Centre for Cities responds to proposals for “Scottish-style” tourist tax powers for metro mayors

Centre for Cities responds to Government's proposals for “Scottish-style” tourist tax powers for metro mayors.

Andrew Carter, Chief Executive of Centre for Cities, said:

“The new tourist tax power for metro mayors brings England in line with its international peers – not to mention Scotland and Wales – where local areas are able to bring in direct tax revenue from visitors.

“Metro mayors need fiscal powers to deliver higher growth, and the tourist tax is a valuable step in that direction.

“The Government's proposal for a local, flexible percentage rate to be set by metro mayors will provide them with strong financial incentives to attract more visitors. Metro mayors can grow their tax base with every effective measure they take to bring in more visitors – measures that also boost national growth.

“It will ultimately be up to metro mayors and local leaders to shape and grow the local visitor economy. The flexible design allows for reduced tax bills for places where visitor demand is lower and accommodation is cheaper.”

Notes:

• London was until now the largest city in the G7 without the power to charge visitors any form of tourist tax (Devolution for London, 2025)
• A ‘Scottish-style' tourist tax would be more appropriate for England than a ‘Welsh-style' tax (Centre for Cities research, 2025)

Do get in touch if you have questions about the design of tourist taxes.