London tourist tax could raise 350million a year for the capital

"A tourist tax on overnight visitors to London could raise more than 350million per year for the capital - but central boroughs are keen to retain their fare share of the revenue. New modelling from Central London Forward (CLF), which represents 12 Central London local authorities, shows a three per cent levy on the cost of a room - whether that be a hotel or short-term let - could see 352m in extra income for the Mayor every year."

"The analysis, seen by the Local Democracy Reporting Service (LDRS), shows that the 12 CLF boroughs alone would raise 275m from a three per cent levy on hotels and short term lets, with the remaining authorities yielding an estimated 77m. This has sparked calls from the central boroughs to retain half of the additional income in order to mitigate the increased cost pressures of tourism."

Central London Forward (CLF) modelling indicates a three per cent levy on room costs could generate about 352m annually for the Mayor, substantially higher than previous 240m estimates. A percentage-based levy would treat high-end and budget travellers proportionally and avoid frequent uprating required by a flat per-night fee. The 12 CLF boroughs would collect roughly 275m, with other authorities yielding about 77m. Central boroughs, hosting 71% of hotel rooms and 67% of short-term lets, are proposing to retain half the extra income to offset tourism-related cost pressures. Westminster could raise over 95m; several central boroughs could each exceed 20m.

Read at www.standard.co.uk