Liverpool BID Opposes Metro Mayor’s Tourist Tax Plan

Liverpool BID Opposes Metro Mayor’s Call for Tourist Tax

LIVERPOOL — The Liverpool BID Company has voiced strong opposition to Metro Mayor Steve Rotheram’s proposal to introduce a government-backed tourist tax in the Liverpool City Region, warning it could disrupt an already effective, business-led funding model for local tourism.

Earlier this month, Mr Rotheram joined several other Metro Mayors in lobbying for devolved powers to implement a visitor levy on overnight stays, claiming the initiative could generate up to £11 million annually to support tourism development in the region.

However, a £2-per-night levy is already in effect in Liverpool. It is administered through the city’s Accommodation Business Improvement District (ABID)—one of the schemes operated by Liverpool BID Company—and was approved by member hotels earlier this year.

In response to the Metro Mayor's proposal, Liverpool BID Company joined a coalition of private sector leaders and hospitality groups in a formal letter addressed to Chancellor Rachel Reeves and Culture Secretary Lisa Nandy, arguing that private sector-led levies are preferable to what they describe as a “politically-led tax.”

The letter, co-signed by representatives from other major UK cities such as Manchester, Birmingham, and Chester, cautions against disrupting what they see as a successful and democratic funding mechanism already in place.

“We come together with a shared and purposeful voice,” the letter states, “to raise concerns over measures that may threaten the health, vibrancy and economic resilience of our major cities—particularly the fragile hospitality industry.”

The signatories distinguish between voluntary visitor levies, such as those in Liverpool and Manchester, and government-imposed tourist taxes. They emphasise that ABID levies are implemented by the hotel sector itself, collected and managed independently, and allocated through transparent business plans that have received the approval of local businesses.

According to the letter, Liverpool and Manchester’s ABIDs currently raise more than £6 million annually, which is reinvested directly into initiatives designed to enhance the visitor experience and stimulate economic growth.

“These funds are entirely focused on supporting the visitor economy in city centres,” the statement continues, “and are managed by industry-led boards through a process that is both democratic and transparent.”

The authors also reject the Metro Mayors’ claim that no dedicated income streams currently exist for reinvestment in tourism, asserting that the ABID model has proven itself to be both sustainable and effective.

The letter concludes with a warning that centralising the levy through political channels risks undermining the success of the existing scheme:

“There is little support within the hotel industry for a politically-driven tourist tax. Doing so could fracture the relationship between the public and private sectors and undo years of progress made in revitalising visitor economies, particularly in communities hardest hit by economic challenges.”

The signatories urge the government to consult closely with the hospitality sector before considering any new powers to implement tourist taxes across the UK.