Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what criteria will guide decisions on whether an overnight stay levy is “modest” and appropriate for local areas; and will there be a cap.

The precise design and scope of the power for Mayors to introduce a visitor levy is still under development.

Mayors will decide whether to introduce a levy and, if so, consult on specific proposals. We expect Mayors to engage constructively with businesses and their communities to hear their concerns. This will inform their decisions regarding whether and how a levy will be applied and how any revenue is spent. Giving this power to local leaders who best understand their region enables them to tailor it to growing their local economies

The Government has published a consultation running until 18 February 2026, so that the public, businesses, and local government can shape the design of the power to introduce a levy that will be devolved to local leaders. The consultation seeks views on whether there should be a cap on the rate.