Prime Minister Andy Burnham has expressed his determination to empower regional mayors to impose tourist taxes across their areas, even when opposed by local councils. Speaking at a recent virtual National Economic Council meeting with mayors, Burnham emphasized the need to remove obstacles that currently allow councils to block an overnight visitor levy if two-thirds of councillors oppose it. The tax, which proponents have pledged will be capped at 5 percent, is part of broader efforts to stimulate economic growth in northern regions of England.

Burnham acknowledged the “negative” messaging surrounding the proposed levy, which has been criticized by the hospitality sector. UKHospitality, a trade body representing the industry, warned that the tax could lead to 12 million fewer visits annually and result in approximately 33,000 job losses. Nonetheless, supporters argue that evidence from other cities, such as Amsterdam, suggests that tourist taxes have not significantly deterred visitors. A 2025 study published in the journal Tourism Management found that Manchester’s existing £1 per person, per night charge had not meaningfully impacted hotel occupancy rates.

Mayors Kim McGuinness of northeast England and Tracy Brabin of West Yorkshire highlighted the considerable opposition the levy has faced locally. Burnham stressed the importance of demonstrating to the public how the revenues would be reinvested. For example, Steve Rotheram, mayor of the Liverpool city region, plans to allocate proceeds toward a new Beatles attraction intended to enhance the visitor experience. Burnham said the levy would “lift the level” of cities, improve visitor offerings, and contribute to regional economic dynamism.

The prime minister signaled a commitment to swift progress, noting that legislation to enable mayors to impose the tax would be introduced in the coming weeks, with consultations to follow ahead of a potential rollout by January 2028. However, Lord Khan of Tooting, the mayor of London, called for accelerating this timeline to allow authorities to begin applying overnight stay charges by mid-2027.

The meeting occurred shortly before the government's upcoming budget announcement. Burnham indicated that it would include further fiscal devolution measures, designed to redirect public investment from the southeast toward northern regions. Dan Tomlinson, minister for growth, said the budget would provide additional grants to support mayors in addressing financial gaps and fostering development projects. Moreover, planned devolution reforms are set to grant mayors a share of business rates raised within their jurisdictions starting in the spring.

Burnham underscored the need to “rewire” aspects of the state to remove barriers to growth and enable regional leaders to pursue their ambitions more effectively, framing the tourist levy as a tool to rejuvenate local economies. The government aims to balance concerns about potential economic impacts with the opportunity to bolster regional development through reinvestment of the tax revenues.