A new tourist tax will be “vital” to support Liverpool’s visitor economy a senior leader has claimed. Communities Secretary Steve Reed confirmed on Tuesday powers will be granted to the Liverpool City Region to add a charge on overnight hotel stays in the city.

Metro Mayor Steve Rotheram – who has campaigned for the tourist tax – said a “modest” levy could bring in around £17m to the city each year. Currently, Liverpool’s Accommodation BID (ABID) implements a £2 overnight charge within its area.

It is thought the scheme will likely take effect from 2028 when the ABID expires. Cllr Harry Doyle, Liverpool Council cabinet member for culture, said the adoption of the scheme would allow the city to greater support its major events.

placeholder image — Metro Mayor Steve Rotheram | LDR

The new levy will feature two important distinctions to the existing scheme – one operating for the entire city region and a levy for Airbnb-style properties. Metro Mayor Mr Rotheram led a coalition of Mayors from across England in lobbying the government for a locally administered levy on overnight stays.

The campaign’s success ensures England will be in step with similar systems in Scotland and other European countries where such a levy is reinvested in tourism, culture, and infrastructure. Reacting to the announcement, Cllr Doyle said: “Liverpool is a world class visitor destination and it’s vital that we support the sector here in the city, which is why we’re delighted that the Chancellor has announced that she will allow cities like Liverpool to introduce an overnight visitor levy.

“Many Scousers, when we go abroad, particularly in mainland Europe, we pay an overnight visitor levy or in short, a tourism tax, and that supports the destination’s infrastructure and supports our local economies, and we want that support to be reciprocal. This is something that we’ve been campaigning and lobbying government for almost 10 years now, because we know just how much the economy means to the city, working hand-in-hand with the private sector to make sure that we can support major events, conferences and visitor attractions coming here to the city to bring millions and millions of visitors, but also make Liverpool an exciting place to live, work, study and play.”

Mr Rotheram said he was pleased the government had listened to pleas from regional mayors and said for far too long cities like Liverpool had been “expected to compete on a global stage without the basic tools that other places take for granted. He said: “Cities like Barcelona and Paris raise tens of millions each year through similar schemes – money that goes straight back into improving the visitor experience and supporting the local people who keep those destinations thriving.

“Until now, we’ve had no such option.” It is hoped a “modest levy” would raise around £17m a year in Liverpool.

The tax fee will be confirmed in due course. It was confirmed earlier on Tuesday that the Accommodation BID will run for the duration of its proposed two-year term after a bid to throw it out by one of the UK’s biggest hotel chains was thrown out.