Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the oral contribution of the Minister for Creative Industries, Arts and Tourism during the debate on Hospitality Sector of 3 September 2025, Official Report, column 351WH, whether she plans to introduce a tourism tax.

The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth including through support for the local visitor economy, if they so choose.

We have published a consultation running until 18 February 2026, so that the public, businesses, and local government can shape the design of the power to introduce a levy that will be devolved to local leaders.

The precise design and scope of the power for Mayors to introduce a visitor levy is still under development and the Government welcomes engagement from the hospitality sector in developing this power through the consultation process.

The impacts of the levy will largely be determined by local decisions. Mayors will decide whether to introduce a levy and, if so, consult on specific proposals. We expect Mayors to engage constructively with businesses and their communities to hear these concerns. This will inform their decisions regarding whether and how a levy will be applied and how any revenue is invested.

Following consultation, we expect Mayors would publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment, informed by the consultation.