City region Mayor Steve Rotheram gains vital ground in push to replace Liverpool BID Company’s visitor levy with his own ‘tourist tax’. Tony McDonough reports
Mayor Steve Rotheram has moved a step closer to introducing a Liverpool city region ‘tourist tax’ he claims could raise up to £11m a year.
In November 2025 Chancellor Rachel Reeves indicated she would grant new powers to devolved authorities to implement a visitor levy on people staying in hotels and Airbnb accommodation.
And in the King’s Speech in the last few days the Government confirmed the go-ahead for the policy and Mr Rotheram says he is determined the new levy is introduced “as soon as practicably possible”.
However, this would mean it would replace an existing overnight levy administered by Liverpool’s Accommodation BID (ABID), currently set at £2-per-night. This is due to expire in December 2027.
Liverpool BID Company which runs the ABID along with two other city centre BIDs, has urged the Government to slow down on the proposal which it claims have not given the industry a voice, is too vague and adds another layer of bureaucracy and taxation.
Chief executive of the BID, Bill Addy, believes its levy is better because it is private-sector led and has allowed the return of a so-called subvention fund which offers support to major events and conferences being held in Liverpool.
Speaking at a round table event in April, organised by LBN with law firm Gregory Abrams Davidson, Bill said: “ABID works with 85 hotels to bring back that subvention fund but led by the private sector.
“That £2 per night room charge will deliver around £4.5m this year and it enables us to bring back the subvention fund and bring back midweek conferences to the city. That visitor levy is vitally important for the city.”
Liverpool BID and Manchester BID sent a joint letter to the Government urging it to “slow down and think this through” before implementing the new tax.
Following the King’s Speech announcement, Mr Rotheram claimed the tax offered a “sustainable model for future growth”. He added: “This is the beginning of a major milestone for devolution and something I’ve been calling for over many years.
“Our visitor economy already contributes more than £6.27bn a year and supports more than 55,000 jobs across the region.
“This levy would allow us to reinvest millions of pounds directly back into the experiences, events and infrastructure that attract people here in the first place.
“Crucially, the money raised would stay local and be spent locally, empowering our visitor economy to better compete on the global stage.
“Done properly, this is a sustainable model for future growth where visitors make a modest contribution to help us continue to strengthen our tourism offer, support local businesses and continue to reinforce our position as the UK’s cultural capital.”