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UK Weighs New Overnight Visitor Tax, Supporting Local Services

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Business Honor | UK Plans Overnight Visitor Tax

Business Honor
05 December, 2025

England may add a small nightly visitor fee, supporting transport and infrastructure, slightly raising costs but improving overall travel experiences.

Travelers planning a trip to the UK may soon face higher hotel expenses, as local governments across England plan to introduce a new overnight visitor fee. It comes at a time when the strong British pound has already increased the cost of travel for numerous foreign travelers, especially those from the US. The planned tax would allow mayors and local authorities to charge a nightly fee for hotels, guesthouses, bed and food, and even vacation rentals. According to a government press release, the goal is to collect more funds for important local needs like public transportation, infrastructure repairs, and development of communities.

Steve Reed, the UK Secretary of State for Housing, Communities, and Local Government, stated that the new tax could help cities better support the services that tourists depend on. "Tourists travel from near and far to visit England's great cities and regions," according to Reed. This year, Edinburgh became the first city in the UK to introduce such a tax, potentially prompting others to follow suit. Each city or region will decide whether to implement it according to local need.

The idea is currently in the discussion stage, which is expected to be finished by February 2026. Government authorities point out that studies show that the right visitor taxes have no impact on tourism statistics. England currently receives over 130 million overnight tourists each year. The tax could slightly raise travel prices, but supporters believe it will lead to better services, facilities, and city planning, setting the foundation for a future where visitors enjoy smoother, smarter, and more environmentally friendly travel experiences across the UK.