England is preparing to give mayors and local leaders new powers to introduce a charge on visitors staying overnight in hotels, holiday rentals and bed and breakfast properties.

The proposed visitor levy could generate hundreds of millions of pounds for local authorities, with the money expected to support public services and transport projects.

Unlike some tourism taxes in other European destinations, England is not expected to impose a national maximum on the charge. Local leaders would have the authority to decide whether to introduce the levy and how much visitors would pay.

The government is expected to structure the charge as a percentage of accommodation costs rather than a fixed amount, which could help keep the additional cost lower for budget travellers.

The hospitality sector has strongly criticised the proposal. UKHospitality has warned that higher costs could reduce demand and put thousands of jobs at risk. Industry representatives have also argued that visitors already face relatively high taxes when taking holidays in Britain.

The plan is part of the government's wider effort to give more financial powers to regional leaders and allow tourism revenue to be invested locally.