Consultation on a proposed policy for the Overnight Visitor Levy and business improvement districts

Start date: Friday 7th August 2026
End date: Sunday 13th September 2026

What are we consulting on?

We are looking for feedback on a proposed policy on the potential "double-taxation" of the visitor accommodation sector arising in the event of overlapping occupation based levies. The proposed policy describes how the council will exercise its functions and powers to prevent such double taxation.

Background

Liverpool’s tourism and visitor sector is key to both the local economy and the character of the city. It is estimated that the wider city region’s tourism sector generated more than £6bn in 2024, with more than 55,000 persons employed within it.

The council area is currently covered by an accommodation business improvement district (“ABID”) under which larger hotels (with a rateable value of £45,000 or more) pay a £2 per night levy on occupied rooms which they may choose to pass onto their customers. The sums raised by the levy are passed to the Liverpool BID company which runs the business improvement district. To date the ABID has raised some £3.75 million which has been used by the BID company to support business, sports and culture events in Liverpool together with destination marketing and visitor economy support. In this way the ABID seeks to promote visits to the city, supporting both the accommodation sector and the wider local economy.

The government is now proposing to legislate to enable regional mayors to introduce an overnight visitor levy (“OVL”) to raise and invest money into projects that improve their areas, raise living standards and drive growth. It is anticipated that the overnight visitor levy will take the form of either a fixed or proportionate nightly levy payable on overnight stays in hotels and other guest accommodation (including serviced accommodation), backed by a self-assessment system requiring operators to calculate and declare their liability for the levy.

It is understood that the Mayor of the Liverpool City Region intends to consult on the potential introduction of an OVL in the Liverpool City Region. As a city with a current ABID levy, it is important if the OVL is introduced that the transition between the two systems is carefully managed, to avoid either a gap in funding for important tourism initiatives, or alternatively the risk of “double-taxation” on businesses and visitors.

It is therefore proposed that the council adopt and publish a policy that such an overlap between the potential OVL and any levy under an accommodation business improvement district should be avoided in the interests of protecting levy-paying businesses, visitors and the local economy.

The council’s cabinet has now approved a draft policy document for the purposes of consultation. You can download and read the full document below, but the proposed policy wording is:

How to comment

If you live, work or visit the city or have a business which may be affected, we would like to hear from you.

Send your views on the policy by email to roger.mann@liverpool.gov.uk or by post to: Roger Mann, Head of Law, Legal Services, Liverpool City Council, Cunard Building, Water Street, Liverpool, L3 1AH.

What happens to my views?

All relevant consultation responses will be taken into account when we decide whether to adopt and publish the policy and, if so, whether in the draft or an amended form.

The names of individual respondents will not be included in any published reports following the consultation.

What happens next?

Once the consultation closes all responses received will be considered, with a decision on the proposed policy being taken in September 2026. If the policy is adopted (in the draft or an amended form) then it will be published and will guide the council's decision making in relation to any potential overlap between any OVL and an accommodation BID.

Further information

If you wish to discuss the proposed policy or need further information, please email roger.mann@liverpool.gov.uk