London politicians push for devolved tourism levy to boost global competitiveness

Senior London politicians and experts are advocating for enhanced fiscal powers, including a tourist levy, to make London more competitive and self-sufficient amid ongoing debates about the city’s devolution settlement and economic future.

Senior London politicians are intensifying calls for the capital to be granted enhanced fiscal powers, including the ability to impose a tourism levy, which they argue would significantly boost London’s economy and, by extension, the wider UK economy. Among the key voices advocating for these changes are Dawn Butler MP, Bassam Mahfouz AM, Hina Bokari AM, and Krupesh Hirani AM, who collectively presented a report titled ‘Trusting London to deliver: our place in the Government’s devolution reforms’ at a recent event in Parliament.

The report urges ministers to amend the English Devolution and Community Empowerment Bill—currently progressing through Parliament—to enable the Mayor of London, Sir Sadiq Khan, to introduce a tourist tax on overnight stays. This taxation power is seen as a “no-brainer” move to provide the capital with fiscal freedoms comparable to other global cities like New York, Paris, and Berlin. Bassam Mahfouz, chair of the Greater London Authority (GLA) Oversight Committee, highlighted that London is “tied to rules that belong to a very different scale of city,” emphasizing the need for greater autonomy and fiscal flexibility. The report also advocates for reforms to council tax and business rates, and opposes joint decision-making structures between the GLA and the 32 London boroughs, aiming to streamline governance.

Research conducted by the committee found that 41% of Londoners support the Mayor’s Office having the authority to levy a tourism tax, which could generate approximately £250 million annually. These funds are proposed to be ring-fenced for reinvestment in London’s infrastructure and public services. Currently, the national government opposes such a tax in London, but similar initiatives have seen success elsewhere; both Manchester and Liverpool introduced tourism-based Business Improvement Districts in 2023 to collect taxes from hotels and serviced apartments, circumventing legal barriers.

The push for a tourism levy is part of a broader coalition of English city mayors, including Sadiq Khan, who are advocating for devolved powers to enable local authorities to raise income from tourism. They argue that these revenues could enhance tourism and cultural infrastructure while fostering regional economic growth and reducing dependence on central government funding. Other European cities have successfully implemented such levies, providing useful models for London.

Dawn Butler MP, a vocal supporter of the proposed reforms and a former London mayoral candidate, described the tourism tax as “low hanging fruit” for the government, suggesting it represents an easy win that could quickly channel much-needed funds into London’s infrastructure. She also stressed the need to strengthen the Mayor’s powers accompanied by proportional scrutiny capabilities for the London Assembly, to ensure democratic accountability in a more powerful mayoral system. Hina Bokhari, Liberal Democrat group leader on the London Assembly, echoed this stance, advocating for the Assembly to have stronger budget scrutiny powers to maintain effective oversight over expanding mayoral authority.

The English Devolution and Community Empowerment Bill, introduced to Parliament in July 2025, is designed to enhance local governance by granting mayors and combined authorities a wider suite of powers, including a General Power of Competence. This allows them to do anything an individual can legally do to foster growth and collaboration. However, the GLA Oversight Committee’s report stresses that London’s devolution settlement remains incomplete without added fiscal freedoms, including the tourism levy and reforms to local taxation.

London Councils has responded positively to the bill’s aims, but advocates for formal structures that enable collaboration and joint decision-making between the Mayor and the boroughs to ensure local voices are integrated effectively into regional governance. This contrasts somewhat with the Oversight Committee’s recommendation to avoid joint decision-making frameworks, highlighting ongoing debates about the best way to balance power and collaboration within London’s complex administrative landscape.

Sir Sadiq Khan himself has emphasised that London’s stature and economic environment are more comparable to global cities such as New York and Singapore, rather than regional UK cities like Manchester or Liverpool. He has expressed openness to exploring a tourist tax, noting that his team is examining international examples including Barcelona, Paris, and Venice to assess the impact and feasibility of such a levy. Khan pointed out that without devolved powers and resources, London risks losing businesses not to other UK cities, but to other global destinations, underscoring the importance of granting London greater control over its own economic tools.

In summary, the current movement to expand London’s fiscal and administrative powers, particularly via a tourism levy, represents a significant moment in the city’s ongoing push for effective devolution. While the national government remains hesitant, momentum among local politicians, experts, and public opinion appears to be growing, framing these reforms as essential for London to remain competitive and prosperous on a global stage.

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Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
8

Notes:
The narrative presents recent developments regarding London’s push for a tourism levy, with references to events and statements from July 2025. Similar discussions have been ongoing since at least March 2025, indicating a consistent and evolving discourse on the topic. The inclusion of updated data and recent events suggests a high freshness score. However, the presence of earlier discussions and reports may indicate some recycled content. Notably, the report titled ‘Trusting London to deliver: our place in the Government’s devolution reforms’ was presented at a recent event in Parliament, aligning with the timeline of the narrative. ([london.gov.uk](https://www.london.gov.uk/who-we-are/what-london-assembly-does/london-assembly-press-releases/londoners-want-assembly-more-bite?utm_source=openai)) Additionally, the article includes a reference map linking specific paragraphs to external sources, enhancing the credibility and timeliness of the information. ([feeds.bbci.co.uk](https://feeds.bbci.co.uk/news/articles/c5ypvw0qln7o?utm_source=openai))

Quotes check

Score:
9

Notes:
The narrative includes direct quotes from key figures such as Bassam Mahfouz, Dawn Butler MP, and Hina Bokhari AM. A search reveals that these quotes are consistent with their public statements made in July 2025, indicating originality and relevance. For instance, Bassam Mahfouz’s emphasis on London’s need for greater autonomy and fiscal flexibility aligns with his statements in the referenced sources. ([london.gov.uk](https://www.london.gov.uk/who-we-are/what-london-assembly-does/london-assembly-press-releases/londoners-want-assembly-more-bite?utm_source=openai)) The consistency of these quotes across reputable sources suggests that they are not recycled or fabricated.

Source reliability

Score:
9

Notes:
The narrative originates from mylondon.news, a local news outlet covering London-specific issues. While it is not as globally recognized as some major news organizations, it is a legitimate source for local news. The inclusion of references to official documents, such as the English Devolution and Community Empowerment Bill, and statements from reputable figures like Dawn Butler MP and Hina Bokhari AM, adds credibility to the report. However, the reliance on a single outlet for the primary narrative may limit the breadth of perspectives presented.

Plausability check

Score:
8

Notes:
The claims regarding London’s push for a tourism levy are plausible and align with ongoing discussions in the UK. Similar initiatives have been proposed in other UK cities, such as Manchester and Liverpool, indicating a broader trend towards considering tourism levies. ([theguardian.com](https://www.theguardian.com/uk-news/2025/jun/03/tourism-tax-england-mayors?utm_source=openai)) The narrative also references a report titled ‘Trusting London to deliver: our place in the Government’s devolution reforms,’ which appears to be a legitimate document presented in Parliament. The inclusion of specific figures, such as the potential £250 million annual revenue from the proposed tourism tax, adds specificity and supports the plausibility of the claims. However, the absence of direct quotes from the referenced report limits the ability to fully verify the accuracy of these figures.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary:
The narrative presents a timely and plausible account of London’s ongoing discussions regarding the implementation of a tourism levy. The inclusion of direct quotes from reputable figures and references to official documents enhances the credibility of the report. While the reliance on a single source and the absence of direct quotes from the referenced report are noted, these factors do not significantly undermine the overall reliability of the information presented.