Tourist tax to start in London with extra charge for overnight stays

Uk- Visitors to London will soon face an additional charge on hotel and short-term accommodation bookings after the government signalled it will give the capital powers to introduce a tourist tax.
Chancellor Rachel Reeves is expected to use her Budget on 26 November to allow mayors in England, including London’s Sadiq Khan, to impose a “transient visitor levy” on overnight stays. The London tourist tax could raise £250 million a year.
The fee – likely to be between £1 and £2 per night – would apply to hotels, bed-and-breakfasts, and short-let properties such as Airbnb. It is expected to raise up to £200 million a year for the capital.
A similar scheme is already being prepared by Lambeth Council in south London, which has branded its version the “Love Lambeth Levy” and plans to launch it in early 2026.
Supporters say the money will help pay for street cleaning, public transport and cultural venues used heavily by tourists. Critics in the hospitality sector argue that London’s hotels are already among the most expensive in Europe and warn the tax could deter visitors.
Scotland, Wales, Manchester and Liverpool already operate or are introducing tourist taxes. London would become the largest English city to do so.

Who pays? Only overnight visitors – day-trippers and London residents are exempt.

Where does the money go? Straight back into the city: cleaner streets, better parks, more buses and Tubes, and keeping attractions in good shape.

Will it actually put people off? Unlikely. Paris charges up to €14 per night in luxury hotels and still broke visitor records this summer. London’s version will be one of the lowest in Europe.

Bottom line: it’s roughly the price of a coffee. Your trip will still be worth every penny – just expect a tiny line item on the hotel bill.

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