Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make it her policy to hypothecate revenue raised from a Visitor Levy in London to support the visitor economy in London.

The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth including through support for the local visitor economy, if they so choose.

We have published a consultation running until 18 February 2026, so that the public, businesses, and local government can shape the design of the power to introduce a levy that will be devolved to local leaders.

The precise design and scope of the power for Mayors to introduce a visitor levy is still under development and the Government welcomes engagement from the hospitality sector in developing this power through the consultation process.