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FOURTEEN British cities are eyeing up a new “tourist tax” meaning tourists and Brits heading on staycations will face paying hundreds more for their trip.

This comes as Andy Burnham approved the plans yesterday (September 10) to add five per cent to overnight stays.

Yesterday, the prime minister announced plans to allow mayors to impose an uncapped charge on overnight stays, although Labour mayors have pledged to cap the new fee at 5 per cent or below.

The additional fee would be added to hotel bills, and apply to those staying overnight in hotels and holiday lets including Airbnb and guesthouses.

All visitors, regardless of nationality and reason for visit, will have to pay it. It will be uncapped, meaning mayors can choose how much to charge.

The money would then be used to fund local amenities such as public transport and infrastructure.

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Cities and regions that may soon introduce the additional charge include London, Liverpool, Bristol and Bath.

As well as cultural hubs such as Durham, Manchester, York and Newcastle.

Earlier, the government had promised to protect budget holidays “by making sure low-cost accommodation always pays lowest levy” and said the extra cash would be invested in high streets.

However, the chief executive of UKHospitality, Allen Simpson, warned the BBC that the new charge could add nearly £100 to £120 to the average cost of a UK family holiday.

This also comes at a time where the hospitality industry has already suffered from rises to Employer National Insurance and the minimum wage, costing the sector billions.

However, these would not be the first regions in the UK to implement the new charge – which could come as early as 2028.

In Manchester, a “city visitor charge” of £1 per room per night already applies to some hotels, however the new tourist charge would replace it.

Charlie Herlihy and Sophia Woodcock have been working hard to save money after living in a city on entry-level salaries

A savvy couple who “never pay full price for anything” by using discount apps and reward offers manage to save £1,600 per year living in London. Charlie Herlihy, 26, and partner Sophia Woodcock, 24, have been living frugally since their teens, and since moving to the capital on entry-level salaries in 2025, have been working out ways to maximise their savings.

They eat out using apps that give huge discounts, choose their energy providers wisely to get the best rewards and use Gold Amex cards to earn points “anywhere” they spend to exchange for luxury perks like plane tickets. In July, the duo were able to save £137.02 from their swaps.

After travelling to South-East Asia for six months after saving £12,000 in just three months in 2022 using their tips and tricks and spending less, their next goal is to afford return tickets to Singapore. Charlie, a graphic designer, from London, says: “Kind of our brand became we never pay full price for anything.

“I think mainly the reason it became a habit is anywhere you go you tap your card without thinking about it. We have a back catalogue of apps on our phones that do deals and discounts and websites we research on first.

“Say we’re planning a weekend we’ll check certain websites for offers and places that are doing different discounts. It takes 15 minutes in the morning but to plan it out is the most cost-effective way of doing it.

“I was used to doing it myself and a lot of people don’t factor it in and go with the flow but you end up spending loads of money without planning. It really does add up.”

Sophia and Charlie have a “portfolio” of methods to ensure they can live frugally, especially on food and drink. Sophia said: “Eating out and coffee is something me and Phi love to do and one of the things we spend on and apps are the best way to save money on a big expense.

“The Paace app rewards you with coffees for getting your steps in. Eat Club gives you discounts at restaurants that don’t have their tables filled.”

They also make use of First Table, an app that often gives you a 50% discount on your food bill if you dine early. The pair try to shop at Sainsbury’s where they can – as Charlie says they have an affiliate with Amex where they can earn four points per £1 spent, as oppose to £1 at other supermarkets.

Lidl Plus is also a go-to, and they will check out the app before hitting the shops to see what’s on offer, as well as making use of Ocado’s 25% off offers.

“We use Octopus energy as it gives you stuff like two for £8 cinema tickets, e-bike rides around London and free coffees for literally paying your bills as you would with every other provider,” Charlie says.

“We use the gold Amex card which gives you points on everything you spend anywhere really. You can build those up and buy flights, stuff like that.

“Our project we’re working towards is return tickets to Singapore. We’ve made it our default card even when tapping on the tube and stuff like that.”

She is also a “big advocate” for checking promotions that come through from restaurants on emails – having recently “paid nothing” after bagging a £15 voucher and cashing in on half price ramen at a restaurant. Charlie said: “We’re not really saving for anything but just to have enough money for freedom in life as we’d love to go to Australia and go travelling again.”

You can follow Charlie and Sophia on TikTok @lifeofphiandcharlie. Charlie and Sophia’s July savings:

Utilities

Octopus Energy

-Cinema trips £11.96 saved

-Free Forats bike hire – 30-minute free session (usual price £10.90)

Food and drink

Paace

-They bought four coffees and saved £16.60 (£8.30 each)

Eat Club

-Went out to dinner using discounts 3 times and saved 30% on one bill (£51.07 became £29.86 saving £11.21)

First Table

-Saved 50% on one saving £23.69 from a £65.38 bill (including the first table £6 booking fee)

London on the Inside

-£88.90 down to £50 with a 50% off offer (with service charge)

Too Good To Go

-Didn’t use this month but normally pick up a £3.99 Gail’s bag worth £15, an £11.01 saving

Banking

The Amex Gold card

-The couple say they make back between 0.05%-1% every time they tap their cards on anything with Avios redeems – which is how nothing they pay for is really ever full price (unless they do not accept Amex). In July, they spent £850 through Amex which equates to £4.25-£12.75 depending on where they redeem their Avios.

They are still saving up for their first fully paid for Avios flight. Also, whenever purchasing anything online they try and do so through the Avios portal – similar to TopCashback – which gives them Avios for free just for buying something through the portal.

Total savings – £137.02