England’s mayors may soon be given the power to introduce an uncapped tourist tax, a proposal set to be discussed in detail on Thursday. The tax, known as the Overnight Visitor Levy, would charge visitors based on a percentage of their accommodation costs rather than a fixed fee. This approach, according to the government, could help protect budget travelers by avoiding steep flat charges. Unlike in Wales, where the tax is capped at £1.30 per person per night, England’s plan would allow local leaders to set their own rates without an upper limit. However, ministers believe that mayors are unlikely to impose excessively high charges. The proposal was first introduced by former Prime Minister Sir Keir Starmer’s government in November and mirrors a similar system already in place in Scotland. The policy was also outlined in the King’s Speech in May, and it is part of a broader effort to devolve more powers to local leaders. The government expects local authorities to decide how the revenue from the tax will be reinvested, with a target of having plans in place by March 2028. Housing Secretary Angela Rayner is set to meet with mayors to discuss the next steps, and a government source emphasized that “it will be up to local leaders and local voters” to determine the appropriate level of the tax for their areas. Regional mayors argue that the tax is necessary to raise additional income to support local economies and fund public services. For instance, Manchester’s former mayor, Andy Burnham, introduced a £1 per room, per night fee in 2023 to attract more visitors and fund city improvements. However, the UK Hospitality trade body has raised concerns, warning that such taxes could make holidays more expensive at a time when many households are already struggling with high living costs. They argue that additional charges might harm the competitiveness of the UK tourism sector and discourage domestic and international visitors, especially families and young people. Tourist taxes are common in many parts of the world, including cities like New York, Amsterdam, and Rome, where overnight charges are used to fund local services. In London, Mayor Sir Sadiq Khan has supported a similar tax, with estimates suggesting it could raise over £350 million annually for the capital. In Scotland, Edinburgh became the first city to implement a 5% levy on overnight stays, with a cap on the number of nights charged. Meanwhile, Glasgow is set to introduce a 5% levy in 2027. The lack of a cap in England has raised concerns, with UK Hospitality’s chief executive warning that an unlimited tax could lead to job losses in the tourism sector.