Overview
- Ministers are considering giving mayors powers to charge overnight visitor levies through the English Devolution and Community Empowerment Bill, with hotels and short‑stay lets in scope.
- Sadiq Khan has signalled cautious support for a modest charge in London, saying revenue should be reinvested to support the visitor economy.
- UKHospitality opposes a new levy, warning a mooted 5% charge on accommodation would raise costs for consumers and function like an effective 27% tax load when combined with VAT.
- The New West End Company backs a clear, fixed nightly fee rather than a percentage, noting a 5% levy would add about £11.50 per night on an average £230 London hotel stay and insisting proceeds go to improving the visitor experience.
- Estimates cited in reporting suggest a 5% levy could raise around £240 million a year in London, while existing ABID schemes provide an alternative model and Scotland and Wales are moving ahead with their own local charges.