Peak District Mayor and tourism chief react to Budget levy on overnight visits
East Midlands Mayor Claire Ward and the Peak District’s tourism leader have broadly welcomed the Government’s announcement of a new tax on overnight visitors, but say there is still much work to do to understand the impact on one of the region’s biggest economic drivers.
With Chancellor Rachel Reeves under pressure to limit increases in salary taxes in the Budget on Wednesday, November 26, she has looked to new sources of revenue from consumer spending, including the proposal for a new fee applied to overnight trips.
The idea will be explored in a public consultation running through to February – so many questions are still to be answered – but the Government has been keen to promote the benefits of the levy, such as allowing regional mayors to make greater investment in transport, infrastructure and other aspects which could help the visitor economy grow.
Steve Reed, Secretary of State for Housing, Communities and Local Government said: “Tourists travel from near and far to visit England’s brilliant cities and regions.
“We’re 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.”
It would be up to mayors to introduce and set the charge for their region, a power already used by counterparts in global destinations like New York and Paris, and the levy would apply to hotels, holiday lets, bed and breakfasts, and guesthouses.
Ms Ward said: "We want more people to visit the East Midlands, and the power to introduce the new visitor levy would give us more money to invest locally to support additional transport and visitor attractions and to address parking challenges – all at a very minimal cost to those who come to visit, but with locals feeling the benefits.
“There is no sense in Westminster being in charge of determining what we need: we know, and we will get on with it.”
According to the Government, England attracts over 130 million overnight visits each year, and though estimates vary the Peak District likely accounts for around 5million, with significant growth since the end of the Covid pandemic.
Tourism in the Peak District was worth a record £3.58billion to the local economy in 2024, making it a key source of employment and investment.
Even if the promising upsides to a levy can be delivered, many of the business owners making up the visitor economy will be concerned the impact on pricing and any administration costs in collecting the tax.
Jo Dilley, managing director of tourism board Visit Peak District & Derbyshire, said: “We look forward to working with the Mayor and our industry partners to secure the best outcomes for the sector. Any visitor levy must be affordable, retained locally, and aligned with our wider growth strategy.
“With businesses already facing rising operating costs, any new measure must be introduced carefully to ensure it strengthens – not burdens – our visitor economy.”
She added: “We therefore welcome a full consultation with businesses to help shape an effective approach to implementing a levy. We also want to see a clear strategy demonstrating how it will support visitor economy businesses.
“We remain committed to working with the Mayor to ensure that any approach reinforces her ambition for a thriving and competitive East Midlands tourism sector.”
There will be wider considerations still to be determined too. Will the Peak District receive a fair share of any investment if the revenue is to be redistributed right across the East Midlands mayoral region, and how will that share be calculated?
Ms Ward said: “It is very early to know the details of how it will work - indeed the Government is launching a 12-week consultation asking businesses, communities and others with an interest in the measure to have their say on how it should work, and we will examine that feedback with interest.
“This is a significant change and it's important to consult. We are working with the sector to build Visit East Midlands, and I look forward to engaging with the same partners to ensure that any levy is introduced in a way which works for the local visitor economy.”
For more details and ways to participate in the consultation, go to gov.uk/government/consultations/overnight-visitor-levy-in-england.