UK government to give more powers to mayors to introduce tourist tax: Report

'Tourist tax' to allow mayors in England to impose uncapped levy based on cost of hotels, bed, breakfasts and other types of accommodation rather than flat fee

Local authorities will be given more power to charge tourists a fee as part of the government's overnight visitor levy plan, according to media reports on Thursday. The plan, which has been dubbed a "tourist tax," will allow mayors in England to impose an uncapped levy based on a percentage of the cost of hotels, bed and breakfasts and other types of accommodation rather than a flat fee, the BBC reported. The idea was first raised in November under former Prime Minister Sir Keir Starmer's government, and is similar to schemes running in Scotland and other European destinations. According to the report, despite this authority, ministers are said to believe mayors are unlikely to make it too expensive, with budget holidays protected by the fact that it is not a flat fee. Meanwhile, hospitality leaders have already warned that jobs are now at risk because of the proposals. The Guardian reported that Housing Secretary Angela Rayner is expected to meet with mayors later Thursday to explain that the levy will be charged as a percentage of the cost of accommodation, rather than as a flat fee, to protect budget holidays.