London Mayor Sadiq Khan revealed he is 'happy to look into' the possibility of bringing in a small charge for visitors to the capital - although no figure has yet been suggested.
Sadiq Khan is considering a tourist tax in London's hotels despite warnings from hospitality bosses that it would be 'extremely damaging' for businesses.
According to The Standard, the Labour Mayor said: 'I'm happy to look into where it's worked, what the issues are in relation to that particular policy... We'll be looking at what cities are doing not just across Europe, but in the UK as well.' 'The UK already ranks poorly in its competitiveness on the global tourism stage, with our high rate of VAT, and the introduction of a tourist tax would only damage that further.
The UK's first so-called coastal tourist tax across Bournemouth, Christchurch and Poole in Dorset was approved in May following a ballot of hoteliers. It would have required guests staying in larger hotels to pay an extra £2 per room, per night - but this was then put on hold in July following opposition from more than 40 hotels who lodged an appeal with the government over how the ballot was conducted.
'This tax would be another cost to them, with punitive knock-on effects to hospitality. The tourist tax would be another revenue stream for Sadiq Khan to waste on frivolous projects and giveaways to his union mates, let's be very clear. 'I like the principle. I think it's a good idea, but I think how you operate it is really important.'
And Liberal Democrat Assembly Member Hina Bokhari said she was 'very supportive' of the levy which could help support the capital's nightlife sector. Both city councils brought in tourism-based Business Improvement Districts in April 2023 which collect additional business rates payments from firms operating in specified areas.
The levy is 1.6 per cent of a property's rateable value, rising to 4.5 per cent in 2024/25 and 2025/26. It is expected to raise £939,000 per year in the latter two years. Thanet District Council in Kent had also been considering a tourist tax, but dropped the plans in April after concluding it does not have the power to implement them.
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