Small hotels, guest houses and holiday-let businesses in England have a new visitor levy proposal to plan for. The government has confirmed more of the intended design, including a charge calculated as a percentage of accommodation costs. There is still legislation to come, followed by local decisions, so this announcement alone is no reason to add a new charge to bookings.
What has been announced?
In its 10 September statement to Parliament, the government said mayoral and foundation strategic authorities would receive powers to introduce an overnight visitor levy. Each authority would decide whether to use the power after consultation. It would not be compulsory across England.
The government has chosen a percentage of the accommodation price rather than a fixed sum per night. Ministers argue this would mean a lower charge for cheaper accommodation. The statement says mayors would be able to set out spending plans by March 2028; that is not a confirmed date for every provider to begin collecting a levy.
This sits alongside the wider changes to English mayors’ funding and powers. The proposed revenue could support the visitor economy and other local priorities, making the eventual spending plans relevant to nearby restaurants, shops and attractions too.
What remains to be settled locally?
The government announcement says a bill will be introduced in due course. It also says accommodation providers would be responsible for paying the levy to the relevant authorities, with further work promised on making administration straightforward.
Local leaders would have flexibility over exemptions, with campsites given as one possible example. Temporary accommodation, shelters and refuges would be outside the levy. Businesses should therefore avoid assuming that every paid stay would be treated identically, or that an exemption suggested nationally has already been adopted for their premises.
The announcement does not give an operator a complete local rate, commencement date or reporting timetable. Those details will matter more to day-to-day trading than headline estimates of how much the levy might raise.
Useful preparation before changing prices
For a small business, the sensible first step is to identify the strategic authority covering each property and follow its official updates. If you operate in more than one area, keep a separate note for each location. A single company-wide assumption could create confusion later.
Make a short inventory of how guests book: directly, through an online travel agent, by telephone or through a corporate account. Ask software suppliers how their systems can handle a future local charge, amended stays and cancellations. At this stage, gather information and indicative costs; wait for the applicable rules before commissioning a detailed implementation.
Review how far ahead you accept reservations and where your booking terms explain changes in taxes or charges. Put any uncertainty to your adviser rather than promising guests that an unconfirmed levy will, or will not, apply. Staff answering questions need the same clear message about what is currently known.
Give local consultations practical evidence
When a local proposal appears, respond with examples from your business. Explain the time needed to update booking systems, train staff and reconcile payments. Identify complications such as long advance-booking periods, mixed accommodation packages or different sales channels. Specific examples will make the administrative burden easier for decision-makers to understand.
Ask how proposed spending would help your visitors and employees. Better evening transport, maintained public spaces or stronger local events may be valuable, but businesses should be able to see what is proposed and how results would be assessed.
Operators with Scottish properties should keep the jurisdictions separate. Our Edinburgh visitor levy article covers that city’s scheme; it is not a set of instructions for English bookings. For England, the next useful milestones are the bill, official implementation guidance and your authority’s consultation.
Sources checked on 11 September 2026: the government announcement and parliamentary statement linked above, and the government’s consultation outcome page.
