Visitor levy powers move a step closer, letting areas keep money from overnight stays

Birmingham's leaders could soon have the power to add a small charge to overnight hotel stays, with the money kept in the area to improve the places visitors and residents use, after the government introduced its Visitor Levy Bill in Parliament.

The Bill, introduced in the House of Commons on 4 November 2026, would let mayors and local leaders choose whether to introduce a levy on overnight stays. Every pound raised would stay in the local area.

How it would work

The levy would have to be charged as a percentage of the cost of accommodation, not as a flat fee, so people choosing cheaper stays would pay less. The government says this protects lower-cost family breaks.

Ten mayors have committed that any levy in their areas would be no higher than 5%, which the government says gives certainty to visitors and businesses while keeping the decision local.

Mayors who introduce a levy could spend the money on the things that make their area attractive to visitors: better high streets and public spaces, public toilets and parks, cultural events, security and promotion of the area.

"Every pound raised will stay in the local area"

Housing, Communities and Local Government Secretary Angela Rayner said: "Millions of people visit our wonderful towns and cities each year, and it's right that our communities should be able to feel the benefit of that footfall."

"Every pound raised through these levies will stay in the local area. Whether that's better transport, thriving high streets, or more attractions that keep visitors coming back."

She added that it was about "giving mayors and local leaders the choice to invest back into what matters most to local people, while protecting lower-cost stays and making sure businesses have their say."

What other cities say

Several mayors welcomed the Bill. Steve Rotheram, Mayor of the Liverpool City Region, said a modest levy there "could potentially raise up to £18m a year". David Skaith, Mayor of York and North Yorkshire, said he would introduce one in his county.

In Manchester, an industry-led City Visitor Charge has already raised millions of pounds for street cleaning and attracting major events, according to the Mayor of Greater Manchester, Bev Craig.

What it could mean for Birmingham

Birmingham is one of the UK's busiest destinations for conferences, concerts, sport and shopping, from the NEC and Utilita Arena to Edgbaston and the Frankfurt Christmas Market. A levy would be a choice for local leaders, not an obligation, and no decision has been made for Birmingham.

Any levy would also need to be designed with councils, businesses and the hospitality sector. The Bill still has to pass through both Houses of Parliament before any area could introduce one, so visitors will see no change to their hotel bills yet.