London’s tourism levy will be capped at 5% of the cost of accommodation, the mayor has said.
Sir Sadiq Khan said he “strongly” welcomed plans unveiled by the government on Thursday granting mayors in England the power to set an overnight visitors’ levy – often dubbed as a tourism tax.
The government has not set a cap on the levy percentages mayors can implement, but Sir Sadiq told BBC London that the capital’s would not be above 5% of the cost of an overnight stay – the exact figure has not been determined.
Industry bodies said any levy could put tourists off visiting London, while Conservative-led Westminster Council called for boroughs to keep half the funds raised in their area.
What has the government announced?
Housing Secretary Angela Rayner provided further details on how the new powers will work following a virtual meeting of England’s regional mayors.
Under the plans, local leaders will be able to bring in an uncapped levy as a percentage of the cost of hotels, bed and breakfasts and other types of accommodation rather than a flat fee.
A government spokesperson said it would protect budget holidays “by making sure low-cost accommodation always pays lowest levy”. read more…. source….https://www.bbc.com/news/articles/cvgyre58e33o
