February Week 3: Andy Burnham faces backlash over proposed Manchester tourist tax.
The mayor proposed replacing Manchester’s optional visitor charge with a mandatory fee.
Andy Burnham, the Mayor of Greater Manchester, has come under fire from UKHospitality after advocating for the introduction of a mandatory tourist tax in the city.
Earlier this week, Burnham stated that visitors to Manchester should pay a “proper levy” on overnight stays, replacing the existing optional charge with a compulsory fee.
Since 2023, visitors staying overnight in the city centre have been encouraged to contribute an additional ￡1 per night to the Accommodation Business Improvement District (ABID). This initiative helps fund efforts to promote Manchester as a tourist destination, maintain cleanliness around hotels, and attract events, conferences, and festivals to boost tourism during quieter periods.
Speaking to BBC Radio Manchester, Burnham explained his position:
"I would like a scheme that’s mainly about visitors to Greater Manchester. People pay their council tax and do not generally stay in hotels. I know it happens, but largely, this is about people coming into the city region."
Burnham cited Edinburgh’s recently approved tourist levy as a model for Manchester. Scotland’s capital will implement a 5% tax on hotel stays from July 24, 2026, a move projected to generate up to ￡50 million annually for reinvestment in the city. Similarly, the Welsh government is planning a nightly fee of ￡1.25 for guests staying in hotels, bed and breakfasts, and self-catered accommodation from 2027.
Burnham, who was a keynote speaker at the UKHospitality Northern Dinner last year, pointed out that British tourists frequently pay similar taxes when traveling abroad. “In an era where we are struggling to raise funds from the public here, it feels right to me—when there’s the levy British tourists pay in France, Germany, and Italy—why should people from there not pay one?” he argued.
Backlash from UKHospitality
UKHospitality chief executive Kate Nicholls has strongly opposed Burnham’s proposal, warning that it would negatively impact both consumers and businesses.
“It’s really disappointing that the Mayor of Greater Manchester doesn’t seem to appreciate the damage a mandatory tourist tax would have on the city as a destination,” she said. “Modelling shows it would reduce visitor numbers and spending, ultimately harming businesses.”
Nicholls also criticised comparisons to other European cities, noting that they often have significantly lower VAT rates than the UK’s 20%. “Our visitors are already taxed considerably more compared to other countries in Europe—we shouldn’t be adding to that burden,” she stated.
Furthermore, she emphasised the existing financial contributions of the hospitality industry:
“The mayor recognises the contribution residents make through council tax, but he overlooks the ￡94 million hospitality businesses in Greater Manchester generate for local services. On top of this, there is a hotel-led scheme that already funds street cleanliness and Manchester’s promotion as a destination.”
Government Opposition
Nicholls welcomed the UK government’s stance against implementing a tourist tax, affirming: “I’m pleased that the government has been clear that it has no plans to introduce a tourist tax, and we will be holding them to that commitment.”
While Burnham argues that a mandatory levy would provide much-needed revenue for Manchester, critics warn that such a measure could deter visitors and place undue strain on an already heavily taxed hospitality sector. As discussions continue, the debate over whether Manchester should follow in the footsteps of Edinburgh and Wales remains a contentious issue.