00:00The levy will have no upper limit, though government sources said mayors, including
00:05London's Sadiq Khan, are unlikely to make it too expensive, with most indicating it
00:11would be a few per cent. Labour's 10 regional mayors have committed to keep any tax rates
00:18below 5%, saying the levy should be modest and avoid extreme variation between regions.
00:26Hotel and tourism firms have warned the uncapped proposals will be hugely damaging and hit
00:34British holidaymakers hard, but ministers say the policy will help local leaders boost
00:40investment in their areas. Mayors will decide how to spend the revenue raised from the fee,
00:46which will apply to both overseas tourists and Britons on so-called staycations, rather
00:52than money being funnelled back into the Treasury. Ministers planned to introduce legislation
00:57establishing the levy in due course, with mayors expected to set out their plans by March
01:042028. Plans for the tax were first announced under Sir Keir Starmer following similar schemes
01:12introduced by the devolved administrations in Scotland and Wales. Prime Minister Andy Burnham
01:18reiterated his commitment to the scheme, framing it as part of his wider devolution agenda aimed
01:24at pushing power out of London.
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