Tourist Tax likely to be introduced for London

The mayor of London has cautiously welcomed reports that he is to impose a tourist levy on visitors staying overnight in the capital. Chancellor Rachel Reeves is expected to give Sir Sadiq Khan and other civic chiefs the authority to do so through the English Devolution and Community Empowerment Bill, which is currently going through Parliament. Sir Sadiq has been vocal in calling for such powers to be devolved, with estimates suggesting a tourist tax in London could raise up to £240m a year. In 2024, London saw 89 million overnight stays. Currently England is the only country among the G7 (Group of Seven) – the world’s seven largest so-called “advanced” economies – where national government prevents local authorities or mayors from implementing tourist levies.