A new tourist tax could be coming to the UK - Travel News

by Simone Mitchell

Nov 28, 2025

In a move that could affect travellers from Australia and beyond, the UK government has proposed giving mayors in English cities the power to impose a new tourist tax on accommodation.

The new levy – aimed at anyone staying in a hotel, Airbnb, guest house, bed and breakfast, caravan park or campsite – will be decided locally, meaning final cost and rollout dates will vary from city to city.

Under the draft legislation, mayors will have discretion to set a “modest charge” on each night spent in paid accommodation.

At this stage, details remain under consultation, but early estimates suggest the levy could be quite minimal – for example, some reports suggest a flat fee of £1-£2 (about AU$2-$4) per night as one option.

Many Australian itineraries include at least seven nights in London at the start or end of a European holiday.

Supporters of the tax argue that tourist levies are standard in many global cities, and that the revenues would be used to “promote, develop and manage tourism”, support cultural and sporting activities, improve heritage sites and “enhance infrastructure”, according to parliamentary documents.

At this stage, uncertainty remains over exactly how and when the levy will kick in. The government has said a formal consultation will run until February 2026 before final details are locked in. London is expected to introduce the tax first, in the spring of next year.

This article originally appeared on escape.com.au. It has been reproduced here with permission.