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Liverpool City Council has expressed strong support for the Government’s recent move to grant devolved powers to regional mayors, enabling them to introduce an overnight accommodation levy. This decision follows a long-standing campaign led by Liverpool City Region Mayor Steve Rotheram, with backing from the council. The resulting policy aligns England with systems already in place in Scotland and various European countries, where such levies are reinvested to benefit tourism, culture, and infrastructure.
Currently, Liverpool operates a tourism tax through its Accommodation Business Improvement District (BID), which remains active until December 2027. The forthcoming levy, to be introduced thereafter, will notably cover the entire city region and include a specific charge targeting Air B&B properties. With over 60 million visitors every year contributing to a £6.25 billion visitor economy, Liverpool City Region stands to generate significant additional revenue. This revenue would be ring-fenced specifically to enhance cultural offerings, infrastructure, and the area’s competitiveness on a global scale.
Public opinion also appears favorable toward the introduction of such charges. For instance, pilot initiatives and surveys, such as those conducted in Manchester, indicate that as many as 70% of tourists support paying a modest fee provided it improves local services in a visible manner. Councillor Harry Doyle, Liverpool’s Cabinet Member for Culture, emphasized the importance of such support, pointing out that many locals are familiar with paying tourism taxes abroad. He commented, “Liverpool is a world class visitor destination and it’s vital that we support the sector here in the city… we want that support to be reciprocal.” He also highlighted the nearly decade-long campaign to secure government approval for this levy.
Liverpool City Region Mayor Steve Rotheram reflected on the importance of this step for cities like Liverpool, which have traditionally lacked access to the tools necessary to compete internationally. He stated, “Cities like Barcelona and Paris raise tens of millions each year through similar schemes – money that goes straight back into improving the visitor experience and supporting the local people who keep those destinations thriving.” Rotheram underscored the economic impact of the visitor sector, noting it supports over 55,000 jobs and generates in excess of £6 billion annually. The new levy could raise approximately £17 million per year for local reinvestment in culture, events, public spaces, and infrastructure, ensuring those who benefit from the city also contribute to its sustainability.
Secretary of State for Housing, Communities and Local Government Steve Reed also welcomed the announcement, highlighting the potential for mayors to reinvest funds into community priorities to support long-term growth. Moving forward, collaborative work between local authorities, businesses, and tourism stakeholders will begin to design a tailored overnight accommodation levy model for Liverpool City Region. The funds collected will be dedicated to key areas such as supporting major cultural and sporting events, enhancing infrastructure, boosting international marketing, and fostering business development and skills.
Faye Dyer, CEO of ACC Liverpool and a board member of the Liverpool City Region Destination Partnership, praised the government’s recognition of the visitor economy’s growth potential. She pointed out the importance of public-private partnerships in implementing the levy effectively and noted how the funds would be used to advance the region’s Destination Management Plan by attracting important large-scale events to stimulate economic growth. Laura Pye, Director of National Museums Liverpool, also supported the initiative, noting Liverpool’s rich and diverse tourism offerings including arts, culture, music, sports, and nightlife. She said, “By building on this and working with our business communities, a Tourism Tax can continue to further improve the region for local people and tourists alike.”
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