“A modest levy is money that would stay local and be reinvested in what makes our region stand out,” said Liverpool City Region Mayor Steve Rotheram, after ministers confirmed plans to let mayors charge overnight visitors. The move was published on GOV.UK on 25 November and lands a day before the Chancellor’s Budget.

Under the proposal, mayors could choose to apply a small fee to overnight stays in hotels, holiday lets, B&Bs and guesthouses. Local leaders would decide if it’s right for their area, the rate, and any discounts, with a 12‑week consultation running to 18 February 2026. The Ministry of Housing, Communities and Local Government says England sees more than 130 million overnight visits each year and argues that reasonable fees have little impact on visitor numbers.

The policy is framed as part of devolution. Secretary of State Steve Reed said the powers are designed to put more money into local priorities and support growth. It also brings English cities into line with international destinations where visitor charges are routine, from Paris to New York and Milan.

In the North East, Mayor Kim McGuinness called it the start of a new era for events and festivals, pointing to world heritage sites at Hadrian’s Wall and Durham Cathedral and the Tyne bridges and gorge. “Even a small amount on each stay will transform the welcome we can give,” she said, adding the region aims to double the size of its visitor economy over the next decade.

West Yorkshire Mayor Tracy Brabin welcomed the step, saying mayors have made a strong case for asking visitors to pay a small fee to help drive growth. She said the extra funding would help make towns and cities even better places to visit while backing local firms and jobs.

York and North Yorkshire’s Mayor David Skaith described a levy as a “gamechanger” across a region that sees around 41 million visits a year. Recent modelling reported by the Yorkshire Post suggests a £2 per‑room charge could raise about £52 million annually for transport, local services and the visitor economy.

Greater Manchester’s Andy Burnham said a levy would help sustain growth over the next decade. “I’m proud that nearly two million people from all over the world choose to visit Greater Manchester every year. The money they spend contributes about £9 billion annually to our economy, supporting over 100,000 jobs. The levy will allow us to invest in the infrastructure these visitors need, like keeping our streets clean and enhancing our public transport system through later running buses and trams, making sure every experience is a positive and memorable one.”

Manchester already runs a £1‑a‑night City Visitor Charge through its accommodation business improvement district. According to the Guardian, the scheme raised around £2.8 million in its first year. The new government powers would allow a mayor to design a wider levy across the combined authority, not just the city centre.

Liverpool’s hotels have voted for a £2 nightly charge via their Accommodation BID, due to apply from June 2025, as confirmed by BBC News and the city region’s destination partnership. Ministers say a mayoral levy could support major events such as UEFA EURO 2028 and improve the basics visitors and residents rely on, from public spaces to transport.

Government papers say any scheme would exclude emergency accommodation, homeless shelters and registered Gypsy and Traveller sites used as primary residences. Mayors could set further local exemptions to fit their economies, and-crucially-would not need Whitehall approval to spend the proceeds on local priorities.

The announcement arrives on the eve of the 26 November Budget. Ministers trail plans to back public services and growth, while Northern leaders will look for signals that central funding will match the local effort they intend to raise through any levy.

For hospitality businesses, the detail now matters: how the fee is collected, how rates are set, whether there’s a cap, and what the money pays for. The ministry’s view is that modest charges don’t put visitors off; the test will be whether guests see the difference-cleaner streets, better transport and strong event calendars-across our cities and towns.

Residents, businesses and tourism groups have until 18 February 2026 to respond to the consultation. We’ll track how each combined authority shapes its proposal-and what it means for nights out in Newcastle, weekends in York and city breaks across Greater Manchester and West Yorkshire.