Response to Proposed Overnight Levy for England

Craster Parish Council has responded to a national government consultation on proposals to introduce a new Overnight Visitor Levy in England. The consultation explores giving Mayoral Strategic Authorities the power to apply a small charge on overnight stays in paid accommodation, with the intention that funds raised are reinvested locally.

The consultation has been launched by the UK Government and is open until 18 February 2026. It seeks views on how such a levy might work in practice, including who would pay it, how it would be collected, and how any money raised could be spent.

A copy of the Parish Council’s full response can be found on this webpage.

Councillor Martin Smith, Chair of Craster Parish Council, said: “Craster Parish Council is, in principle, supportive of an overnight visitor levy, provided it is designed in a way that genuinely benefits the communities hosting tourism. In places like Craster, visitor numbers are high and growing, and the pressure on local roads, public transport, toilets and other essential infrastructure is felt most sharply at parish level.

We welcome the Government’s commitment to using any levy to improve transport and infrastructure, but this investment must be community-driven and reflect local priorities. Parish Councils are on the frontline of managing visitor impacts, yet too often lack the resources to do so effectively. We believe there should be a clear mechanism for a proportion of any levy raised to flow directly back to the communities most affected".

Coun. Smith added: "While including holiday lets and short-term rentals could increase revenue, this will only work if there is a robust national register in place. Without it, it is simply not possible to fairly identify or enforce contributions from all accommodation providers. Our support for this levy is therefore conditional on these practical issues being resolved, so that the policy works for residents as well as visitors.”

What is the Overnight Visitor Levy?

The proposed Overnight Visitor Levy would allow certain local areas to introduce a modest charge on overnight stays in accommodation such as hotels, bed and breakfasts, campsites, self-catering properties and short-term holiday lets. It would not be a national tax applied automatically across England. Instead, it would be a discretionary power, meaning that local Mayors and Combined Authorities would decide whether to introduce a levy in their area and how it would operate.

Craster lies within Northumberland and the geography of the North East Combined Authority. If the power is approved by Parliament, any future decision to introduce a levy would be taken at that strategic regional level, following local consultation.

Why is this relevant to Craster?

Craster is a small coastal parish that experiences very high visitor numbers, particularly during peak seasons. Tourism brings significant benefits to the local economy, but it also places pressure on local infrastructure and services, including roads, parking, public toilets, footpaths, waste collection and the wider public realm.

The Parish Council believes it is important that the voices of smaller rural and coastal communities are heard as this policy is developed. While decisions would be made at a regional level, the impacts of tourism – and the costs of managing it – are often felt most directly at the very local level.

What happens next?

The Government will review all consultation responses before deciding whether and how to proceed with legislation. If the levy power is introduced, further decisions would then be required locally before any charge could be applied in Northumberland or elsewhere in the North East.

Craster Parish Council has submitted a detailed written response setting out these views and will continue to engage constructively as the proposals develop.

Residents and stakeholders who wish to comment on the consultation can do so directly via the Government’s consultation website before the closing date via the following link:

HERE

Files:

• Visitor Levy for England - CPC response