Travellers visiting London may soon have to pay a new tourist tax when they stay overnight in the city, according to reports. The proposed levy would apply to hotel rooms, short-term rentals such as Airbnbs, and other visitor accommodations.
The tax is part of broader plans being considered by the UK government and London officials to give local authorities more power to raise revenue. If approved, London would join cities like Paris, New York and Edinburgh that already collect similar visitor levies.
Under the proposal, the levy could be set as a percentage of the accommodation cost — potentially around 5% of the hotel or rental bill — or a small nightly fee. Estimates suggest the tax could raise hundreds of millions of pounds a year for city services, infrastructure and tourism development.
London Mayor Sadiq Khan has expressed support for the idea, saying a modest tax “would boost the city’s economy and help strengthen its status as a global destination.” The measure is expected to be approved by the UK government and could be finalised once consultation and legislation progress in 2026.
The exact start date, rate and exemptions have not yet been confirmed. Officials say details will be worked out with input from local authorities and the tourism industry before implementation.
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