The UK government has confirmed that the planned overnight accommodation levy can be introduced by cities in England from 2028.
The plans will allow England’s 13 Mayoral Strategic Authorities, including London, to impose uncapped local accommodation levies.
UK chancellor John Healey said in his budget speech on Wednesday (28 October) that mayors and the leaders of strategic authorities will be given the powers to introduce the accommodation levy from 2028.
These will be charged as a percentage of the nightly accommodation rate rather than as a flat fee, with local leaders able to determine how the revenue is spent.
Joss Croft, CEO of travel industry group UKinbound, said: “The proposed implementation timeline for an England Overnight Visitor Levy is a significant red flag for the visitor economy.
“The industry needs a minimum 18-month implementation period once the details have been finalised. Any authority considering a levy must undertake robust economic impact assessments before implementation begins.”
Healey’s budget statement also confirmed that the UK’s rates of Air Passenger Duty (APD) will go up again from 1 April 2028, with the increase set to be in line with the Retail Prices Index (RPI), a measure of annual inflation. APD is already scheduled to rise in April 2027.
Mark Tanzer, CEO of UK travel association ABTA, described another planned APD rise in 2028 as “disappointing”.
“The UK already has some of the highest departure taxes in the world, and the government must ensure the UK remains a competitive place for airlines to develop the new routes that underpin growth and trade,” added Tanzer.