Travellers planning a trip to England could face higher accommodation costs from 2028, after the UK government confirmed plans to introduce a new overnight tourist levy.
View of Big Ben tower and a lamp post on Westminster Bridge on a sunny day against blue sky with Union Jack flags at the forefront/By: Tatiana Sviridova/Getty Images
The proposed tax will give England’s 13 Mayoral Strategic Authorities, including Greater London, the power to introduce a levy on overnight accommodation in their respective areas.
The announcement was made by Chancellor John Healey during his Budget speech on Wednesday, 28 October 2026, as reported by The South African.
How will England’s new tourist tax work?
Unlike destinations that charge visitors a fixed fee per night, England’s proposed levy will be calculated as a percentage of the accommodation rate.
This means the additional cost could vary depending on where visitors stay and how much they pay for their accommodation. Hotels, guesthouses and other overnight accommodation providers could therefore be affected differently.
The levy will not automatically apply across England. Instead, individual mayors and leaders of strategic authorities will decide whether to introduce it in their areas and how the money raised will be spent.
According to The South African, the government has confirmed that local authorities will receive these powers from 2028. However, the exact rates and implementation details have yet to be determined.
For international visitors, including South Africans travelling to the UK, the proposed levy is another potential expense to factor into accommodation budgets when planning a stay in some of England’s major cities.
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