The tourist tax debate returns: what it means for London hotels
🛒 London, 2026: A proposed 3% tourist tax could generate over £350m annually for the city, with Central London alone contributing £275m. Hoteliers fear this levy, amid 20% VAT and rising costs, threatens competitiveness. Westminster could raise £95m, while Camden, Kensington and Chelsea, and Tower Hamlets may exceed £20m each. Critics argue this tax, alongside high VAT, could make the UK less appealing to tourists, pushing the VAT rate to 27%. Industry seeks clarity on fund allocation.
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