• Levy will unlock funding for tourism and cultural infrastructure and drive regional growth
• Legislation will give regional mayors the freedom to design and introduce a locally administered visitor levy
• Mayor Steve Rotheram welcomes Government’s decision following campaign

Liverpool City Region Mayor Steve Rotheram has welcomed the Government’s decision to grant devolved powers for regional mayors to introduce an overnight accommodation levy.

Mayor Rotheram has been campaigning on the issue for a number of years and recently led a coalition of Mayors from across England in lobbying the Government for a locally administered levy on overnight stays.

The campaign’s success ensures England will be in step with similar systems in Scotland and other European countries where such a levy is reinvested in tourism, culture, and infrastructure.

Mayor Rotheram emphasised this new power will allow regions to inject hundreds of millions pounds over the coming decade to build a more sustainable future for their visitor economies.

Liverpool currently has a form of tourism tax operated under the city’s Accommodation BID, which runs until December 2027. The new levy will be introduced after that date and will feature two important distinctions – a levy for the entire city region and a levy for Air B&B properties.

The Liverpool City Region welcomes more than 60 million visitors annually, supporting a £6.25 billion visitor economy. A modest overnight accommodation levy would raise many millions of pounds locally each year – funding that would be ring-fenced to support cultural events, enhance infrastructure, and strengthen the region’s global competitiveness.

International examples and pilot schemes in England have shown strong public support, with surveys in Manchester revealing that 70% of tourists are willing to pay a small charge if it visibly improves services.

Secretary of State for Housing, Communities and Local Government Steve Reed said: 

“Tourists travel from near and far to visit England’s brilliant cities and regions.

“We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”

Mayor of the Liverpool City Region, Steve Rotheram, said: 

“This is something I’ve been calling for since I was first elected back in 2017. For too long, cities like ours have been expected to compete on a global stage without the basic tools that other places take for granted.

“Cities like Barcelona and Paris raise tens of millions each year through similar schemes – money that goes straight back into improving the visitor experience and supporting the local people who keep those destinations thriving. Until now, we’ve had no such option. So I’m pleased that the government has listened and acted – giving areas like ours the powers we need to support and grow our economies in a sustainable way.

“Our visitor economy is worth more than £6bn a year and supports over 55,000 local jobs. A modest levy could raise up to £17m annually – money that would stay local and be reinvested in the things that make our region stand out: our world-class culture, iconic events, vibrant public spaces and the infrastructure that ties it all together. It’s only fair that those who enjoy everything our region has to offer play a small part in helping to sustain it.”

Work will now begin with local partners, businesses, and tourism stakeholders to co-develop a tailored overnight accommodation levy model for the Liverpool City Region. Funds raised will be ring-fenced for local reinvestment, with priorities including:

• Supporting major cultural and sporting events
• Enhancing visitor and community infrastructure
• Boosting international marketing and competitiveness
• Developing skills and supporting business growth

Faye Dyer, CEO ACC Liverpool and board member of Liverpool City Region Destination Partnership, commented: 

“This is a welcomed acknowledgment by the government that the UK’s visitor economy has significant growth potential, providing it has the right investment.

“We are looking forward to working with the city region, adopting a partnership approach between the public and private sector, to develop the most effective way to introduce and implement an overnight accommodation levy.

“The Liverpool City Region Destination Partnership will be able to best use these funds to deliver the region’s Destination Management Plan, including securing increasing numbers of strategically important large-scale business, entertainment and sporting events, that will help accelerate Liverpool’s inclusive economic growth and international ambitions.

“Building on the excellent work of the Liverpool Accommodation BID, which currently runs until June 2027, we can use existing knowledge and experience to ensure future success.”

Laura Pye, Director of National Museums Liverpool said,

“Liverpool City Region has a vibrant and varied tourism offer, including arts, culture, music, sports, nightlife and more – which is one of the reasons it’s an increasingly popular choice for tourists.

“Historically we are a city which embraces visitors from the world over. We’ve already seen through the Accommodation Business Improvement District (ABID) model the benefits for the visitor economy by being able to invest in marketing, subvention and cultural activities.

“By building on this and working with our business communities, a Tourism Tax can continue to further improve the region for local people and tourists alike.”