcomed the idea, with executive manager Tracy Viner stating, “Sheffield Chamber of Commerce is an organisation that wants the best for the region, that's something we welcome with open arms. However, we are keen that the levy is set at a reasonable level that does not impact our growing visitor economy. If we can manage that, we're confident this will create opportunities that benefit everyone in Sheffield and further afield, now and for the future.”
As England’s regions prepare for a 12-week consultation, the debate over the tourist tax highlights the delicate balance between supporting local economies, funding public improvements, and keeping holidays affordable for all. The outcome will shape not only the future of tourism in Yorkshire, Lincolnshire, and beyond, but also the very character of England’s most-visited destinations.
