Mayors get the power to tax hotel stays, but Oxford has no mayor and no strategic authority. The rules also bar a city-only rate. What has to happen first.

The government has confirmed that an overnight tourist tax is coming to England. Oxford is not in a position to use it.

The power goes to mayors and to strategic authorities, the new regional bodies above councils. Oxfordshire has neither, and the plan to create one collapsed in June. The government’s rules also say a levy must cover a strategic authority’s whole area at a single rate, so Oxford could never set a tax of its own.

What the government announced

The Ministry of Housing, Communities and Local Government published its decision on 10 September, along with its response to a consultation that drew 1,223 replies. The main points:

  • Who can charge it: every mayoral strategic authority and every foundation strategic authority.
  • How it is charged: as a percentage of the cost of the accommodation, not a flat fee per night. Meals and other extras are excluded.
  • Who pays: the accommodation provider is liable. Providers may pass some or all of the cost on to guests.
  • What is covered: all types of short-term, commercially let visitor accommodation. Temporary accommodation and charitable shelters and refuges are exempt everywhere.
  • Local choices: an authority can also exempt a small number of accommodation types, such as tent pitches, touring caravan pitches and hostels.
  • No national cap: the government “does not intend to set a cap on the visitor levy rate”, though it calls this “a finely balanced issue”.

A bill will be introduced to create the power. The government says it expects local leaders to set out how they would spend the money by March 2028, subject to Parliament. (MHCLG press release, 10 September 2026; Visitor levy in England: government response)

The rule that matters most for Oxford

Three decisions in the government response shut out a city-only tax.

First, the levy will apply across a strategic authority’s whole area. The government considered letting authorities charge only in their busiest places. It decided against it, because of “the added complexity for businesses, and fragmentation of approaches”.

Second, there will be one rate. Authorities “will not be able to vary rates by season, accommodation type or constituent authority”.

Third, the strategic authority collects it. It is “the tax authority” for the levy, not the district or city council.

In practice, the last regional body proposed for Oxford was a Thames Valley authority covering Berkshire, Oxfordshire and Swindon. Under these rules a hotel in Oxford, one in Reading and one in Swindon would all pay the same percentage.

Where Oxfordshire’s devolution plan stands

Oxfordshire County Council’s own devolution page sets out the history:

  • 19 December 2025: Thames Valley leaders submitted an expression of interest for a mayoral strategic authority.
  • 20 March 2026: a further expression of interest followed, for a foundation strategic authority as the first step.
  • June 2026: after the government replied, “leaders were unable to reach agreement on what the FSA should look like”.

The county says this means “it is unlikely that Oxfordshire will be included in the first wave of announcements for new strategic authorities across England”. (Oxfordshire County Council, About devolution)

Oxford City Council tells a sharper version. Its statement of 1 July says the devolution minister wrote on 16 June endorsing the Thames Valley proposal. It says the new county council leader vetoed it the next day, at a meeting meant to finalise the joint submission. “The Government cannot impose a Strategic Authority on a region,” the city council said. (Oxford City Council, 1 July 2026)

The separate plan to replace Oxfordshire’s councils with three unitaries is also on hold. We reported on Monday that ministers have told councils to stop work on it while the programme is reviewed.

What would have to happen before Oxford could have a tourist tax Six steps. One: Thames Valley councils agree a devolution proposal; the June 2026 attempt collapsed. Two: the government creates a strategic authority; the county says Oxfordshire is unlikely to be in the first wave. Three: Parliament passes the visitor levy bill, announced 10 September 2026. Four: the authority publishes a prospectus and consults. Five: it takes a final decision and gives businesses notice. Six: the levy goes live at one rate across the whole authority area. Before Oxford could have a tourist tax All six are needed. Oxfordshire has not got past the first. 1. Councils agree a devolution proposal Thames Valley attempt collapsed in June 2026. No agreed proposal now. 2. Government creates a strategic authority County council: Oxfordshire "unlikely" to be in the first wave 3. Parliament passes the visitor levy bill Announced 10 September 2026, to be introduced "in due course" 4. The authority publishes a prospectus and consults Area, rate, exemptions and planned spending, then an impact assessment 5. Final decision, then notice to businesses No national minimum notice period will be set 6. Levy goes live One percentage rate across the whole authority, not Oxford alone Sources: MHCLG government response, 10 September 2026; Oxfordshire County Council devolution page. Graphic by The Oxford Post.
Steps 4 to 6 follow the government's own process map in Annex B of its response.

What the city council says

Oxford City Council has campaigned for the power. Councillor Susan Brown, its leader, said the city has “over half a million overseas visitors every year and even more people coming as tourists from within the UK”.

She said “1 in every £6 spent in the city centre by debit or credit card comes from visitors”. She also said tourism brings “additional stress”, including the need for more public toilets, street cleaning and litter collections.

Her statement “warmly” welcomed the announcement. She said it makes it “even more important that we all work together to get Mayoral Strategic Authority as soon as possible”. (Oxford City Council, 10 September 2026)

What it means for you

  • If you live in Oxford: nothing changes. No tourist tax can be introduced until a strategic authority exists, and none is proposed.
  • If you run a hotel, B&B or holiday let: there is no date to plan for. If a levy ever comes, you would be the one liable for it, and the authority would have to consult first.
  • If you let a room on a short-term basis: commercial lets are in scope. The government plans a threshold below which “occasional, informal providers” would not be liable, and friends or family staying with you are not covered at all. The response does not give the threshold figure.
  • If you want a say: a levy needs a public consultation before it can be introduced. Nothing is open now. The next decision point for Oxford is whether the Thames Valley councils reopen devolution talks.

For what your council tax pays for now, see our Oxford council tax bands page.