UK Domestic Visitor Levy

Earl of Clancarty Excerpts

Monday 16th March 2026 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

The power will be devolved to mayoral strategic authorities, because they cover the functional economic areas and mayors have strategic roles in driving growth. The power is principally linked to the growth remit that we have given our mayors and to the powers of mayors, and any revenue is expected to be invested in growth, an agenda for which mayors are responsible and accountable. They can use their mandate for change and take the difficult decisions necessary to drive it. That could include, for example, subject to consultation, giving a portion of revenue to local authorities to deliver the services that support growth, including in tourism and the visitor economy. It is important that mayors have those powers. It is for mayors to design the system that works for their local area.

[The Earl of Clancarty (CB)]

My Lords, I welcome this levy, which should be used to help support what visitors come to see—namely, arts and cultural attractions. Do the Government recognise that reintroducing tax-free shopping would significantly boost the number of visitors and hotel revenue, as well as being a boon to the economy more widely, including creating thousands of jobs?

[Baroness Taylor of Stevenage (Lab)]

I always appreciate the noble Earl’s championing of culture and leisure, including the impact that that has on tourism, and I am grateful to him for the work that he does in that area. I am afraid the consideration that he asked about is very much the responsibility of His Majesty’s Treasury and not my department. However, we are proposing that revenues from the visitor levy will support local economic growth, including the visitor economy, and that can take the form of capital investment and the provision of growth-related services. Mayors can then take decisions informed by their consultation on how the revenue raise should be invested in their region.