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Standing Up for Westminster: defending our hospitality sector from Labour’s Overnight Levy

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Tuesday, 17 February, 2026
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London hospitality venue (AI generated)

Westminster Conservatives are standing up for our city’s world-class hospitality and hotel sectors in response to the Government’s consultation on a proposed Overnight Levy.

Our hospitality sector is a cornerstone of Westminster’s economy. Nearly 3,000 businesses generate £16 billion a year and employ over 220,000 people. But it is already under intense pressure from the Labour Government’s tax hikes, higher energy bills, and tougher visa rules.

We believe, if there is to be any Overnight Levy, it must be fair, transparent, and locally focused. It cannot become just another Labour tax raid on Westminster jobs and local businesses.

We support London Councils’ call for at least 50% of funds raised to stay local, but given Westminster’s unique pressures and the £75–90 million funding cut caused by Labour’s “Fairer Funding Review”, Westminster should be allowed to retain 100% of the revenue generated here.

That money should go directly back into Westminster: keeping our city safe, supporting street cleaning and investing in local businesses.

We’re also calling on the Labour Government to get serious about illegal and unregulated short-term lets. With over 16,000 across Westminster, they’re pushing up rents and driving out long-term residents. We need a proper registration scheme before any levy reform can take place. The Conservatives introduced plans for a mandatory registration scheme, but Labour has dragged its feet on implementation and left Westminster residents to suffer the consequences.

Westminster Conservatives are standing up for local jobs, fair funding and a thriving city. Any visitor levy must work for Westminster,  not against it.

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Read our response to the Official Consultation

Cllr Paul Swaddle, leader of Westminster Council's Conservative Group, has written to the Secretary of State Rt Hon Steven Reed OBE MP to outline our concerns in detail. Read his letter here.

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