Chancellor Reeves to propose tourist levy up to 5% on stays, funding services amid industry pushback.

Chancellor Rachel Reeves is set to propose a tourist levy in her November 26 Budget, allowing English local mayors to impose a nightly tax on hotel and Airbnb stays, potentially up to 5%, to fund public services and infrastructure. The move, part of a broader devolution plan, follows similar taxes in Scotland and Wales. While the exact rate and structure remain pending, the tax aims to address tourism's impact on communities and generate hundreds of millions in revenue. The hospitality industry warns it could raise prices, fuel inflation, and harm an already strained sector, criticizing the policy as a reversal of prior government pledges. The budget may also include a "milkshake tax" targeting sugary drinks.