Proposals to introduce a ‘tourist tax’ in parts of Merseyside could see a £2-per-night charge introduced for overnight stays
Proposals to introduce a ‘tourist tax’ in parts of Merseyside could see a £2-per-night charge introduced for overnight stays
Plans are in motion to turn one Merseyside town into the ‘New ‘York’ of the Liverpool City Region, with charges for overnight stays set at £2-per-night. This proposal is currently being assessed by Sefton Council, with the possibility of introducing a ‘tourist tax’ in some parts of the borough.
The UK government announced plans in late 2025 to give English mayors powers to introduce a mandatory overnight visitor levy, essentially a “tourist tax,” to fund local infrastructure, transport, and regeneration schemes. This move would allow mayors to generate local revenue for improvements, with potential charges ranging between £1.30 to £2 per-person-per-night, and is part of a vision for ‘greater fiscal devolution’.
In November last year, LCR Mayor Steve Rotheram welcomed the Government’s decision to grant devolved powers for regional mayors to introduce an overnight accommodation levy. Mayor Rotheram emphasised this new power will allow regions to inject hundreds of millions pounds over the coming decade to build a more ‘sustainable future for their visitor economies’.
Although a version of the ‘tourist tax’ is already in place in Liverpool, this has not been rolled out in other areas such as Sefton. The Liverpool ECHO understands there is a consultation process planned, in which Sefton Council officials will look at the possibility of introducing a ‘tourist tax’ into designated areas, including Bootle and Southport.
However, a row is already brewing about the proposals. Ahead of the last full council meeting at Bootle Town Hall (January 15) leader of the Conservatives group, Cllr Mike Prendergast confirmed his intention to push back against the ‘tourism tax’, believing it will negatively impact local hoteliers and B&B owners.
Cllr Prendergast went onto say: “Very few things in life are improved by adding the word tax on the end of it.
“Our local tourism offering operates in a very price sensitive environment, once again decisions that massively affect local businesses are being taken by people with very little business experience.”
He added: “Southport is a tourist town, and the last thing we need is another tax on a vital part of our local economy.”
In a motion submitted to the council chamber, Cllr Prendergast said: “Sefton’s hospitality and accommodation sectors are already having to deal with massive increases in the cost of energy, food and staff, a sluggish economy that is contracting with lower consumer and business confidence.”
Cllr Prendergast added: “The introduction of a Tourist Tax in Sefton will be an additional tax burden on the leisure and hospitality sector with an especially negative impact in Southport which is already subject to Sefton Labour’s Investment Tax on tourism related developments.”
Also ahead of the council meeting, Sefton Council leader, Cllr Marion Atkinson appeared on BBC Radio Merseyside, to answer a range of topics relating to the borough for 2026.
Responding to claims a ‘tourist tax’ could potentially put people off from visiting Southport, Cllr Atkinson said: “I don’t think it will put people off staying there.
“Particularly with what we’re doing in Southport, we’ve got a fantastic events programme next year, which is going to be drawing in thousands of people.
“So no, I don’t believe that it will. When I go on holiday, I pay a tourist tax, a levy.”
Cllr Atkinson confirmed the proposed tax would be approximately £2-per-night, adding “The reality is, we have got so much going on in Southport, so much going on in Bootle, and there’s a cost [to that]. This is part of the way to generate local revenue coming in, so we don’t have to keep going to government.”
Cllr Atkinson added: “It happens across the world, and I think some people think it’s only in Paris and it’s only in New York, but it’s creeping in everywhere. Well, I’ve got ambitions for Southport to be the Paris and New York of the city region.”
During the subsequent council meeting, Cllr Atkinson responded to Cllr Prendergast’s motion, highlighting the regeneration projects in place, which aim to support Southport’s visitor economy, concluding: “The motion is asking for us to oppose something that is still in the consultation phase.
“It’s premature, and it’s not been thought through by the Tories.
“This council will be submitting a response that will be predicated on what is best for Sefton. However, any suggestion that we should oppose something that potentially can help us grow our offer, improve our customer experience, promote our fantastic product is complete and utter madness.”
