On 26 November 2025, the government launched a consultation on its plans to give mayors in England powers to raise a local visitor levy on overnight accommodation. Visitor levies are expected to become operational in Scotland later this year and from 2027 in Wales.   

The government makes a number of proposals in the consultation document, including that mayors will have the power to set levy rates and exemptions within their areas, subject to first undertaking a formal public consultation on the introduction of a levy. Views are also sought on extending the power to raise a visitor levy to Foundation Strategic Authorities.  

In its response to the consultation, ICAEW has warned that allowing mayors to create their own schemes could risk developing a “patchwork of different rules that burdens national businesses and delays revenue collection.” 

In the interest of consistency, ICAEW is calling for the government to legislate for a standard framework that would be consulted on once at a national level. Local leaders could then either: 

• adopt the national model through a fast-track approval process after a set notice period; or 
• undertake a full local consultation if they wish to diverge from the national model to account for unique local circumstances.  

To ensure clarity, fairness, and administrative simplicity, ICAEW recommends: 

• A flat-rate levy per night, which offers greater transparency and avoids complex apportionment of package prices.
• Nationally defined exemptions only, to avoid creating a “postcode lottery of tax rules” through regional inconsistencies and compliance burdens.
• A 28-day national cap to align with existing VAT rules regarding long-stay accommodation.
• A minimum 12-month notice period to ensure implementation and/or to allow for existing advance bookings to fall outside the scope of the levy.
• A centralised collection model where the levy is paid via a national portal or “clearing house” and then distributed to the relevant local authorities.