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Rachel Reeves is expected to announce plans for a new nightly levy for British holidaymakers and foreign tourists on hotel stays and Airbnb-style rentals
The chancellor is set to give mayors sweeping powers to raise taxes by charging tourists on the cost of an overnight stay.
The move is expected to raise hundreds of millions of pounds for mayors such as Sir Sadiq Khan and Andy Burnham to invest in transport and public services in their cities
The UK is seen as an outlier in not having a tourism tax
UKHospitality says a levy of 5 per cent, the rate set by Edinburgh last year, would mean an effective consumer tax of 27 per cent on hotel stays once VAT is taken into account
The measures will be introduced using amendments to the English Devolution and Community Empowerment Bill, which is making its way through parliament
thetimes.com/article/5953e84…