Support for a London-wide tourist tax appears to be growing after the Liberal Democrats and Green Party on the London Assembly backed calls for the mayor to be given powers to implement one.
Sir Sadiq Khan continues to support a “modest overnight accommodation levy” for any visitors to the capital, the Labour mayor’s office said on Monday as a new report urged the government to give local leaders the power to impose the tax.
In England, local councils currently do not have the power to introduce a tourist tax, but the Autonomy think-tank has told ministers that giving local leaders the necessary powers would reduce the strain on public services.
Last month The Greenwich Wire revealed that Greenwich Council would support a borough-wide tourism levy, while Brent Council has launched a campaign for one. In Southwark, councillors have called for a London-wide levy.
But the Labour government has continued to resist the calls.
Khan said in June: “London attracts millions of visitors every year who come here to experience our world class museums and galleries, visit our historic attractions and enjoy an amazing array of sporting events.
“A modest overnight accommodation levy, similar to other international cities, would boost our economy, deliver growth and help cement London’s reputation as a global tourism and business destination.”
Visitor levies are charged in parts of Manchester and Liverpool but through a legal workaround, where hotels and serviced accommodation providers form “accommodation business improvement districts”, which can add the charge to guests’ bills. In Manchester city centre and parts of Salford, guests are charged £1 per room, per night, while in Liverpool the cost is £2.
Last month a YouGov survey commissioned by the London Assembly’s oversight committee found that 41 per cent of Londoners backed the Mayor’s Office having the powers to levy a tourism tax.
Hina Bokhari, who leads the Liberal Democrat group on the assembly, said: “It’s past time London just got on with it and introduced a tourism tax – a small sum for tourists, which would add up to a big investment in our city. Manchester’s done it, Liverpool’s done it – it’s time we joined them.”
A spokesperson for the Green Party on the London Assembly said: “We will ask hotels and bed and breakfasts to opt in to a modest nightly levy of 50p, with the potential of raising £50 million annually.
“This funding would be dedicated to supporting initiatives throughout our manifesto, aiming to enrich and equalise access to arts, sports, and culture, beginning with areas with the least access to local activities.”
Reform UK opposes a tourism tax. Its assembly member, Alex Wilson, said a levy would “only drive visitors away and cripple London’s economy further”.
The Conservative group on the London Assembly declined to comment on whether they supported or opposed a tourist tax in the capital.
A Ministry of Housing, Communities and Local Government spokesperson said: “There are currently no plans to introduce a tourism tax in England. Places including London can already choose to introduce a levy on overnight stays through the Accommodation Business Improvement District model.”
Kumail Jaffer is the Local Democracy Reporter covering London’s mayor and assembly, based at MyLondon. The Local Democracy Reporting Service is a BBC-funded initiative to improve the coverage of councils in the local media.
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