York's council leader has said she would support powers to levy a visitor tax after Northern mayors met in the city to call for greater devolution to boost economic growth.

City of York Council leader Cllr Claire Douglas said she would like to see the York and North Yorkshire Combined Authority get powers to introduce a levy, like that introduced in Manchester.

The Labour politician told the Local Democracy Reporting Service (LDRS) the money raised could be invested back into the city while discussions with the Government about expanding devolution continue.

Cllr Douglas’ comments came as mayors from across the North met in York on Wednesday, September 4 to unveil plans to work more closely together to boost economic growth.

Their Manifesto for the North stated developing a joint trade strategy, upgrading rail links and rolling out partnerships worth £6.75 million to support tourism could add £118 billion in growth by 2050.

It also proposes setting up a £50 million One Creative North investment fund to help foster talent in the culture sector.

Deputy Prime Minister Angela Rayner said the Government wanted to broaden and deepen devolution following Labour’s election victory in July.

Cllr Claire DouglasCllr Claire Douglas

Mayors were invited to meet with Ms Rayner and Prime Minister Keir Starmer in Downing Street after they took office to discuss expanding devolution.

LDRS has contacted the Government for further comment following the launch of the Manifesto of the North.

The deputy prime minister has said mayors could get more powers over transport, housing, planning and skills if the scope of devolution is expanded.

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The Government has not yet said whether visitor charges would be among the powers councils and combined authorities would receive as part of the expansion of devolution.

Manchester became the first city in the UK to introduce levies in April 2023 and Liverpool has since followed suit.

Manchester’s charge of £1-per-room-per-night has so far raised £2.8 million, according to the Manchester Accommodation Business Improvement District (BID) which collects the levy.

There is currently no system which specifically allows local authorities to levy charges and Manchester and Liverpool implemented them using legal workarounds.

Efforts to introduce levies elsewhere have run into obstacles including opposition from businesses who have appealed to the Government over their implementation.

Cllr Douglas told LDRS she was encouraged by the Government’s commitment to devolving more decision-making down to communities.

The council leader added that having a Labour-run council, combined authority and Government presented a huge opportunity to get more powers that might not last.

The council leader said: “Work’s going to continue and the Government’s asking us what kinds of things we’d want, I’d like to see more on being able to set a visitor tax so we can invest in our city.

David Skaith, Mayor of York and North Yorkshire, left, with other Northern mayors meeting in YorkDavid Skaith, Mayor of York and North Yorkshire, left, with other Northern mayors meeting in York

“Culture, digital and creative industries and heritage are really important to us as a city, we want to be able to offer jobs to people across different age ranges.

“Keeping people in York is a multifaceted problem, it’s about providing jobs for people to stay in our community but we also need affordable housing and business space.

“Transport also comes into it too, we need to build a system that gets jobs to people and people to jobs.

“Having a collective body working across the whole of the North will help bring viable jobs to our area.”