A proposed holiday tax in London has drawn criticism from a senior Conservative figure, who cautioned it could significantly harm the capital’s tourism sector and broader economy. Sir James Cleverly, a Conservative candidate for the London mayoralty, voiced concerns that the planned levy, supported by Mayor Sadiq Khan, may deter visitors and undermine the city’s vibrancy.

Cleverly emphasized the importance of maintaining London’s appeal as a leading global destination, noting that more than 20 million foreign tourists visited the city last year. These tourists contributed an estimated £40 billion to the local economy, according to his statement. He warned that introducing an overnight stay fee could risk turning London into a “ghost town” by discouraging both domestic and international visitors.

The proposed holiday tax is part of new powers granted to local authorities in England, allowing them to implement charges on overnight stays. Hospitality industry representatives have expressed concern over the potential impact on tourism, with the trade body UKHospitality warning that the fee could increase the cost of family holidays by as much as £100, potentially pricing out hard-working families from affordable staycations.

The issue has also attracted broader political debate. Cleverly criticized what he described as Prime Minister Rishi Sunak’s “anti-London policies,” arguing they have negatively affected the economic prospects of the South of England. Meanwhile, supporters of the tax argue that additional revenue from tourists could help fund local services and infrastructure improvements.

The debate highlights the ongoing tension between efforts to raise local government funding and concerns over maintaining competitiveness in the tourism sector. As London continues to recover from the economic effects of the COVID-19 pandemic, stakeholders are closely watching the potential implications of new taxation measures on visitor numbers and the city’s economic health.