Sadiq Khan is pushing for the quick introduction of a "tourist tax" in London, expected to be set at up to 5 per cent of the cost of a hotel room, according to the Evening Standard. City Hall is drawing up proposals for the new levy and how the revenue it raises, expected to run into the hundreds of millions of pounds, would be used to boost tourism in the capital. The Mayor said a "well-designed, modest levy" could help fund growth and allow the capital to "reinvest in the places, infrastructure, culture and experiences that make London one of the world's greatest cities to visit."
Business chiefs have called for the levy to be set at a flat rate of £2 to £3 rather than a percentage of accommodation costs, given hotels are far more expensive in London than in many other cities, though ministers are understood to have backed a percentage rate to protect budget holidays and cheaper hotels. There are also concerns in the hospitality sector that funds raised will not be used to increase tourism. The Mayor said he would "work closely with London's boroughs, accommodation providers, hospitality and tourism businesses and other partners, before final decisions are taken."
Cllr Paul Swaddle OBE, Leader of Westminster City Council, has previously warned there will be "precisely zero benefit to Westminster residents and businesses" unless the Mayor shares some of the revenue raised with councils, a concern this latest report does little to resolve given the Mayor's remarks focus on reinvestment under his own control rather than any commitment to share funds with boroughs.
Sadiq Khan 'tourist tax' of up to 5% sparks row as bosses condemn it as blow to London hotels
Mayor of London Lord Khan wants the new overnight levy introduced in the capital ‘sooner rather than later’
"There will be precisely zero benefit to Westminster residents and businesses" says Councillor Paul Swaddle, if the Mayor of London does not share some of the revenue raised from the new tourist tax with councils.
Read Nicholas Cecil's article in the Standard in full on their website.
