
"The mayor of London has cautiously welcomed reports that he is to impose a tourist levy on visitors staying overnight in the capital. Chancellor Rachel Reeves is expected to give Sir Sadiq Khan and other civic chiefs the authority to do so through the English Devolution and Community Empowerment Bill, which is currently going through Parliament. Sir Sadiq has been vocal in calling for such powers to be devolved, with estimates suggesting a tourist tax in London could raise up to 240m a year."
"In 2024, London saw 89 million overnight stays. Currently England is the only country among the G7 (Group of Seven) - the world's seven largest so-called "advanced" economies - where national government prevents local authorities or mayors from implementing tourist levies. Scotland and Wales have both recently introduced different types of taxes on overnight visitors, with local authorities in the former able to set their own levy as a percentage rate of the daily bill for accommodation."
Chancellor Rachel Reeves is expected to grant London and other civic leaders the power to introduce a tourist levy through the English Devolution and Community Empowerment Bill. Estimates suggest a London tourist tax could raise up to 240m annually after 89 million overnight stays in 2024. England currently prevents local tourist levies, unlike other G7 countries. Scotland and Wales have introduced overnight-stay taxes, with Scotland allowing percentage-rate levies and Welsh authorities able to collect 1.30 per night from 2026. Centre for Cities analysis identifies three levy models used by major cities: percentage rates, flat fees, and variable charges by location and accommodation rating.
Read at www.bbc.com
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