The government’s decision to allow London to introduce an overnight accommodation levy has been welcomed by borough leaders, who say the move could

play a crucial role in supporting services in areas under intense visitor pressure.

Responding to the government's announcement on the introduction of overnight accommodation levies, Cllr Claire Holland, Chair of London Councils, said: 

“We welcome the news that London will be able to introduce an overnight accommodation levy – this has been a long-standing ask from boroughs. 

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

“It is vital that a fair portion of the revenue raised from any levy is retained locally by boroughs, so those parts of the capital experiencing high volumes of tourism have the resources they need to invest back into their area in order to manage pressure on services and support growth, with the remaining funds invested across the capital to support pan-London services and local growth opportunities.”

Calls for a tourism levy in London first gained formal backing in 2017, when the London Finance Commission urged the government to explore how such a system could operate in partnership with the Greater London Authority and London Councils.

The overnight levy is one element of a wider package of fiscal devolution proposals from London Councils. Other measures include full retention of business rates growth, devolving Vehicle Excise Duty and the new Growth and Skills Levy, and allocating a share of national taxes such as income tax and VAT to the capital. Boroughs argue that these reforms would provide stronger incentives to drive local economic growth. Photo by Edward, Wikimedia commons.