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Labour mayors in England vow to cap tourist tax at 5%

Reform UK and the Conservatives have criticised plans for the new levy on visitors' overnight stays.

BBC Business

York, pictured, is one of the cities where the regional mayor plans to limit the new levy to 5% of an overnight stay

Labour's regional mayors in England have pledged to cap a new fee on visitors' overnight stays at 5%, after hospitality bosses warned it could put jobs at risk.

Local leaders are set to gain new powers to charge an uncapped levy, dubbed a "tourist tax", as a percentage of the cost of hotels, bed and breakfasts and other types of accommodation.

"We know, don't we, that local government is struggling for funds - it was hit very hard by austerity," he told BBC Radio 4's Today programme.