Cllr Paul Swaddle OBE, Leader of Westminster City Council, has demanded that London boroughs be given their "fair share" of any tourism tax imposed by the Mayor, MyLondon has reported. Cllr Swaddle has started a petition calling on the Mayor to commit to passing on at least half of any revenue raised by an overnight levy to boroughs delivering services for tourists. The campaign follows Sir Sadiq Khan's announcement that he is planning to introduce a tourist tax in the capital, capped at 5 per cent of accommodation costs, with the exact figure not yet decided. Research suggests a £1 a night levy in London could raise up to £91 million a year for the capital.
Cllr Swaddle said:
"The reality about an overnight visitor levy is that in Europe, VAT is significantly lower and the total tax burden is lower. Our hotels across the West End and elsewhere in Westminster need to be competitive to keep us a global visitor attraction. However if the levy is to be raised, local authorities need to keep at least half to be spent locally for services that benefit visitors, such as keeping the streets clean and safe. The Mayor of London has no intention of sharing any overnight levy income with councils so there will be precisely zero benefit to Westminster residents and businesses. The cost of supporting the visitor and commuter economy in Westminster is an estimated £115 million a year and that needs to be recognised. It's important we now see the fine print of what is being proposed."
A UK Government spokesperson said:
"Mayors will be empowered to deliver more long-term, locally led investment in transport, regeneration and cultural assets that can unlock growth and make places more attractive for residents, businesses and visitors. The Government will not compel any Mayor to introduce this levy, nor will Central Government reduce funding for Mayors if they decide to do so."
Find out more and sign the petition here.
'London boroughs must get 50 per cent of Mayor's tourism tax'
Sir Sadiq Khan is introducing a tourist tax in the capital
Cllr Paul Swaddle OBE explains
"The reality about an overnight visitor levy is that in Europe, VAT is significantly lower and the total tax burden is lower.
"Our hotels across the West End and elsewhere in Westminster need to be competitive to keep us a global visitor attraction. However if the levy is to be raised, local authorities need to keep at least half to be spent locally for services that benefit visitors, such as keeping the streets clean and safe.
"The Mayor of London has no intention of sharing any overnight levy income with councils so there will be precisely zero benefit to Westminster residents and businesses.
"The cost of supporting the visitor and commuter economy in Westminster is an estimated £115m a year and that needs to be recognised.
"It's important we now see the fine print of what is being proposed."
You can read Katherine Gray's article for MyLondon in full on their website.
