Visitor levy moves a step closer for the West of England

Plans for an Overnight Visitor Levy in the West of England have moved a step closer, with the Government setting out its position following a national consultation earlier this year.

Under government plans, Mayors will be given powers to introduce and set the levy. The levy will be charged as a percentage of accommodation costs, rather than a flat fee, to make it proportionate to the cost of holiday stays.

In an open letter to businesses across the region late last year, Mayor Helen Godwin said that the “tourism and visitor economy sectors – including businesses across the hotel, hospitality, cultural and creative industries – are part of what makes our part of the world so special.” She acknowledged that there had been a challenging few years and promised that “nothing is happening overnight”, with a need to review best practice from elsewhere.

People and businesses across the West are set to be able to have their say in the coming months before plans are finalised – including on what proceeds might be spent on. A small levy on short-term accommodation providers, including Airbnb-style apartment stays, is well-established across Europe and around the world – with money raised often invested into transport and local improvements. The Mayor has previously called for the introduction of a short-term lets registration scheme, to ensure a more level playing field.

As a mayoral authority now in the top tier of devolution, the West of England is also set to benefit from future plans for more of the income tax already raised here to stay to be spent locally.

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Helen Godwin, Mayor of the West of England, said

"We are used to paying a visitor levy ourselves when we go on holiday to other countries, and now is the time to look at making sure we can invest more in what matters through a small charge on overnight stays here - with common-sense exemptions where we need them. The West Country has such an exciting future. New-and-improved and upcoming attractions like the Bristol Zoo Project and Aviva Arena can, with continued backing, be joined by more top-quality sites like the Birnbeck Pier in Weston-super-Mare and Bath Fashion Museum. We know that local people also want to see further improvements to our transport network, particularly our buses. More late-night services would help more people enjoy what our region has to offer - and enable workers to get home more easily - and so would some more funding for public spaces including in central Bath and Bristol, alongside new support for the sectors that support tourism. Things like this become possible sooner if we raise new funding through an overnight visitor levy. We should grab the chance to take more control of our future with both hands, because a few quid here and there can add up to some big change."

Councillor Kevin Guy, Leader of Bath & North East Somerset Council; Councillor Tony Dyer, Leader of Bristol City Council and Deputy Mayor of the West of England; Councillor Maggie Tyrrell, Leader of South Gloucestershire Council; and Councillor Ian Boulton, Co-Leader of South Gloucestershire Council, said in a joint statement:

“Tourism and connected industries like hospitality play an important role in our economy, supporting tens of thousands of jobs. That’s because places across the West of England are brilliant to visit.

“Our region needs and deserves more investment to become even better and the ability to raise revenue through a small charge on overnight stays is something that we’ve long campaigned for. We are committed to working closely with businesses across the tourism and hospitality sector to ensure that any future visitor levy is designed in a way that actively supports the industry, helps destinations thrive and delivers benefits for local communities.”

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Cllr Mike Bell, Leader of North Somerset Council said

“Our visitor economy is worth nearly £200m a year and employs a large number of local people and is an important sector for us. Thanks to high levels of VAT, the UK tourism industry operates at a disadvantage compared to European towns and cities. Holidays here attract 20 per cent VAT but in most of Europe it is just 5 per cent. We have to be careful not to make that price disadvantage worse. However, we must also ensure that the extra costs of supporting millions of visitors to our area does not place an undue burden on local finances, and if a tourism tax enables us to reinvest the income in services that make the area better for both visitors and our residents then it is right that is explored. Critically, funds from visitors to North Somerset should be invested in North Somerset.”

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Announcing the Government's position, Secretary of State for Housing, Communities and Local Government Angela Rayner, said

“Our amazing towns and cities, and our picturesque rural and coastal communities welcome millions of visitors every year – local leaders should have the power to make the most of that popularity. This measure will give mayors the choice to raise and reinvest funding where it’s needed most. It’ll help support the local services, public spaces and attractions that both residents and visitors rely on, with decisions taken by people who know their area best.”

The move follows the Mayor and council leaders’ Growth Strategy, published in September 2025. The everyday economy, including tourism and hospitality, was recognised as at the heart of life in the West of England: the country’s fastest-growing regional economy. Here in the West, those sectors have seen the highest job growth of any region in the country during the last decade, and currently provide 57% of jobs in the region.

Visit West announced last summer that the visitor economy is now worth a record £2.7 billion annually – supporting 43,000 jobs in the region. Compared to 2023, in 2024 international visitors stayed longer and spent more. Tourism-supported businesses’ turnover in the West that year was £3.43 billion. 30% of all spending by visitors was attributed to food and drink and 33% to retail.

Council leaders, including Councillor Kevin Guy in Bath & North East Somerset (B&NES) and Bristol leaders past and present, have long campaigned for the ability to raise revenue through a small charge on overnight stays to help maintain and enhance our area’s offer.

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As founding members of High Streets UK we issued a joint statement following the announcement of the UK's Visitor Levy

"While our members have real concerns over the impact an Overnight Visitor Levy will have on a tourist economy already under significant cost pressure, handing mayors and local leaders the power to set an overnight visitor levy reflects what High Streets UK members have long argued: local leaders and local businesses are best placed to decide how tourism revenue gets spent. As this is an England-specific announcement, we would also encourage Government to learn the lessons from how similar levies have been implemented in Scotland and Wales, to ensure the roll-out works in practice. We want to see more detail on how Government will guarantee that levy receipts are retained locally and reinvested in the places that generate them, delivering the improvements to the high street that Government is promising. High Streets UK members want to work hand-in-hand with national Government and local leaders to make the roll-out of the Levy a success, ensuring businesses have a genuine say in how funds raised locally are spent and that the impact on our tourist economy is beneficial"