A Levy Too Far? Burnham’s Vision for Manchester Under Fire

In a bold move that has ignited fierce debate, the Mayor of Greater Manchester, Andy Burnham, has proposed replacing the city’s voluntary visitor charge with a mandatory tourist tax. The announcement earlier this week suggests that those staying overnight in Manchester should face a “proper levy” to bolster the region’s coffers. Yet, this vision has drawn sharp criticism from industry leaders, raising questions about its impact on visitors and the city’s reputation as a welcoming destination.

Burnham’s argument hinges on fairness and precedent. Speaking to BBC Radio Manchester, he emphasised that residents contribute heavily through council tax and rarely use hotels themselves. “It’s largely about people coming into the city region,” he remarked, framing the levy as a charge for outsiders rather than a burden on Mancunians. He pointed to Edinburgh, where a 5% tax on hotel stays—set to begin in July 2026—is projected to generate £50 million annually for reinvestment. Wales, too, is moving ahead with plans for a £1.25 nightly fee from 2027. Burnham also noted that Britons abroad frequently encounter similar taxes in European hotspots like France, Germany, and Italy, questioning why visitors to Manchester should be exempt.

Since 2023, Manchester has operated an optional £1-per-night “city visitor charge” under the Accommodation Business Improvement District (ABID). This scheme has funded efforts to promote the city, keep hotel-adjacent streets clean, and secure events to boost off-season tourism. Burnham, however, believes this voluntary approach falls short, advocating for a compulsory fee to ensure consistent revenue. “In an era where we are struggling to raise funds from the public here, it feels right to me,” he asserted, aligning his proposal with a broader push for financial resilience among local authorities.

Yet, not everyone shares his enthusiasm. UKHospitality, a prominent trade body, has lambasted the plan, warning of dire consequences for consumers and businesses. Chief Executive Kate Nicholls argued that a mandatory tax would “hit consumers in the pocket” and erode Manchester’s appeal as a destination. She cited modelling that suggests reduced visitor numbers and spending—a potentially devastating blow to a city that thrives on its vibrant cultural and commercial offerings. Nicholls also challenged Burnham’s European comparisons, noting that nations with tourist levies often offset them with lower VAT rates, unlike the UK’s steep 20%. “Our visitors are already taxed considerably more than other European countries,” she said. “We shouldn’t be adding to that burden.”

The critique didn’t end there. Nicholls highlighted the £94 million in revenue that Greater Manchester’s hospitality sector already contributes to local services, alongside ABID’s existing efforts. To her, the mayor’s proposal risks undermining an industry that is both an economic powerhouse and a key driver of the city’s identity. “A tourist tax to top up day-to-day council spending is not the answer,” she insisted, urging policymakers to consider the broader implications for tourism competitiveness.

Burnham, who addressed UKHospitality as a keynote speaker at its Northern Dinner last year, is at odds with an organisation he once engaged in. While rooted in a desire to secure Manchester’s financial future, his vision has exposed a rift between civic ambition and industry realities. For its part, the government has distanced itself from the idea, with officials stating there are “no plans” to introduce a national tourist tax—a stance Nicholls and her allies intend to enforce.

As the debate unfolds, Manchester stands at a crossroads. Will a compulsory levy unlock new growth opportunities, or will it deter the very visitors the city seeks to attract? The clash between Burnham’s bold proposal and UKHospitality’s warnings offers no easy answers. Still, it demands a deeper reflection on how cities balance innovation with economic vitality in an increasingly competitive world.