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'Why councils need tourism tax revenue by default'

Kumail JafferLocal Democracy Reporting Service (LDRS)
News imageLondon Councils A photo of Claire Holland holding a brightly coloured sign saying 'Keep The Levy Local. A Fair Share for Boroughs'. London Councils
Councillor Claire Holland says councils that bear the cost of tourism must reap the benefits

London boroughs must be given half of all revenue from the incoming tourist tax raised in their areas, the mayor of London has been told.

Claire Holland, chair of London Councils, which represents all 32 boroughs and recently launched the 'Keep the Levy Local' campaign, said local authorities that bear the costs of tourism must also reap the benefits.

Under the English Devolution and Community Empowerment Bill, which is going through Parliament, local leaders will be able to impose a tourist levy on overnight visitors.

A spokesperson for Sir Sadiq Khan said the levy, which could raise up to £352m a year, would be developed "to ensure it delivers the maximum benefits for London".

'Tourism costs London £1.5bn'

Labour councillor Claire Holland told the Local Democracy Reporting Service (LDRS) that local authorities which oversee popular tourist destinations "have to provide a huge amount of additional services in order to meet the expectations, rightfully, of tourists".

Services affected by tourism, including waste management, parks and licensing, are estimated to cost London more than £1.5bn every year, according to London Councils.

Pointing out that nobody knows who will be the next mayor of London, Holland said 50% of the levy must be retained by boroughs "by default".

It is unclear whether Sir Sadiq will run for Labour for a fourth term in the 2028 London mayoral elections, but earlier this year Reform UK announced that Laila Cunningham, a Westminster City Councillor, will be their candidate.

A spokesperson for Sir Sadiq told the LDRS he "welcomes" the new powers London will have to charge a tourist levy.

City Hall would outline plans for how the levy would be developed "to ensure it delivers the maximum benefits for London", they said.

A spokesperson for the Ministry for Housing, Communities and Local Government said: "The visitor levy will ensure hugely popular cities like London benefit even more from tourism, giving mayors more money to put into local priorities."

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