Statement on Budget announcement of a Tourism Tax in London
Chair of the GLA Oversight Committee, Bassam Mahfouz AM, said:
“London’s devolution settlement faces significant challenges, chief among them are its limited fiscal powers. It’s great to see London taking one step closer to further fiscal devolution in the announcement from the Chancellor today.
“In September this year, the GLA Oversight Committee published its take on the potential impacts of the Government’s devolution proposal on London.
“The Committee made 14 recommendations in its report ‘Trusting London to deliver: A new devolution settlement for the capital’, which included implementing a tourism levy on overnight accommodation, with revenues ringfenced for investing in infrastructure and services that enhance London’s appeal as a place to live and visit. This was a measure backed by 41 per cent of Londoners.1
“A tourism levy promises to be a win-win: a promising opportunity to raise vital funds, improve services for residents, and strengthen London’s global appeal as a top world destination. Compared with other global cities, London has long been an outlier in not having one.
“I’ve already called on the Mayor to work closely with the Government, London Assembly, London Councils, business representatives, and tourism sector stakeholders to ensure the tourism levy is operational by April 2027 for the benefit of both Londoners and tourists alike.”
Notes to editors
- In a YouGov survey commissioned by the GLA Oversight Committee as part of its investigation into London’s place in the Government’s proposed devolution reforms, Londoners answered questions about the powers of the Mayor of London and the cross-party London Assembly. The survey results are attached and can be found here
- The report can be found here
- Bassam Mahfouz AM, Chair of the GLA Oversight Committee, is available for interview.
- Find out more about the GLA Oversight Committee investigation into London’s place in the Government’s proposed devolution reforms.
- Find out more about the GLA Oversight Committee.
- As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
For media enquiries, please contact Alison Bell on 07887 832 918. For out of hours media enquiries, call 020 7983 4000 and ask for the London Assembly duty press officer.