Barcelona, Paris, Venice and other cities already have a tourist tax in place
An East London council leader has called on Sadiq Khan to introduce a £2 tourist tax as soon as possible. The Mayor of London says he supports a “modest overnight accommodation levy” for visitors staying in the capital, despite backlash from the government.
Support for a London-wide tax is growing in the London Assembly with the Lib Dems and Greens both backing calls for the Mayor to be given powers to implement one. The sole Reform UK Assembly Member Alex Wilson opposes the move claiming it will only drive tourists away, while the Conservatives are yet to make their position clear.
Ray Morgan, who leads Havering Council, said London should join Liverpool and Manchester in introducing the tax. He said: “It is about time we take advantage of the visitors that stay in the Capital to support local councils. I feel it is time that a visitor levy is brought in so that it provides an additional stream of much-needed funding to help support our boroughs. I know many of my colleagues across London are also supporting this.
“Like in Liverpool and Manchester, a small fee per stay of say £2 can go a long way for us. Clearly, if this were to happen, we need to ensure that any money is fairly shared across the London boroughs. Havering, for example, has benefited from better transport connections such as the Elizabeth Line.” Cllr Morgan is urging City Hall to “stop delaying” and introduce it as quickly as possible.
Why is there a debate around tourist tax?
The UK is somewhat behind the curve compared to Europe when it comes to tourist tax. Paris, Barcelona and a host of other cities already have a charge in place for visitors.
They are used to generate more money for city authorities while also addressing the impacts of tourism. A report commissioned by The Autonomy Institute in August urged the government to introduce it in the capital.
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.
Several London councils, including Brent, Greenwich and Southwark, have called for borough-wide levies in recent months, though Southwark councillors passed an amended motion seeking only to do so as part of a city-wide tax.
The government has continued to resist calls for local tourist taxes and confirmed after the report was released there were no plans to introduce them. In June, alongside other Mayors of major cities, Mr Khan said: “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.”
Opposing the tax, Reform UK Assembly member Alex Wilson said: “Sadiq Khan has failed London. Due to his incompetence, tourists from Australia, France, Canada – even Mexico – are being warned to ‘exercise caution’ when visiting the UK because ‘petty crime is common, including pickpocketing’.
In 2017, the London Finance Commission estimated that a tourist levy could yield anywhere from £77 million to £240 million annually in London.
Do you think London would benefit from a tourist tax? Let us know in the comments below.
Looking for more from MyLondon? Subscribe to our daily newsletters here for the latest and greatest updates from across London.
