Liverpool city region will introduce a ‘tourist tax’ after the Government granted new powers to Metro Mayor Steve Rotheram – he will implement this when the current Liverpool BID scheme ends. Tony McDonough reports
A Liverpool city region ‘tourist tax’ will be implemented by 2028 after Metro Mayor Steve Rotheram secured the go-ahead from the Government.
Chancellor Rachel Reeves is to give powers to local mayors to implement a visitor levy on people staying in hotels and Airbnb accommodation, possibly set at 5%. It is estimated this could raise up to £11m in the Liverpool city region each year.
This levy will replace the current £2-a-night scheme run by the Liverpool Accommodation BID that is applied in Liverpool city centre only. It was introduced in the summer after a vote of accommodation providers. It expires in December 2027.
On Tuesday Liverpool BID Company said it had successfully seen off a legal challenge to the levy from hospitality giant Whitbread, which operates four Premier Inn hotels in Liverpool city centre.
Following an investigation by the Ministry of Housing, Communities and Local Government, the appeal by Whitbread was rejected, paving the way for the £9m investment for the city across the next two years.
Liverpool BID Company chief executive Bill Addy said: “We work incredibly hard to deliver our work on behalf of our levy payers, and how our ballots are conducted, as laid down by UK legislation.
“It is vital it is a transparent process as that is what engenders trust and makes business improvement districts a central part of city life and investment.”
Mr Rotherham has been campaigning for powers to implement a city region-wide tourist tax for several years along with a coalition of Mayors from across England.
This decision means England will be in step with Scotland and other European countries where levies are reinvested in tourism, culture, and infrastructure. Mr Rotheram said this new power will inject hundreds of millions of pounds into the economy over the next few years.
Liverpool city region welcomes more than 60m visitors annually, supporting a £6.25bn visitor economy. Mr Rotheram said: “This is something I’ve been calling for since I was first elected back in 2017.
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“For too long, cities like ours have been expected to compete on a global stage without the basic tools that other places take for granted. Cities such as Barcelona and Paris raise tens of millions each year through similar schemes.
“Until now, we’ve had no such option. So I’m pleased that the government has listened and acted – giving areas like ours the powers we need to support and grow our economies in a sustainable way.”