Tourists visiting the UK may soon face new charges as local councils explore the introduction of visitor levies to support services strained by over-tourism. The proposed levies, aimed at addressing the challenges posed by record visitor numbers, follow similar measures in popular European destinations like Berlin and Barcelona.

Nearly half of Scotland’s local councils, including Highland, Orkney, and the Western Isles, are currently considering the implementation of a tourist tax. Highland Council has already initiated consultations on a 5% overnight stay levy, potentially raising up to £10 million annually. The revenue would be used to improve local infrastructure and services. Edinburgh, the UK’s capital, is set to become the first city in the country to implement a mandatory levy, with plans to introduce it in July 2026. The city expects to generate £50 million per year through the new measure.

In Wales, the government is also set to unveil proposals for a visitor levy, focusing on popular tourist hotspots like Gwynedd, Pembrokeshire, and Cardiff. The aim is to fund tourism-related services and local amenities.

Ken Gowans, the economy chair of Highland Council, emphasized the need for sustainable tourism practices, noting, “The wear and tear isn’t caused by locals, but they’re paying for it through council tax. If we have this money, we can maintain and improve services for visitors and residents alike.”

The issue of over-tourism has been particularly acute in areas such as Skye’s fairy pools, the North Coast 500 route, and Orkney’s Neolithic sites. Popular destinations have faced challenges such as overcrowded roads, overwhelmed campsites, and environmental concerns. The travel guide Fodor’s recently included the North Coast 500 on its “No list,” citing the impact of high visitor numbers on the region’s infrastructure and environment.

In the Lake District, a study suggested that charges for overnight stays or vehicle use could help mitigate the environmental strain caused by the 18 million visitors the park receives annually, despite having just 40,000 residents.

While some in the tourism industry, including VisitScotland, support the levy as a means to invest in sustainable tourism, others are more skeptical. Critics, including hoteliers in Inveraray, argue that the tax could discourage visitors, potentially harming local businesses. However, Michael Hill, CEO of Friends of the Lake District, pointed out that similar levies in Europe have helped improve tourism destinations. “In many cases, visitor numbers actually increase after a levy is introduced because the place becomes better,” he said.

As UK councils move closer to implementing visitor levies, the goal is to balance the needs of local communities with those of tourists. By reinvesting the revenue into infrastructure, the levies aim to support sustainable tourism and ensure long-term benefits for popular destinations.

British pension savers are set to benefit from Donald Trump’s election victory, as the former US president’s pro-business policies have led to a surge in stock markets, particularly in the United States, according to Andrew Evans, CEO of Smart Pension, a leading UK retirement business.

Evans highlighted that the rise in US market performance has positively impacted UK pensions, particularly those with investments in American assets. “American markets have been incredibly bullish since Trump’s victory, benefiting UK pension savers with funds tied to US assets, whether they realise it or not,” he said.

Smart Pension, which manages retirement savings for over 1.4 million people, has approximately 52% of its main fund invested in US markets. Following Trump’s election, the S&P 500 index surged by 5%, reaching a record high of 6,001.35 points. While the index has since dropped slightly to 5,863.69 points, it remains 2.6% higher than its pre-election level and has gained 12.8% since August. Similarly, the Nasdaq Composite Index also hit record highs and is still up 2.6% since November 4.

Despite concerns over Trump’s trade policies and the potential for disruption in global markets, investors remain optimistic about his promises of corporate tax cuts and a pro-growth agenda. Evans noted, “Trump’s policies promoting American growth and company assets will benefit global pension funds.”

In the UK, Chancellor Rachel Reeves has proposed significant changes to workplace pensions, advocating for the pooling of smaller pension pots into “megafunds” worth £80 billion. These larger funds would be able to invest in a wider range of assets, which could drive greater growth and returns for savers.

Evans expressed support for this initiative, noting it aligns with Smart Pension’s mission to modernize and transform retirement savings. The company currently allocates 6% of its master fund to private markets, with plans to increase this investment moving forward.

However, Evans called for additional government incentives to stimulate domestic growth, particularly in light of Chancellor Reeves’ £41.5 billion in tax hikes announced in the recent Budget. “Promoting growth while imposing significant tax increases is a challenging balance. Additional structural measures are needed to support investment in the UK,” he said.

As both the US and UK economies navigate these changes, the actions of both governments are expected to shape the future of pension savings and investments.