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London is set to introduce an overnight visitor levy, with Mayor Sadiq Khan confirming that the charge in the capital will be capped at 5 % of accommodation costs.
The announcement follows new government plans giving mayors and local leaders in England the power to introduce an overnight visitor levy. The levy will be charged as a %age of accommodation costs rather than a flat fee, with the government saying this approach will help protect cheaper holidays.
The final rate for London has not yet been decided. Khan has said the capital's levy will not be higher than 5 %, meaning the figure is a maximum rather than a confirmed charge.
The amount visitors pay would depend on the price of their accommodation.
For example, a £200 hotel room could attract an additional £10 if London introduced the full 5 % levy. A five-night stay at the same rate could add £50 to the accommodation cost.
This is only an example because London's final rate, start date and detailed collection rules have not yet been confirmed.
The levy could generate significant revenue for the capital. An analysis by Central London Forward reported by the BBC found that a hypothetical 3 % tourist levy in London could raise more than £350 million.
The government says revenue from visitor levies could be invested in high streets, public transport and events, with the aim of supporting local economic growth and improving the visitor experience.
London would be joining a growing number of UK destinations introducing visitor charges.
Edinburgh introduced its 5 % visitor levy on 24 July 2026, applying to eligible paid overnight accommodation for a maximum of five consecutive nights. The City of Edinburgh Council's visitor levy information confirms that the charge applies to the accommodation cost and is expected to generate funding for services and projects across the city.
Glasgow is also preparing to introduce a 5 % levy, while Aberdeen is expected to charge 7 %. Manchester and Liverpool already have accommodation-related charges through Accommodation Business Improvement Districts.
The plans have received a mixed response from the hospitality industry. Supporters argue that visitors should contribute towards the infrastructure and services they use, while industry groups have warned that additional accommodation costs could affect the competitiveness of UK destinations.
For now, travellers booking a London hotel do not need to pay the new levy. The final rate, start date and collection arrangements still need to be confirmed.
TravelApp will continue to follow changes that could affect the cost of holidays and city breaks across the UK.
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