His first significant action could be a charge for overnight stays in Hull but, our visitor levy correspondent Angus Young asks, will he do it?
As part of last November’s budget, the government announced it was giving new powers to mayoral authorities to create new overnight visitor levies. Various versions of a so-called tourist tax already exist in some places. Some cities have introduced a visitor charge where hospitality venues in a defined area have agreed to it.
In Manchester, a £1 per room, per night charge has been in place since 2023 in participating hotels and serviced apartments in the city centre. Similarly, a £2 levy is in place in eligible accommodation in Liverpool. (The Manchester tourist tax has so far proven popular and successful – Ed.)
The idea behind these schemes and the government proposal currently out for public consultation is for funds raised from charges to be reinvested back into the local visitor economy. That could be anything from creating new physical infrastructure to improving transport and even funding new festivals and events. Potentially, any new levy would apply to visitors using hotels, holiday lets, bed and breakfasts and guest houses.
Announcing the new powers, government minister Steve Reed said: “ Tourists travel from near and far to visit England’s brilliant cities and regions. We are giving our mayors powers to harness this and put more money into local priorities so they can keep driving growth and investing in these communities for years to come.”
Tourism in both Hull and East Yorkshire has become big business in recent years with the city recently named as one of the 25 best places in the world to visit in 2026 by the National Geographic Magazine. Recent data published by the Visit Hull and East Yorkshire partnership back this up. According to latest research, there were 12.1 million day and overnight visitor trips to the region during 2023 and a total spend of £815.9m. Meanwhile, the region’s visitor economy supported 21,263 jobs.
So what does Hull and East Yorkshire Mayor Luke Campbell make of the new powers given to him by the government? So far, he hasn’t exactly been enthusiastic about it. “My instinct is that a mandatory levy probably isn’t right for the region,” he said “I am concerned that adding extra costs for visitors could damage businesses that are already struggling. I fully support efforts to drive local growth but I don’t think putting another charge on people coming here is the best way to boost the economy. My test is simple: does it help local businesses and bring more people into the area? If not, I won’t back it.”
He has asked officers at the mayoral authority to provide a full assessment of the levy in partnership with the region’s two local councils and the tourism and hospitality sector. Businesses working in the sector are currently being invited to have their say by sending their views directly to the authority. He has also received assurances from ministers that he’s not required to introduce a levy and won’t risk having future government funding reduced if he doesn’t go-ahead with one.
As Reform UK pledged to make £90bn worth of tax cuts before last year’s general election, perhaps the Mayor’s stance is not particularly surprising. But is he right?
Without at least operating an experimental mandatory levy for a limited time, it will be impossible to judge whether it is a success or not. Alternatively, introducing a voluntary charging scheme is really a cop-out as Mayors are meant to lead. Seven Labour Mayors – including London’s Sadiq Khan and Manchester’s Andy Burnham – have already welcomed the new powers.
Will Hull and East Yorkshire’s Mayor buck the trend? We shall see once the consultation closes on February 18.