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Birmingham Post
Birmingham Post
Business
Jonathan Walker

'Hotel tax' could fund Birmingham 2022 Commonwealth Games

Hotels in Birmingham may soon be adding extra charges to room bills to pay for the city hosting the 2022 Commonwealth Games.

Members of the House of Lords are trying to change the law which would allow Birmingham hoteliers to add a £1 levy per room, per night.

If backed by Westminster, it is hoped the change could come into effect immediately with an estimated £15 million to be raised over the next three years.

Jeff Rooker, a former  Birmingham MP and Lord Rooker of Perry Barr, and Lord Hunt of Kings Heath have together proposed an amendment to the Birmingham Commonwealth Games Bill which is currently going through Parliament.

The Government bill includes a series of measures which ministers say are essential to the success of the 2022 Games.

These include restricting which companies can associate themselves with the sporting spectacle, such as those which have contributed financially, clamping down on unauthorised advertising and street trading and a hard line on ticket touts.

An amendment to this bill would allow the Culture Secretary to authorise Birmingham City Council to raise a "hotel occupancy levy" and to use the proceeds to help fund the games.

Birmingham City Council is calling for the levy to be introduced on a temporary basis with the cash ring-fenced for the Commonwealth Games but the authority believes that, if the scheme is successful, the Government could allow the levy to become permanent and used to fund future events.

Leader Coun Ian Ward said: "Similar levies are in place right across Europe already.

"We do still have a challenge on the funding which is why we are keen to explore other possibilities with the Government and the hotel occupancy levy is one of them."

The Birmingham Commonwealth Games Bill is currently being debated in the House of Lords and will move to the House of Commons for more discussions before it becomes law.

It was officially revealed last month that the 2022 Games would cost £778 million with £594 million provided by central government and the remaining £184 million coming from the city council and its partners.

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