The government is currently consulting on proposals which would allow the Mayor of London to introduce local overnight visitor levies and councils are arguing they should keep 50% of money raised in their boroughs

London Councils is calling for the government to ensure that boroughs are able to retain at least 50% of funds raised in their area by a future overnight visitor levy in order to fund local services that support tourism and invest in measures to support growth in the capital.

The government is currently consulting on proposals which would allow city mayors in England to introduce local overnight visitor levies, devolving new fiscal powers to London and other regions.

As part of the national framework for the overnight visitor levy, London Councils is proposing that – by default – local authorities are able to retain at least 50% of revenues collected in their area.

The collective of London boroughs say this would ensure councils “receive a share of funding that reflects the additional resource required to support the tourist economy in their area and manage its impact on the local community through extra investment in services such as street cleansing, licensing, local business support and community safety”.

The group added: “It would provide assurance to hotels, businesses and the hospitality industry that the introduction of an overnight visitor levy would directly support and benefit them, knowing that a portion of the money raised would be invested back into the specific areas they operate in to fund services they rely on and support local economic growth.

“A minimum revenue share for local authorities would also act as a pro-growth incentive for councils to support the growth of the tourist economy in their area.”

Claire Holland, chair of London Councils, said: “It is vital that London boroughs retain a fair portion of funds raised by an overnight visitor levy to ensure we are adequately equipped to invest in local services which both support the tourist economy and mitigate the impact of tourism in our local areas.

“Boroughs shoulder many of the day-to-day costs associated with tourism – from maintaining streets and transports hubs, to supporting cultural venues and managing community safety pressures – helping to keep London attractive, clean, and safe.

“By allowing boroughs to retain 50% of the revenues raised in their area to reinvest directly in the local services and public spaces that visitors depend on, we will be able to support the growth of tourism in our city and provide confidence to businesses that this will benefit them.

“We look forward to working with the government and the Mayor on the design and implementation of the levy to ensure this is a success for Londoners and our tourist industry.”

No news is bad news 

Independent news outlets like ours – reporting for the community without rich backers – are under threat of closure, turning British towns into news deserts. 

The audiences they serve know less, understand less, and can do less. 

If our coverage has helped you understand our community a little bit better, please consider supporting us with a monthly, yearly or one-off donation. 

Choose the news. Don’t lose the news.

Monthly direct debit 

Annual direct debit

£5 per month supporters get a digital copy of each month’s paper before anyone else, £10 per month supporters get a digital copy of each month’s paper before anyone else and a print copy posted to them each month.  £50 annual supporters get a digital copy of each month's paper before anyone else.

More information on supporting us monthly or annually 

More Information about donations