Tourist tax plans for England set to be outlined
The UK government is expected to outline plans allowing local mayors in England to implement a tourist levy on overnight stays. The policy, intended to fund local economic growth, would be charged as a percentage of accommodation costs rather than a flat fee.
Why it matters
This policy represents a significant shift in local government funding and could impact the affordability of domestic tourism in England.
Image source, Getty Images Image caption, Cities like London are expected to use the new powers to introduce a levy on overnight stays
Plans to give mayors in England the power to introduce a levy on tourists are expected to be outlined on Thursday.
Under the proposals, a fee would be charged to people staying overnight and local leaders would decide how the revenue raised should be reinvested.
The idea - dubbed the tourist tax - was first raised by Sir Keir Starmer's government in November and is similar to a scheme running in Scotland.
The levy will be charged as a percentage of the cost of accommodation, rather than as a flat fee - a move the government argues will protect budget holidays.
In theory, there will be no upper limit - though ministers are said to believe mayors are unlikely to make it too expensive.
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