by Mia Taylor
Last updated: 4:20 PM ET, Thu December 4, 2025
Visiting the United Kingdom is already a costly proposition thanks to the strength of the pound against the U.S. dollar.
So, it may not exactly be welcome news among UK fans that trips to the country are poised to get more expensive, still.
Local governments throughout the UK are considering a new tax on overnight stays. That includes popular tourist haunts like London, along with secondary locations like Manchester. The tax in question would be added to the cost travelers pay to say at hotels, along with guesthouses, bed and breakfasts, and even holiday rentals.
A press release issued by the UK government website says the new tax would allow England’s mayors to invest in civic needs, such as transport, infrastructure and more.
The UK’s Secretary of State for Housing, Communities and Local Government, Steve Reed said, the tax will give local communities much needed funding.
“Tourists travel from near and far to visit England’s brilliant cities and regions,” Reed said in a statement. “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."
The new tax would also put UK cities on equal footing with top tourist destinations around the world, such as New York, Paris and Milan, where charges on short-term trips are already common. In addition, in January, the Scottish capital city of Edinburgh became the first city in the UK to charge such a fee for visitors staying overnight.
To be clear, however, the tax is not automatically being implemented in every city across the UK. Rather it will be up to mayors and other local leaders in each municipality to introduce the new fee if “it’s right for their area." Moreover, the proposed overnight tax is currently going through what's known as the consultation phase. That process is expected to conclude by February 2026.
The UK government’s press release also pointed out that research shows reasonable fees have minimal impact on visitor numbers. England attracts more than 130 million overnight visitors annually.
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