Reeves Budget to Embrace Tourist Tax for Cities Including London

The UK will allow Mayor of London Sadiq Khan and other local leaders to impose a “tourist tax” on overnight stays in English cities.

The government will announce the policy on Tuesday ahead of Chancellor of the Exchequer Rachel Reeves’ Nov. 26 budget, according to people familiar with the matter. Khan has spent recent weeks seeking to persuade the Treasury to devolve city tax powers, as the government’s English Devolution and Community Empowerment Bill has progressed through Parliament.

The rate at which the levy will be set will be subject to consultation but is expected to be applied at ...