Mayors and local leaders in England will be given the power to introduce an Overnight Visitor Levy on accommodation stays, with revenue available for tourism, public transport, events, public spaces and local services. The levy would be calculated as a percentage of accommodation costs rather than a flat fee, a structure the government says will protect cheaper holidays from disproportionate charges. Mayors and leaders of Foundation Strategic Authorities would decide whether to adopt the levy and how to spend the proceeds, following consultation with residents and businesses. Hotels and other accommodation providers would collect and pay the levy to strategic authorities. A bill will be introduced in due course, and the government expects spending plans by early 2028. The announcement follows a consultation that ran from 26 November 2025 to 18 February 2026 and forms part of a wider fiscal devolution programme. Liverpool City Region Mayor Steve Rotheram said a levy could raise up to £18 million a year there, while other regional leaders said the proceeds could support culture, infrastructure and visitor services. The government said exemptions could be available for campsites, while temporary accommodation, shelters and refuges would not be subject to the charge.