William Eichler 05 February 2026

London Councils urges Government to keep visitor levy revenue local

London Councils urges Government to keep visitor levy revenue local image
© FilmRAW / Shutterstock.com.

London Councils is calling on the Government to ensure boroughs retain at least 50% of revenue raised in their area from any future overnight visitor levy.

The cross-party body says councils shoulder many day-to-day costs linked to tourism, including street cleansing, licensing, community safety and support for local businesses and cultural venues.

Retaining a guaranteed share of levy income would allow boroughs to reinvest directly in services and public spaces visitors rely on, while helping manage tourism’s impact on local communities.

Under Government proposals currently out for consultation, Mayoral Strategic Authorities could introduce visitor levies. London Councils supports the devolution of these powers but wants a national framework that ensures a default minimum 50% local retention rate.

Remaining funds could be used jointly by the Mayor and boroughs to support pan-London tourism and growth, aligned with the capital’s wider economic strategy.

Cllr 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.’

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