The Chancellor is preparing to give mayors across the UK permission to introduce a tourist tax on those spending a night in their cities, expected to be approximately 5 percent, in line with a similar levy introduced in Edinburgh next July.

The tax, which would be added to the existing VAT of 20 percent, is predicted to cost domestic tourists an additional £518m in additional costs, a fact UKHospitality said “will only serve to ramp up prices.”

“I know the government is worried about the cost of living, but this holiday tax is little more than a higher VAT rate for holidaymakers,” said UKHospitality chair Kate Nicholls.

“Brits take more than 89 million overnight trips in England, and stay for a total of 255 million nights. This is a bill we will all have to pay, and will only serve to ramp up prices and drive inflation.”

The changes are expected to be introduced via the English Devolution and Community Empowerment Bill.