The British Hospitality Association has criticised plans by the Greater London Assembly’s plans to introduce a ‘bed tax’ for the capital’s hotel rooms and apartments.

The plans first introduced in January state the “Berlin-style tax of 5% of the room rate per night” would add from £91m to £364m a year to the UK economy, but potentially increase accommodation prices by £3.40.

According to the BHA, those hardest hit would be domestic business travellers and families, who are already paying the highest rates of tax in Europe.

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