In Bath and Cambridge local government leaders have reopened the debate on tourist taxes UK or levies. They hope to place financial responsibilities of tourism damage onto visitors rather than local residents. People’s Representatives Call on the Government. BANES (Bath & North East Somerset) Council leader Kevin Guy and Cambridge City Council leader Cameron Holloway jointly wrote to references Local Government Secretary Angela Rayner. They say there is an urgent need for a tourist tax throughout the UK in heritage-rich cities.
Council Leaders Urge Government Action
Both Bath and Cambridge welcome millions of visitors each year around 6 million to Bath, over 7 million for Cambridge. This significantly strains public services and infrastructure of both cities.BANES Councillor Manda Rigby said that to levy a tourist charge in Bath or Cambridge reflects the principle of fairness: tourists enjoy local amenities and should contribute towards their upkeep so that local taxpayers are not left bearing all associated costs.
Current Framework: Accommodation BID Levies Only
While interest grows, no standard exists yet in English law permitting councils to impose a general tourist tax UK. The only way to levy visitor fees is through the Accommodation Business Improvement District (BID), which has the effect of charging exclusively for overnight stays.
The Ministry of Housing, Communities and Local Government confirms that this still remains a legitimate outlet for councils to charge visitor payments at present. UK Stance on a Tourist Tax The National Government remains wary of anything like a general tourist tax Bath or Cambridge because it is worried about making the UK look like an expensive place to visit. It says that Britain’s concern is to preserve its global reputation as a tourism destination long into the post-Brexit era. But government figures show that overnight visitors bring much greater economic benefits, spending some £151 per visit against only £45 per day tripper suggesting that a tourist tax UK aimed at overnight accommodation may be both just and financially sound.
Comparative Models: Scotland and Wales
Wales’ Overnight Stay Levy
Wales enacted the Overnight Stay Levy act in July 2025, which gives local councils the authority to levy an overnight visitor charge. The typical rate is 0.75-to 1.30 pounds per person per night. The overnight visitor charges fund visitor oriented infrastructure and production little leisure funds Expected to deliver up to £33 million annually, they are currently under consultation in 2027. However 37399
Scotland’s 5% Accommodation Levy
Under the 2024 Visitor Levy (Scotland) Act which came into effect Scotland is now the third part of the UK, after England and Northern Ireland to give local governments power to levy tourist taxes UK. Plan for Edinburgh to levy a 5% charge–on overnight stays only, 2026-cost of; excluding extras and not including five nights each year as from 2026–with an anticipated turnover of around £50 million annually. However, other areas such as Glasgow, the Highlands, and Orkney are also examining the possibility of levying such a taxtheir own version of the levy will be very academic in scope
Local Reception & Stakeholder Concerns
Those in favor of levying tourist taxes UK say the program ensures tourism revenue covers its own costs. However, some who are opposed voice the fear that another Bath or Cambridge may deter all kinds of tourists including those from abroad and those here in Britain, and in particular these visitors who come on day trips from major cities close by like London Says Kathryn Davis, Visit West’s CEO: extensive consultation with the business, not least on the economic consequences above, is really important.
Both Manchester and Liverpool have introduced levy paying approximately £1–£2 per bed per night: city projects have gained millions but tourists have not been put off by this, suggesting that a carefully targeted tourist tux can be effective in practice.
Local Economic Impact in Bath and Cambridge
According to BANES’s statistics, Bath’s tourism industry creates some £150 million a year and sustains over 8,200 jobs. Yet the inflow of 1.75 million overnight and three million day-trip visitors a year pushes the local infrastructure to breaking point. Cambridge experiences similar challenges, seeking to reap economic benefits while maintaining the quality of life for its communityHe has committed to a policy of zero tolerance towards illegal practices.
What Happens Next
- July 2025: local councils in Bath debate the tourist tax proposal; internal reviews meanwhile continue in Cambridge and elsewhere.
- Late 2025–2026: Any potential future levy plans will take shape after discussions with the local community and stakeholders.
- 2027 onwards: Wales gets the go-ahead, with Scotland rolling out more and more while English councils await deciding tourist tax powers as to whether BID The following pages examine the advantages and disadvantages of UK
Advantages Disadvantages of a Tourist Tax
Brings in money straight for infrastructure and services Increased costs might discourage people from taking their holidays Targets tourists, not locals Might switch tourism pattern from night time stays to day trips Cost is more aligned to successful models from the rest of Britain Adds complication for small providers of holiday accommodation promotes sustainable tourism focus with a concerned eye to heritage involving heritage concerns in sustainable format
National Policy Signals
UK government has previously launched a Call for Evidence seeking views on short term rentals legislation–a hint that government interest in sustainable tourism management may be growing, insert the tourist tax UK. Long-term goverment reviews by the Department for Digital, Culture, Media & Sport have identified the need for new funding mechanisms to support pressures on heritage destinations
Final Thoughts
Bath and Cambridge are putting under the spotlight the idea of a tourist levy Bath Cambridge in line with wider UK policy in Scotland and Wales. The success of these levies (should they go ahead) will depend on legislative changes, conscientious design, open engagement with local communities and making sure that there is a fair distribution of economic benefits. At present, both cities are entering a critical period for consultation and review.
The post New Tourist Tax Proposal in UK: How England, Scotland and Wales Are Responding to Visitor Levies in Bath and Cambridge, Find out now appeared first on Travel And Tour World.July 17, 2025 at 10:29PM.jpeg){kind=small}
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