On 24 April 2025, Liverpool city centre’s hotels approved an alteration of the Accommodation Business Improvement District to implement a £2 a night Visitor Levy on larger hotels and serviced accommodation blocks.
This replaces the current arrangements which fund the BID through a top-up on business rates.
It will deliver £9.2 million of investment over two years, benefiting local businesses and growing the size of the local visitor economy.
The Secretary of State has now received a request from Whitbread plc for the ballot result to be voided.
The process requires the City Council and Liverpool BID Company to formally respond to the Secretary of State to address the concerns that have been raised. The Minister will then consider the response in determining whether the BID ballot needs to be declared void.
Liverpool BID Company and the Council are confident that the ballot was conducted according to legal requirements, but will examine all the concerns presented and respond to the Secretary of State comprehensively and with evidence, by the deadline of 24 June 2025.
In the meantime, the government has confirmed that receipt of the challenge does not suspend the effect of the ballot. The new BID levy therefore came into effect on 1 June 2025.
On advice from government, the Council has agreed with the BID that additional monies collected under the new levy will be held by the Council, pending the outcome of the challenge, and will be refunded to levy payers in the event that the Secretary of State determines that the ballot result should be voided.
Cllr Harry Doyle, Cabinet Member for Health, Wellbeing and Culture, said: “Liverpool’s hotels showed great commitment in supporting the Accommodation BID.
“The right to challenge the BID ballot result is built into the legislation, and the City Council and BID team will be diligent in responding to the concerns that have been raised by Whitbread.
“This does, however, reinforce the Council’s position and that of Mayors around the country that Visitor Levies would benefit from a new national arrangement, established under the proposals for devolution.
“The case for a Visitor Levy has been made and is being advocated across the UK.”
