Give councils power to introduce a tourist tax to fund local services
Give councils power to introduce a tourist tax to fund local services - The Labour Party
- Labour’s Bill would let councils raise money from overnight stays to help pay for services that visitors and residents use.
- Manchester’s £1 per room per night charge raised £2.8 million in first year
Labour finance spokesperson Ged Nash TD has today called on the Government to back Labour’s new Bill, the Local Government (Room Charges) Bill 2026 in the Dáil to give local authorities the power to introduce a charge on overnight accommodation. Councils would set the charge locally and keep the proceeds to help pay for services and facilities that residents and visitors use.
Deputy Nash said:
“A busy tourist season means more customers for local businesses and more work for people in hospitality. It also means more bins to empty, more streets to clean and more wear on the parks and paths. Councils have to cover those extra costs without a dedicated source of income linked to overnight stays – Government can change that by backing this Bill.
“In this Bill, Councils would decide whether to introduce a charge and what rate makes sense locally. The pressures on a busy city or town centre can look very different from those on a coastal town where visitor numbers peak for a few weeks each summer. In either case, the money would go to the local authority responsible for the services people rely on, from public toilets and waste collection to transport and cultural facilities.
“Local and regional authorities in France, Germany, Spain and Italy already use accommodation levies. in Greater Manchester a £1 per room per night charge introduced through its accommodation business improvement district raised £2.8 million in its first year. That helped pay for more street cleaning, a practical improvement that people who live, work and stay in the city can see.
“Fianna Fáil and Fine Gael know what a busy season means for the councils that have to keep streets clean and public facilities open. Fianna Fáil favours a room levy, Fine Gael are more reticent. They should back Labour’s Bill in the Dáil and give councils the power to raise money from overnight stays and spend it in the communities that welcome those visitors.
“We need to view this through the lens of broadening the country’s revenue base and also putting our trust in good Councillors who are prepared to raise additional local revenue and be held accountable for how that money is spent.”