Picture courtesy of Shutterstock

 

A new tourist tax in London is on the horizon as Mayor Sadiq Khan welcomes potential powers allowing for its implementation. Chancellor Rachel Reeves might soon grant local authorities the right to levy such a tax via the English Devolution and Community Empowerment Bill now in Parliament. This levy could generate up to £10.6 billion annually.

 

London hosted 89 million overnight stays in 2024, and the move could align the capital with other major cities within the G7, where similar levies exist. Currently, England stands alone in preventing local tourist taxes. Scotland and Wales have already embraced different models, with Wales set to collect around 58 baht per night from 2026.

 

A recent report by the Centre for Cities indicated that either a flat fee or percentage-based levy could suit London best. The Greater London Authority is considering these models, as other G7 cities like New York and Toronto have seen significant revenue increases from similar systems. A GLA estimate suggests a modest £1 (44 baht) daily charge could raise £4.2 billion, while a 5% levy might bring in £10.6 billion.

 

Andrew Carter of the Centre for Cities supports the idea, citing potential economic growth and infrastructure improvements. He emphasised the flexibility of percentage-based levies, which can be adjusted according to demand. The revenues could benefit local governments significantly, especially if distributed between City Hall and boroughs.

 

However, the potential tax has faced criticism from the hospitality sector. UK Hospitality's Kate Nicholls labelled the idea "shocking," arguing it could deter both international visitors and domestic tourists. With existing high VAT rates, she worries that these taxes could threaten jobs and investments by driving potential visitors away.

 

Local councils like Westminster have long advocated for a tourist tax, arguing it could help balance local financial burdens. Other councils, such as Southwark and Brent, have shown support, viewing it as a potential revenue stream that would aid local economies without heavily impacting consumer behaviour, according to the BBC.

 

The mayor's office cautiously embraced the potential changes, awaiting further developments. The proposed tax is seen as a way to bolster the economy and strengthen London's position as a global destination. The Ministry of Housing, Communities and Local Government is open to discussions, potentially paving the way for the tax, even as formal announcements are pending.

 

 

 

Key Takeaways

 

• London may soon introduce a tourist tax, generating up to £10.6 billion.
• The potential levy aligns with practices in other G7 cities, aiding economic growth.
• Hospitality industry concerns centre on potential visitor deterrence and economic effects.

 

  Adapted by ASEAN Now from BBC 2025-11-24

 

 

 

Good to see London taking its ideas from Thailand...  😹

Having bled every last penny from the (working, law abiding) residents of London this parasite needs a new organism from which to leech. 

 

So now, not only do tourists to London need a stab vest but they need to pay a tourist tax. 😀

Like in so many other places : decades of disastrous public finances management lead to a desperate quest for the last target to tax. It's one over the other, over the former...
No bright future with such a vision.
But again, it's definitely not specific to London or the UK. The disease is widespread.

Even if what I read about London in the media is only half true I could not think of one reason why anyone would want to visit London

39 minutes ago, wombat said:

Even if what I read about London in the media is only half true I could not think of one reason why anyone would want to visit London

Don't worry, it's not remotely true.  London remains one of the world's greatest cities to visit.

18 minutes ago, brewsterbudgen said:

Don't worry, it's not remotely true.  London remains one of the world's greatest cities to visit.

 

Stop gaslighting.

 

 

Tourists spend money and when doing so they pay Value Added Tax the same as everyone else.  Then further taxes may be paid on profits, if any, by the businesses.

But maybe there is a shortage of revenue to pay for illegal immigrants, so tourists must be made to support this added inducement to their visit.

Like it isn’t expensive enough already! 

hopefully Thailand follows London's lead... sooner the better.

Just now, Ralf001 said:

hopefully Thailand follows London's lead... sooner the better.

Why.....?  🤫

3 hours ago, wombat said:

Even if what I read about London in the media is only half true I could not think of one reason why anyone would want to visit London

It isn’t.

Will tourists get a free stab vest,  when they pay the new Tax.

 

The world urgently needs to embrace higher taxes as governments struggle with dwindling revenues. It is time to advocate for a global tax that can ensure fair funding for essential services and support sustainable development across nations.

14 minutes ago, Ralf001 said:

hopefully Thailand follows London's lead... sooner the better.

 

I already pay enough in 'Falang Tax'

 

 

3 minutes ago, Mickeem said:

 

I already pay enough in 'Falang Tax'

 

 

Me too, was glad I was able to my get personal income tax over to the BOI scheme at 17% flat rate.... thats saves me a good chunk each month.

London is an exciting city. It suffers from the same social problems that exist in all major cities in the world except for mass shootings.

 The art, architecture, food, diversity of culture all combine to make it great.

Three times democratically elected Mayor Sadiq Khan is hated by far right bigots so he must be doing the right thing.

17 minutes ago, quake said:

Will tourists get a free stab vest,  when they pay the new Tax.

 

 

Or maybe a free copy of the Quran.  

Nice. 

Just now, quake said:

 

Or maybe a free copy of the Quran.  

Reading the Quran is vital for all of us. Embracing our diversity is what truly strengthens us.

3 minutes ago, nick supreme said:

Reading the Quran is vital for all of us. Embracing our diversity is what truly strengthens us.

 

Yes .

I could not have put it better. 

Interested to know how they define a tourist. Anyone staying in a London hotel is a tourist, regarding nationality? Someone travelling from Manchester to London for a couple of nights is a tourist?

Be nice to see the fine print on this one as I suspect most people assume a tourist is from overseas on a holiday in London.

33 minutes ago, Ralf001 said:

 

Thaks for your valued input, now <deleted> off and annoy someone else.

Why?

 

6 hours ago, JonnyF said:

Having bled every last penny from the (working, law abiding) residents of London this parasite needs a new organism from which to leech. 

 

So now, not only do tourists to London need a stab vest but they need to pay a tourist tax. 😀

Yet the good people of London voted him in, not once, not twice, but three times - so must be getting something right.

Troll / flame removed also a reply to it

3 hours ago, JonnyF said:

 

Stop gaslighting.

 

 

 

Well, I'm a Londoner as are most of my friends.  Have you ever been there?

 

Here's a link that might help:  https://www.worldsbestcities.com/rankings/worlds-best-cities/

Tens of millions of visitors per year, none paying for the city’s infrastructure and services they use.

 

It’s entirely reasonable to require them to make a tax contribution.

 

 

3 hours ago, Chomper Higgot said:

It isn’t.

Yeah it is my cousin went there got her phone took by 3 black guys on Oxford street at 2pm that place worse than Brooklyn now

1 hour ago, Chomper Higgot said:

Tens of millions of visitors per year, none paying for the city’s infrastructure and services they use.

 

It’s entirely reasonable to require them to make a tax contribution.

 

 

 

We are discussing tourists not illegal immigrants. 

2 hours ago, brewsterbudgen said:

 

Well, I'm a Londoner as are most of my friends.  Have you ever been there?

 

Here's a link that might help:  https://www.worldsbestcities.com/rankings/worlds-best-cities/

Lived there a number of years but the writing was on the wall. I saw it earlier than most. 

 

My lib mates lasted a decade longer before moving to the shires due to violent incidents against them in fashionable postcodes.

 

Best you stick to cycling around Rayong. Places like London are no place for nostalgic white Liberal pensioners. 

 

3 hours ago, jvs said:

Why?

 

Because he is an annoying baiting <deleted> on nearly every post I make.