London is expensive enough for tourists
An overnight levy on top of the removal of VAT-free shopping is making London too expensive for tourists, writes Ros Morgan in today’s Notebook
What the West End needs from Labour’s Budget
The West End is one of the UK’s most productive economic centres and an international shop window for Britain.
It generates more than £55bn for the UK economy, supports more than 58,000 businesses and 500,000 jobs and attracts more than 280m visitors each year. The new draft London Plan recognised the West End as an International Centre for commerce, culture and experience folr the first time, reflecting its importance not simply to London, but to the UK’s economy and international competitiveness.
HOLBA’s membership gives us direct insight into the conditions affecting investment, growth and international competitiveness in one of the UK’s most economically important places.
Our four Budget asks share some clear objectives: removing barriers to growth, increasing investment and spending, and generating a greater economic and fiscal return.
First, we need decisive action to get our high streets investing and growing again. That means reforming business rates to reduce the disproportionate burden on businesses operating from physical premises, releasing capacity to invest, employ and grow while broadening the tax base and protecting overall Exchequer revenues.
Second, we need to bring international spending back to Britain.
We are calling for a review on the restoration of VAT-free shopping, which the Centre for Economics and Business Research estimates could generate £11.5bn in additional GDP, support more than 153,000 jobs and deliver a £2.6bn net gain to the Exchequer.
Third, we want the government to back the West End to generate more growth and revenue. That means a sustainable funding settlement for the newly designated International Centre, enabling a proportion of revenues and future growth generated here to be reinvested in the policing, public realm and infrastructure required to support businesses, improve the experiences of residents and visitors and sustain further growth.
Finally, let’s mobilise private capital to invest in our towns and cities. Ministers need to back Business Improvement Districts (BIDs) as a proven mechanism for business-led investment and enable standalone property owner BIDs, allowing more long-term private capital to support growth without equivalent Government expenditure.
The common principle is straightforward: targeted policy intervention can remove barriers, unlock investment and strengthen the conditions for growth. These proposals are designed to support economic activity rather than simply increase public expenditure, with potential benefits for employment, investment, visitor spending and tax revenues across London and the wider UK.
Another tourist tax
Last week, despite warnings about the impact on the hospitality industry, ministers pushed ahead with plans to allow mayors to impose a new ‘overnight visitor levy’ on hotels, holiday lets and bed and breakfasts.
I understand the need for Mayoral Strategic Authorities to raise and retain more revenue, since local government has borne the brunt of austerity over the last 15 years. However, I have serious doubts that this is the right way to do it. The UK is already one of the most expensive destinations in the world for tourists, and London its most expensive city. If ministers insist on pressing ahead, we need to ensure the money is hypothecated and spent where it’s raised. It also needs to go towards things that will genuinely improve the visitor experience, such as crime prevention.
Catch Open House this weekend
HOLBA has partnered with Open House, a brilliant initiative that opens up special buildings and spaces that aren’t normally accessible to the public for a limited time each year. This week and weekend, you can visit properties on our patch such as the Linnean Society of London, the Royal Astronomical Society and parts of Christopher Wren’s St James’s Church in Piccadilly which you can’t usually see.
London’s new jazz spot
I am eagerly awaiting the opening next week of Blue Note, one of the world’s most famous jazz clubs. It is already famous in New York, Tokyo, Milan and elsewhere, but this is the first time it has come to London. It’s in a great spot on St Martin’s Lane in a building which has previously been both a cinema and a gym. Having a brilliant live music venue is going to be a great addition to the area.
What I’m reading
I have just re-read Gutter to Glory, written by Kerry Douglas, an extraordinary woman who slept rough on the streets of Westminster for years. HOLBA arranged for her to speak about her experience in Parliament. Her book is a raw, powerful and deeply personal true story about childhood trauma, the care system, homelessness, addiction, offending, survival and what it really takes to rebuild a life. I highly recommend it.
Ros Morgan is CEO of Heart of London Business Alliance