Tourists visiting England could soon have to pay an additional charge when staying in hotels, bed and breakfasts and short term rental properties.

The UK government is planning to give mayors and local authorities the power to introduce an overnight visitor levy in their areas. The charge would be based on a percentage of accommodation costs instead of being a fixed amount, with the aim of keeping lower cost holidays more affordable.

Revenue collected through the levy could be used to improve local transport, public services and tourism infrastructure. Local leaders would have the flexibility to decide how the money is spent according to the needs of their regions.

The proposal has received criticism from parts of the hospitality industry, which warn that higher costs could make holidays more expensive and put pressure on tourism related businesses and employment.