The Labor government is maintaining the course towards decentralization, the guideline of Andy Burnham’s mandate. On the agenda of the British Parliament is a proposed tourist tax (Overnight Visitor Levy). Revenues will have to finance growth investments, notably – but not exclusively – in the tourist economy, infrastructure and local services. Its adoption would mark a new concrete stage in theEnglish Devolutionreform of transfer of power to local agents in England, initiated under Keir Starmer.
Announced under the latter in the 2025 budget then included in the legislative program presented during the “King’s Speech” of May 13, 2026, the system was confirmed on September 10 by the government of Andy Burnham, following a public consultation open from November 2025 to February 2026. The government intends to have the system adopted during the current parliamentary session and provides that local authorities will be able to present their plans for using the revenue by March 2028.
The text provides for giving Mayoral Strategic Authorities (MSA, the equivalent of large metropolises in France) and Foundation Strategic Authorities (FSA, the equivalent of a union of municipalities) the power to introduce a tax on tourist nights. He specifies that mayors and FSA representatives will have to consult residents and traders before making a decision, and inform accommodation providers. They will be legally liable for the levy and may choose to pass all or part of it on to their customers.
In order to prevent the dissuasive effect that such a measure could have on the most modest holidaymakers, the percentage of the tax envisaged is proportional to the price of the night, and must not change depending on the period of the year.
While some elected officials have already spoken out in favor of the measure, others fear that it will lead to job losses in the tourism sector. “A modest, well-designed tax could provide an important additional source of financing to support growth”estimates the Mayor of London Sadiq Khan. For his part, Allen Simpson, managing director of UK Hospitality, the main British professional organization in the hotel and catering sector, raised the risk of abuse by decision-makers in the absence of a ceiling associated with the tax.
Already applied in Edinburgh since July 24, 2026, the tourist tax was also authorized by a Welsh law of 2025, the first communities being able to introduce it from April 2027.
In France, the tourist tax is set by the Public Establishments of Intercommunal Cooperation and by the municipalities, in the form of an actual tax or a flat rate. Its amount, which varies depending on the category of accommodation, must be defined before July 1 to be applicable on January 1 of the following year. Local authorities refer to a national legal scale, with floor and ceiling prices within which the authority sets its rate. In 2026, the amount of the tourist tax in a 3-star hotel must be between €0.50 and €1.70 per night and per taxable person.
Revenue from the tourist tax is subject to a sectoral allocation aimed at “promote tourist visits to the town”or to ensure the management and protection of green spaces, for tourist purposes. The community thus has a certain freedom over the use of revenue linked to the tax.
In certain municipalities, additional taxes earmarked for defined territorial projects may be added to the tourist tax. For example, the finance law for 2023 introduced an additional regional tax of 34% to finance rail lines. Holidaymakers from Bouches-du-Rhône, Var and Alpes-Maritimes thus contribute to financing the Société de la Ligne Nouvelle Provence Côte d’Azur, aiming to relieve congestion on the Marseille-Toulon-Nice network. In Île-de-France, tourists must pay an additional tax of 200% for the benefit of the Île-de-France Mobilités network. The addition of taxes can lead to significant sums: in Paris, in 2026, it is necessary to count €11.70 in tourist taxes per person per night in a hotel, admittedly 5 stars.
