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In an unprecedented move on 24 April 2025, Liverpool city center’s hotels voted to implement a £2 per night Visitor Levy on larger hotels and serviced accommodation blocks within the Accommodation Business Improvement District. This decision marks a significant shift from the previous funding model, which relied on a top-up on business rates to support the BID.
The implementation of this Visitor Levy is expected to generate £9.2 million in investment over a two-year period, which will not only benefit local businesses but also contribute to the growth of the local visitor economy. However, the Secretary of State has received a formal request from Whitbread plc to void the ballot result, raising concerns about the legality of the process.
To address these concerns, the City Council and Liverpool BID Company are required to respond to the Secretary of State and provide evidence that the ballot was conducted in accordance with legal requirements. Despite their confidence in the legitimacy of the ballot, both parties are committed to thoroughly examining all raised concerns and responding comprehensively by the deadline of 24 June 2025.
Meanwhile, the government has confirmed that the challenge to the ballot result does not suspend the implementation of the new BID levy, which officially took effect on 1 June 2025. In light of this challenge, the Council has agreed to hold any additional funds collected under the new levy pending the outcome of the dispute, with a commitment to refund levy payers if the Secretary of State decides to void the ballot result. Cllr Harry Doyle, Cabinet Member for Health, Wellbeing, and Culture, praised Liverpool’s hotels for their support of the Accommodation BID and reiterated the importance of a new national arrangement for Visitor Levies, as advocated by various Mayors across the country
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