The UK government has confirmed that mayors and councils in England will be allowed to introduce a tourist tax on overnight stays in hotels, B&Bs, guesthouses, and short-term rentals such as Airbnb. Revenue will fund transport, infrastructure and local visitor facilities.

It will not be a single national tax and city regions can decide whether to use the power, and at what rate. Tourism leaders in busy cities have welcomed a dedicated funding stream, while hospitality groups warn higher costs could deter visitors.