Local leaders will be allowed to levy a “tourist tax” on overnight stays, the government has announced.
Local leaders in England will be given the power to impose a “modest charge” on visitors, the Ministry of Housing, Communities and Local Government said.
Announcing the measures ahead of the Budget on Wednesday, local government secretary Steve Reed said: “Tourists travel from near and far to visit England’s brilliant cities and regions.
“We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”
England is currently the only G7 country where local authorities are prevented from implementing tourist taxes.
London mayor Sadiq Khan, who has been a vocal proponent of the measure, welcomed the announcement, saying it is “great news for London.”
He added: “The extra funding will directly support London’s economy, and help cement our reputation as a global tourism and business destination. It also shows what can be done when ministers work closely with Mayors to devolve more powers to cities and regions.
“As part of developing our plans for the levy we will work closely with the hospitality and tourism sectors to ensure it delivers the maximum benefits for London and our brilliant businesses.”
A research report from the Greater London Authority in 2017 estimated that a 5 per cent levy on the cost of accommodation could raise £239m per year in the capital.
A consultation on details of the measure will run until February 18.
This is a breaking news story. More to follow…
