As the UK government considers the introduction of an overnight visitor levy in London, leaders and senior councillors from boroughs across the capital campaigned to keep 50% of the revenue, writes Myfanwy Fleming-Jones…
In November 2025, London Councils welcomed the government’s announcement that Mayors would receive a new power which would see tourists charged an extra few pounds a night to reside in hotels and Airbnb’s in London, a tax already imposed on tourists in Barcelona, Rome and Paris.
Although tourism brings many economic benefits to London, it can also lead to significant pressures and costs to local services as street cleaning, waste management, licensing and community safety must all be maintained to effectively manage tourists.
Cllr Claire Holland, Chair of London Councils, said: “By ensuring councils retain at least 50 per cent of revenue raised in their area, the levy would provide much-needed funding for local services that support tourism and measures that drive economic growth.
“There would be clear benefits to local residents, businesses, and visitors alike.
“As ministers consider their next steps, we continue to make the case for boroughs to retain a fair share of revenues, while recognising the need to invest on a pan-London basis as well.
“We look forward to working with the government and Mayor of London on the design and implementation of the levy so that we get the best possible result for the capital.”
An analysis commissioned by Central London Forward shows that an overnight visitor levy could raise over £350m per year across London.
London Councils argument ‘Keep the Levy Local’ states that 50 per cent of this is vital for raising much-needed funding to invest in the local services that the tourist economy relies on to support businesses and local growth opportunities.
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The group says ensuring boroughs retain a share of levy revenue is crucial as there is no formal arrangement for joint decision-making between councils and the General London Authority, meaning boroughs are not guaranteed a role in designing the levy or distributing its funding.
London Councils have also stated that all levy revenue raised in London should remain in the capital and campaigned for the remainder of the levy funds to support pan-London services vital to tourism, such as transport and policing. The cross-party group also emphasised that boroughs should not lose government grant funding as a result of retaining levy revenue.
Photo Credits: London Councils
