Westminster City Council has mooted an “overnight levy” for hotels and short-term lets.
Adam Hug, leader of Westminster Council, said: “We are exploring with business partners what an overnight stay levy could look like in practice. When you consider the impact of events like the King’s Coronation which drew millions to Westminster, this has to be seriously considered.
“At one point, a block of apartments in our city had almost as many rooms available for short-term letting as the Ritz has hotel rooms.”
He added that the growth of Airbnb had created “an uneven playing field” with hospitality groups, with short-term lets not subject to corporation tax or business rates.