A London tourist tax may be a step closer after the capital’s mayor Sadiq Khan said he was “happy to look into” proposals.
A London tourist tax may be a step closer after the capital’s mayor Sadiq Khan said he was “happy to look into” proposals.
During a discussion at the Centre for London thinktank’s annual conference he 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."
However, it seems unlikely a tax will be introduced imminently as Khan added: "Let’s wait and see what the evidence is. I’m somebody who believes in following the evidence."
He added that his team would be examining evidence from other cities, including Manchester, where a levy of £1 per room, per night, plus VAT, was introduced in April 2023.
If introduced in London, the tax is likely to be a fixed-price, per-night levy added to the price of every night booked in accommodation in the capital by overseas visitors.
The proposals received cross-party support at the meeting, but Kate Nicholls, chief executive of UKHospitality, warned that such a move could deter tourists already stung by the UK’s high VAT rate.
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