Why it matters: The levy – announced by government in the November Budget – would give English mayors powers to charge for overnight accommodation including hotels, B&Bs and holiday lets, with money raised going towards transport and infrastructure projects. A government consultation on the policy closes on 18 February 2026.
The details: At a council meeting on 14 January, Conservative councillor Edward Phillips moved a motion to rule out any overnight visitor levy for the future Norfolk-Suffolk combined authority. Labour members rejected the proposal.
What we asked: Following the 14 January vote, Ipswich.co.uk posed three questions to the council:
Has IBC conducted any analysis of potential revenue or hospitality impact?
Do they have a position on the merits of a visitor levy?
How does IBC respond to concerns from businesses?
What they're saying: In a statement responding to those questions, council leader Neil MacDonald said the decision "will be a matter for the future Mayor for Norfolk and Suffolk to consider" when they are elected in 2028.
"The Government are saying they will not compel any Mayor to introduce this levy and are saying they won't reduce funding for Mayors if they decide to introduce this levy. Each Mayor can choose what is right for their area," MacDonald said.
He added: "This consultation on overnight visitor levies is unlikely to have any effect on visitors to Ipswich for many years to come and I would encourage residents, visitors, local businesses and the media to focus on what our town has to offer now."
The other side: Phillips said he was "very disappointed" Labour rejected his proposal, warning the uncertainty "could damage our ability to attract business and leisure visitors."
For context: Research by York St John University found that a £1 per night levy could raise £26m annually for York and North Yorkshire based on 8.2 million overnight stays. Manchester already operates a £1 per room per night levy, while Edinburgh is preparing a 5% tax from July 2026.
What you can do: The government consultation closes on 18 February 2026. Hotels, B&Bs, and other accommodation providers can respond here. The consultation seeks views on how the levy should be designed, including potential exemptions, collection mechanisms, and how revenue should be used.
The Norfolk-Suffolk mayor will be elected in 2028, with any decision on a visitor levy deferred until after that election.
The bottom line: With the decision deferred until 2028, Ipswich businesses have until 18 February to make their views known through the government consultation.
