Government announces visitor levy policy in campaign victory for Bristol Liberal Democrats

Bristol Liberal Democrats hail the announcement by the Government to give the power to raise a visitor levy to Mayors in England as a campaign win, but urge for the money raised to be spent locally.

The Liberal Democrats have long been leading calls in Bristol for the introduction of a visitor levy, a small charge that would apply to overnight stays in hotels and generate revenue to be reinvested into the local area. 

Until today, Scottish and Welsh local authorities were able to introduce a visitor levy through devolved powers, while authorities in England could not. In some areas - such as Manchester - accommodation businesses had introduced their own schemes, with funds invested to attract additional business to their cities.

The announcement made today by the Ministry of Housing, Communities and Local Government (MHCLG) reveals that Combined Authority Mayors will be granted the power, in line with the ongoing devolution of power to the regional bodies. Unlike those in Scotland and Wales, English local authorities – such as Bristol City Council – will not be able to introduce the levy themselves.

Earlier this year, the Liberal Democrat group amended Bristol City Council’s budget to commission an internal feasibility study to look into a visitor levy. The report was completed in September and acknowledged that a visitor levy presents ‘a clear opportunity to generate dedicated funding to support the visitor economy’. It recommended a series of actions for progressing the issue, including writing to Government to advocate for enabling legislation.

In September, Liberal Democrat Cllrs Andrew Brown and Stephen Williams wrote a joint letter with the Leader of the Council to the Government calling for the power to introduce a visitor levy to be written into law for English authorities. 

In October, the Minister for Devolution, Faith and Communities wrote back that the Government had no plans to introduce visitor levies at that time. However, the Minister highlighted that the issue might be on the table for devolution to Mayors.

Now, it is clear that sustained campaigning by Liberal Democrats in Bristol and across the country have succeeded. The Government has finally listened to their calls to allow this funding stream to be accessed in England.

Cllr Andrew Brown (Liberal Democrat, Hengrove and Whitchurch Park) said: 

“It is brilliant that the Government has finally listened to our calls for a visitor levy. It’s long overdue for authorities in England to be afforded this power in line with those in the devolved nations. 

“Allowing Mayors to implement this power is a welcome step in the right direction. We look forward to working with neighbouring authorities and local hospitality businesses to design a visitor levy that works for Bristol and the West of England.

“However, it is crucial that the money raised across the region is not stuck in the Mayor’s coffers. Our local communities are crying out for investment, public realm improvements and a good clean up. The money raised from people visiting our region must be put back into local communities, to improve the lives of visitors and residents alike.”

Bristol Liberal Democrat Council Group Leader Cllr Jos Clark (Liberal Democrat, Brislington West) added: 

“The Government talks about putting power in the hands of people who know their communities, while centralising control of the funds in the hands of one Mayor. Liberal Democrats know that the best people who know our communities are local Councillors and, of course, the communities themselves.

“Relieving pressure on the Council’s finances while making Bristol a better place to live, visit and work is why we originally moved the budget amendment in, and why we have been so passionate about why the Government should listen to us. Now that they have, it’s crucial that they do not squander this opportunity to transform our communities, and focus spending on where it is going to be most impactful, for instance on our parks, local shopping streets and museums.

“That’s why we will be campaigning for the proceeds raised by the visitor levy to be spent at the lowest level possible, so that Bristolians get a fair deal and a better city.”

Notes to editors:

• MHCLG press release: Levy on overnight trips will help mayors invest in local growth - GOV.UK
• Article about budget amendment: https://www.bristollibdems.org/news/article/liberal-democrats-lead-calls-for-a-visitor-charge-in-bristol
• Reporting on the amendment: https://www.bristol247.com/news-and-features/news/lib-dems-want-introduce-tourist-tax-visitors-bristol/
• The Council’s feasibility study was completed in September and had the following recommendations:
  • Recommendation 1: Advocate for enabling legislation that would grant local, and/or regional, authorities the statutory powers required to implement a formal visitor levy in future; 
  • Recommendation 2: Investigate the feasibility of a wider regional levy, in coordination with neighbouring authorities, to ensure cross-boundary alignment and impact; or 
  • Recommendation 3: Explore voluntary models or sector-specific levies to generate support for the visitor economy.
• In February, Cllr Jos Clark moved the budget amendment for the feasibility study.
• In September, Liberal Democrat Cllrs Andrew Brown, as Chair of the Economy and Skills Committee, and Stephen Williams, as Chair of the Public Health and Communities Committee, wrote a joint letter with the Leader of the Council to the Government calling for these powers.
• In October, the Minister for Devolution, Faith and Communities (MHCLG) replied stating that while the Government didn’t have plans to introduce a visitor levy at the time, the planned Right to Request powers for Mayors through the English Devolution Bill had led to conversations with Mayors expressing interest in it.