UK Domestic Visitor Levy

Lord Fox Excerpts

Monday 16th March 2026 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I certainly agree with the noble Lord that the Government want to see the tourism economy in Britain reach its full potential. The decision on whether to introduce a levy will be for mayors, and they will need to consult ahead of making those decisions. As a mayoral power, the ability to create a visitor levy will ensure that those with the best understanding of their region can tailor investment towards growing the local economy, whether that be in tourism or other areas, bearing in mind its needs, including those of the accommodation sector. This puts the power back in the hands of mayors to develop their own tourism economy in the way that they see fit, and it may lead to new visitor attractions and better quality of accommodation.

[Lord Fox (LD)]

My Lords, can the Minister confirm that, where there are no mayors, it will be up to local authorities whether to implement this levy? Will she undertake that, whether this levy is implemented locally or nationally, there is a consistent system of collection right across the country? Will she make sure that it is not as cluttered and badly designed as the Scottish system is now?

[Baroness Taylor of Stevenage (Lab)]

The power will be devolved to mayoral strategic authorities, because they cover the functional economic areas and mayors have strategic roles in driving growth. The power is principally linked to the growth remit that we have given our mayors and to the powers of mayors, and any revenue is expected to be invested in growth, an agenda for which mayors are responsible and accountable. They can use their mandate for change and take the difficult decisions necessary to drive it. That could include, for example, subject to consultation, giving a portion of revenue to local authorities to deliver the services that support growth, including in tourism and the visitor economy. It is important that mayors have those powers. It is for mayors to design the system that works for their local area.