Mayor of London Sadiq Khan has confirmed that plans are being developed for a tourist levy in the capital, saying the measure could raise “millions” to fund major improvements across the city.
The levy is intended to “supercharge London’s economy” and bring the capital in line with other leading global destinations.
“London is the greatest city in the world, but there’s always more to do,” Khan said in a statement on X. “A tourist levy would make it an even better place to live and visit for everyone.”
The proposal would introduce a small nightly charge for hotel stays, similar to the tourism levies used in cities including Paris, New York, Barcelona and Amsterdam. Revenues would be used to support public services, infrastructure and cultural initiatives that underpin London’s tourism and hospitality economy.
Responding to the announcement, Antonia Jennings, CEO of Centre for London, said a levy was long overdue.
“London is an international tourist destination, adding tens of billions to our economy. A tourist levy brings us in line with other global cities, ensuring both residents and tourists benefit from our visitor economy,” she said.
Jennings stressed that the measure must be formally legislated and devolved to the Mayor to ensure funding is spent where the need is greatest — not only in central boroughs, which would generate the bulk of the revenue.
“A tourist levy is an easy tax to implement and would bring the capital up to the level of powers already permitted to other UK and global cities,” she said. “It’s a first step — not even close to a full programme for fiscal devolution.”
She added that London needs broader powers to raise and control its own income.
“If we have the means to invest in our streets, our infrastructure and our arts sector, we can support inclusive economic growth — not just in the capital, but across the UK.”
The proposed levy is expected to form part of a wider push for fiscal devolution and long-term investment in London’s economy, though final details and timelines have not yet been confirmed by City Hall.