00:00Holiday makers coming to London could have to pay a nightly tax on hotel stays and Airbnb style visits in plans expected to be announced by Rachel Reeves in the upcoming budget.
00:17The Chancellor is reportedly planning to give mayor's powers to raise taxes by charging tourists on a cost of overnight accommodation in their cities.
00:29Now the tax could raise hundreds of millions of pounds for mayors including London's very own Sadiq Khan and money to invest in transport and public services but it would represent a further blow for the hospitality industry or so it could which was squeezed by tax rises and extra employment costs announced in the last budget.
00:55But it's not just tourists coming to the UK that would have to pay the tourist tax. It also includes British tourists booking hotels across the UK as well.
01:07The Trade Body UK Hospitality which represents thousands of restaurants, pubs and hotels said a tourism tax of just 5% which is the rate to be set in Edinburgh from next July would mean an effective consumer tax of 27%.
01:25That figure though includes standard 20% on the hotel stay as well as the VAT on the holiday tax itself making it one of the highest tourist tax rates in the whole of Europe.
01:39UK Hospitality estimated that a 5% tax could cost Britain's £518 million in additional costs.
01:51So then what do Londoners think about a tourist tax right here in the capital?
01:56In theory it sounds like a good idea I think thinking about it for 30 seconds. You just take account of it as part of your holiday right so you're kind of yeah you just see it as like an additional tax I guess as it is so it doesn't bother me in other countries and as long as people are aware of it I guess before they get here.
02:16Yeah well I think most tourists who come to London it's kind of maybe a once in a lifetime thing it's going to be expensive anyway and I probably hardly notice a little bit extra I'd say yeah maybe to local councils to like affordable housing.
02:31I mean people do already pay for TFL when they're on it though do you know what I mean so pay if it's just going towards the tubes that feels a bit unfair because they're already paying for that when they get on it anyway and if they're using it.
02:40But I guess if it's the day-to-day running and keeping things going and even down to councils or individual councils like getting rid of rubbish and getting rid of like bottles of beer that are left outside when I guess tourists and people from London go on nights out then it then that makes sense to me.
Be the first to comment