Families could face a tourism tax of up to £300 on British staycations in some of the country's most popular holiday spots.
Mayors and council leaders are looking to follow in the footsteps of the likes of Manchester, Liverpool and Edinburgh to introduce the levy to raise revenue in their areas.
Research suggests that regional mayors including in Yorkshire, the West Country, the North East and the Midlands are backing the introduction of a more widespread tax - areas that account for almost 40 per cent of domestic tourism.
Councils are also considering their own levies in areas such as Oxford, Bournemouth and Bath.
There is no single approach to introducing a tourist tax, with methods ranging from a simple £1 to £2 extra per night per person added to accommodation costs, to a more robust percentage-based model.
Mayors may look to other cities for inspiration such as Amsterdam - where 12.5 per cent of overnight stay costs is added onto the bill.
With an average week-long staycation for a family of four costing £2,765, this would add £345.
But local authorities could also look closer to home, with a seven per cent levy in Aberdeen adding almost £200 and a five per cent tariff in Edinburgh inflating the cost of a getaway by a more reasonable £138.
Mayors and council leaders are looking to follow in the footsteps of the likes of Manchester, Liverpool and Edinburgh to introduce the levy to raise revenue in their areas
In Manchester, Andy Burnham was one of the most vociferous proponents of the levy, which was first introduced in April 2023
In England mayors have so far adopted a different approach, introducing a flat fee of up to £2 per night per person to be added onto a family's accommodation bill.
Unlike in Scotland and Wales, these levies have been brought in under the 'business district' scheme - the government is still finalising its plans for official tourist tax policy.
In Manchester, Andy Burnham was one of the most vociferous proponents of the levy, which was first introduced in April 2023.
The Government's new 'Overnight Visitor Levy Bill', announced in the King's Speech, will allow English regional mayors to hit tourists with an extra charge on overnight stays.
When plans are announced many will look to see if a cap is introduced, restricting the maximum amount any family can be charged per stay, or the number of consecutive days the levy applies to.
It is currently thought the government is considering allowing up to five per cent of the cost of a stay.
Authorities claim such taxes could be vital to the local economy and help rejuvenate many of Britain's struggling holiday hotspots - from renovating crumbling piers in seaside towns to protecting footpaths in national parks such as the Peak District.
But the move towards the levies has the hospitality industry concerned.
Currently, tourism makes up around five per cent of the British economy and supports almost 2.5 million jobs. Some worry that introducing a tax in certain areas could drive families away, or even abroad, for cheaper getaways.
Hospitality UK recently had a paper commissioned by Oxford Economics which warned around 33,000 jobs could be at risk and tourist spending drop significantly if the extra charges are introduced.
The Confederation of British Industry (CBI) has also spoken out against the plans and business owners have warned a tourism tax could add £500 million a year to the cost of UK breaks.
Alice Jeffries, head of tax policy at CBI, claimed the fee could even cause employment issues and create tight margins for the industry.
She said: 'The Government should be sending a clear message that Britain is open for business and tourist visitors alike - not making it harder for people to spend their time and money here.'
But the financial incentive for authorities is clear - recent estimates show that a proposed tax in London could raise as much as £350 million per year - significantly more than the £240 million originally forecast.
A spokesperson for the government said the exact design for a tourism tax 'has not been decided' and explained how it will help areas 'benefit from tourism' as well as give mayors more cash 'to invest in local priorities'.
Shadow chancellor Sir Mel Stride said that the new family holiday tax will be 'a blow for seaside towns and hit families in the pocket' – and that the Conservatives would oppose the new tax when Labour bring it to Parliament in the next parliamentary session.
He said: 'At a time when every penny matters, my message to Rachel Reeves is clear: hands off our holidays.'