Metro Mayor Steve Rotheram is leading the calls for government to devolve further powers to the city region
People heading into Liverpool(Image: Colin Lane/Liverpool Echo)
Metro Mayor Steve Rotheram is leading the calls for the government to allow areas like the Liverpool City Region to adopt a tourist tax. A coalition of mayors from across England – led by Mr Rotheram – is calling on ministers to grant devolved powers to explore and implement a visitor levy in their regions.
The move comes just over a month after Liverpool’s hotels and serviced apartments voted to introduce an extra £2 overnight charge for people staying in the city. The group of mayors, representing nearly 21 million people, said a tourist tax in their regions would unlock vital funding for tourism and cultural infrastructure, empower regional growth, and reduce dependence on central government funding.
In the Liverpool City Region, which hosts over 60 million visitors annually, a visitor levy could raise nearly £11m per year to build on the success of international events like Eurovision 2023, which generated £54 million in direct economic impact. Mr Rotheram said a small charge on overnight stays “would give us the power to reinvest directly into the things that make our area so special.”
In a joint statement, the mayors of Liverpool City Region, Greater Manchester, London, West Yorkshire, the West Midlands, and the North East urged the government to consider including enabling legislation in the forthcoming English Devolution Bill or a specific Finance Bill, which would give local authorities the freedom to design and introduce a locally administered visitor levy.
Inside the Holiday Inn Express on Duke Street(Image: Colin Lane/Liverpool Echo)
Currently, English legislation does not allow cities to do so. In April, members of the Liverpool Accommodation Business Improvement District (ABID) agreed to proposals to add £2 to the bills of those staying in city hotels.
According to ABID, a £2 city visitor charge is projected to bring in £9.2m over two years, of which £6.7m will go towards supporting the city’s visitor economy through a subvention fund.
The £2 charge will be managed and administered by hotels and serviced accommodation, either when guests check in or at the end of their stay. The business improvement district model is the only one that allows for an overnight charge to be implemented in England.
Metro Mayor Steve Rotheram(Image: LCR Combined Authority)
It allows for the raising of a levy under government legislation and requires a clear and transparent business plan for the proposed use of those funds. Regional mayors want the government to agree to their request to help support major cultural events and improve infrastructure vital to the visitor economy.
The group is now calling for rapid engagement with the Treasury and Department for Culture, Media and Sport, alongside input from business and tourism stakeholders, to move the proposal forward and shape a more sustainable future for England’s visitor economies.
Mr Rotheram said: “The Liverpool City Region is a global icon of creativity, culture, and character – attracting more than 60 million visitors every year and supporting a £6.25 billion visitor economy.
“That’s something to be incredibly proud of, but it also comes with pressures on our infrastructure and services.
“A small charge on overnight stays – the kind most of us wouldn’t think twice about when travelling abroad – would give us the power to reinvest directly into the things that make our area so special. From unforgettable events to the everyday essentials that support them, it’s about keeping our region vibrant, competitive, and ready to welcome the world.”