Labour announces ‘tourist tax’ to boost England’s cities
Tourist tax to be introduced in England – how it will work
- Local leaders in England will be granted the authority to impose a “modest charge” or tourist tax on visitors staying overnight.
- The Ministry of Housing, Communities and Local Government announced this measure to channel more funds into England's cities and regions.
- London Mayor Sadiq Khan welcomed the decision, stating it would bolster London's economy and reinforce its standing as a global tourism and business hub.
- A 2017 report by the Greater London Authority estimated that a 5 per cent levy on accommodation could generate £239 million annually for the capital.
- Local government secretary Steve Reed emphasised that these new powers aim to enable mayors to invest in communities and foster growth, noting England is currently the sole G7 country where local authorities lack such powers.