Hornchurch & Upminster MP, Julia Lopez along with fellow London Conservative MPs, has written to the Mayor of London to urge him to rule out introducing an overnight visitor levy in the capital.
The MPs wrote amid growing calls for an overnight levy in England, described by many in the sector as a ‘holiday tax’, and concerns that London could be among the first places to introduce it if further powers are devolved.
In the letter, the MPs warn that London’s visitor economy is a major national asset, supporting jobs and livelihoods across hotels and short stay accommodation, pubs, restaurants, theatres, events, cultural venues, retail and transport.
They argue that for many visitors London is the gateway to the rest of the UK, meaning any policy that makes overnight stays more expensive risks knock on effects beyond central London.
The MPs said they have been contacted by UKHospitality as part of its Stop the Holiday Tax campaign, and set out concerns from across the sector that it is only now emerging from an extended period of intense pressure, including the pandemic, rising input costs, wage pressures and inflation, while still carrying high fixed costs.
The letter argues that an overnight levy would move London in the wrong direction, weakening demand and reducing discretionary spend in local communities. The MPs also warn that a levy would fall most heavily on families, who tend to travel in school holidays and stay longer, making domestic breaks less affordable.
They also highlight the wider cost pressures facing hospitality, including increasing business rates and the impact on hotels in particular. The MPs warn that adding a new visitor levy would represent a further hit to accommodation providers and their supply chains at a time when London should be strengthening its global appeal for visitors, events and conferences.
In the letter, the MPs ask the Mayor to:
- Commit publicly that he will not pursue an overnight visitor levy in London if the power becomes available
- Work with London’s hospitality and tourism sector on pro growth measures that strengthen the visitor offer, including safer town centres, reliable transport and support for events and cultural venues
- Champion meaningful reform of the cost base for hospitality, including business rates pressures that fall disproportionately on hotels and other accommodation providers
The full text can be viewed below this article.
Julia Lopez said:
“London’s visitor economy supports jobs and livelihoods across the capital and is a gateway to the rest of the UK.
“The hospitality sector is still recovering from years of intense pressure, and now faces rising costs, including business rates.
“Introducing a new overnight visitor levy would risk pricing visitors out, reducing spend in local communities and putting jobs at risk.
“That is why London Conservative MPs are urging the Mayor to rule out a ‘holiday tax’ and instead work with the sector on pro growth measures that support tourism, hospitality and local high streets.”
