Julia Lopez MP has condemned the Government’s decision to include an Overnight Visitor Levy Bill in the King’s Speech, warning that it could pave the way for a new London “holiday tax” on overnight stays in the capital.
The Bill would give mayors and potentially other local leaders in England new powers to introduce an overnight visitor levy. The Government says the measure is intended to raise revenue for local priorities, public services and visitor economy improvements.
The Mayor of London has strongly welcomed the move, with his own briefing setting out a preference for a percentage based levy in London. The Mayor’s briefing states that a 3% levy could raise upwards of £325 million a year in the capital.
Mrs Lopez has already joined London Conservative MPs in warning against the proposal. In a joint letter to the Mayor earlier this year, the MPs urged him to rule out pursuing a London “holiday tax”, arguing that it would weaken demand, reduce spending in local communities and place another burden on hotels, restaurants, theatres, cultural venues and small businesses.
The Government’s own briefing presents the Bill as part of a wider push toward fiscal devolution, giving mayors and local leaders greater revenue raising powers. Mrs Lopez warned that, in practice, this could mean giving the Mayor of London another power to raise money from residents, visitors and businesses at a time when costs are already high.
Julia Lopez MP said:
“London Conservative MPs warned the Mayor not to pursue this damaging holiday tax, but Labour has now opened the door to it in the King’s Speech.
“This is being dressed up as fiscal devolution, but for families, visitors and businesses it risks becoming yet another added cost.
“London is one of the greatest cities in the world, but we should not take its success for granted. Hotels, restaurants, theatres, cultural venues and small businesses are already facing serious cost pressures. Adding another charge on overnight stays sends completely the wrong message.
“This is not just about central London. Outer London businesses like those in my constituency also benefit from visitors, family stays, local events and people travelling into the capital for work, health appointments or leisure. A new levy could make London more expensive and less competitive, while handing the Mayor yet another revenue raising power.
“I opposed this before alongside London Conservative colleagues, and I will continue to argue that London needs lower costs, better transport, safer streets and stronger local economies, not a new tax on people coming to our capital.”
