The problem with allowing stuff like this is that it creates an arms race: If one company can reduce their room rate 5% and shift it to a hidden "charge" then all their competitors MUST do the same to remain competitive. The net result is that nobody is making more than they were before, but customers feel mislead.

So while there a prevailing "regulation is bad" attitude about stuff like this, it really does benefit both the customer AND business if all pricing is listed equivalently up-front. Which is to say: I hope the UK bans this too, and room-rates are again flat (with or without VAT).