‘Overnight Visitor Levy would give us the chance to put more money back into the places that make our region what it is’

The Mayor of the East Midlands has welcomed plans for an Overnight Visitor Levy saying she wants more people to discover our “fantastic” region.

The Government today introduced the Overnight Visitor Levy Bill to Parliament – taking local leaders, such as Mayor Claire Ward, closer to getting new powers to invest more in the high streets, cultural sites and other attractions which make communities great places to live, work and visit.

The Government said the Bill marks the most significant step in making fiscal devolution a reality, with Mayors and leaders who know their areas best able introduce a small fee on overnight stays – and empowering them to use the money raised to benefit their area.

‘We have so much to be proud of’

Mayor Claire, who has pledged to consult with the region’s visitor economy sector before introducing any levy, said: “We have so much to be proud of across the East Midlands. I want more people to discover our fantastic towns and cities, our attractions and everything else our region has to offer. And I want the communities that welcome them to share in the benefits.

“An Overnight Visitor Levy would give us the chance to put more money back into the places that make our region what it is. That means supporting our attractions and independent businesses, and helping our high streets and town centres attract even more people.

“It’s important that local people and businesses are part of this conversation from the start. There will be full consultation before a levy is introduced, giving people the opportunity to help shape how it works and where the money raised could make the biggest difference. Those who know their communities best should have a real say in how they benefit.”

Mayor Claire has now arranged a series of engagement events to hear the views of people across the visitor economy sector, before launching a full consultation in the coming months.

Mayors who choose to introduce a levy will be able to invest in what makes their regions special. Any money raised will go back into local communities, supporting tourism, managing visitor pressures and improving life for local people.

The Government will continue to protect lower cost family breaks by requiring the levy to be charged as a percentage rate of the cost of accommodation, rather than as a flat fee, meaning those choosing cheaper accommodation will pay less.

Ten mayors, including Mayor Claire, have also committed that any levy introduced in their areas would be no higher than 5 per cent, providing certainty for visitors and businesses while preserving local choice.

The Government said the legislation builds on the significant commitment made at the Budget to drive good growth in every postcode, including through the Government’s high streets strategy and wider plans to rewire the state, and shift power from Whitehall back to local communities.

‘Levy will allow Mayors to invest into what matters most to local people’

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.

“This is 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.”

Overnight Visitor Levy Bill

Today’s Bill sets out how the levy will work, including who will be protected, how decisions will be made locally and how the rules will be enforced. The levy will only apply to the first 28 consecutive days of a stay, as longer stays count as long-term accommodation.

Protections will ensure occasional hosts, such as people who only rent out a spare room from time to time, will only pay the levy if they earn above a set amount. Local leaders and mayors will also be able to adjust this threshold to reflect their local tourism market.

The new powers to introduce a levy will bring England in line with places like Germany, Italy, the United States, the Netherlands and Canada, and let communities make the most of the tens of million overnight stays in England every year.