IN his dispatch box speech, John Healey, the Chancellor of the Exchequer, in his first-ever Budget, announced that mayors and local leaders will be given new powers to implement an Overnight Visitor Levy in their regions.

The announcement was nothing new as, with so many budgets, we already knew that Cornwall would be given the green light to implement what is widely being discussed as a “tourist tax”.

Designed to drive investment into communities, these new powers will be afforded to Mayoral and Strategic Authority’s only, as part of a devolution drive to shift power out of Westminster. The announcement follows a consultation on proposals in 2025.

Regarding the potential introduction of an overnight visitor levy for Cornwall, a few things are key to note.

The opportunity is unique, and could deliver millions of pounds to help offset and mitigate the impact tourism has on Cornwall. As well as offsetting the impact, it could provide investment into our cultural activities and heritage assets.

The levy will be applied to the cost of accommodation, and will charged be a percentage not a flat fee. This is to protect budget holidays and to shield families from disproportionate costs for cheaper holidays.

However, Cornwall Council does not yet have the powers required to introduce an Overnight Visitor Levy. The possibility of obtaining those powers forms part of wider discussions with Government regarding Cornwall's proposed Single Financial Strategic Authority status, which was also announced during Wednesday’s Autumn Statement.

Discussions about our status as a Strategic Authority, the new powers, and the money that might come with this status, are underway at No.10 North, Andy Burnham’s Manchester HQ but there is no timetable for when those discussions or the implementation of the strategic authority will conclude. All of that is very much still a work in progress.

Key to note, is that, despite the announcement, this remains at a very early stage and significant work would be needed to be undertaken before a levy could be introduced.

For example we would want to undertake impact assessment work and engage the sector and key stakeholders throughout out the hospitality industry before reaching any kind of decision. In addition, the legislative process of white papers, consultation and ratification of the bill, is predicted to take until Spring 2028, at the very least. Government business is not fast.

Meanwhile, I’m aware the proposal is already attracting attention and there are many strong opinions and unanswered questions about whether it is right for Cornwall, and to how any levy might operate.

We do need to seriously consider how any income generated could support local services, offset the impacts on our roads, our coast paths, or our blue light services. We also need to have a real understanding of how funds would be collected and distributed and we would need to understand the wider impacts on Cornwall's visitor economy.

To get this right, robust evidence will be important and we will need to listen to a range of voices to ensure this is right for Cornwall before making any decision.