London’s hospitality sector is set for a seasonal boost as Mayor Sadiq Khan announces the return of the “Summer Streets” fund, backed by a fresh £400,000 investment aimed at revitalising
outdoor dining and the capital’s nightlife economy.
The initiative, first introduced last year, will provide financial support to borough councils to help restaurants, bars, cafés and nightlife venues expand their outdoor offerings and extend opening hours during what City Hall hopes will be a landmark summer. With the men’s football World Cup expected to draw crowds into venues across the city, officials anticipate a surge in demand for social spaces.
Under the scheme, councils can apply for grants of up to £100,000 to deliver large-scale pedestrianisation projects, transforming streets into vibrant open-air dining destinations. Smaller grants of up to £10,000 will also be available for “pocket alfresco” projects, enabling independent cafés, pubs, live music venues and LGBTQIA+ spaces to increase capacity and attract more visitors.
The programme builds on last year’s pilot, which saw areas in Lambeth, Hackney, Waltham Forest and Westminster temporarily reimagined as outdoor hospitality hubs. Locations such as St Martin’s Lane in the West End were turned into bustling pedestrian-friendly zones, drawing increased footfall and hosting a variety of community-led events.
City Hall says the renewed funding is part of a broader effort to support an industry still recovering from years of economic strain. The mayor is also advancing proposals to reform London’s licensing system, following the government’s decision to grant him greater strategic powers.
Plans under consultation include the introduction of a London-wide Strategic Licensing Policy designed to streamline regulations across boroughs and create a more consistent framework for businesses. Earlier recommendations from the independent Nightlife Taskforce have also called for licensing improvements to help protect and grow the capital’s after-dark economy.
With the Summer Streets fund returning, the mayor has signalled his ambition to make this year the biggest ever for al fresco dining in London—bringing together communities, businesses and visitors in the city’s streets once again.
The Mayor of London, Sadiq Khan, said: “It was fantastic to see Londoners and visitors enjoying al fresco dining across our capital last year, so I’m delighted to announce the return of my Summer Streets fund. I want our wonderful cafes, bars and restaurants to be able to expand outdoor dining and opening hours throughout the summer, providing a great experience for all and a real boost to business, especially with the World Cup set to bring people together. I want this summer to be the biggest ever summer for al fresco dining in our capital’s history and I’ll continue to support our vital hospitality and nightlife industries, as we build a better London for everyone.”
Kate Nicholls, Chair of UKHospitality, said: "With a huge summer of sport ahead of us, it's great that the Mayor is bringing back his Summer Street Fund to support London's hospitality businesses.
"We saw the success of the scheme last year, helping to drive footfall and boost trade for our local pubs, bars, cafes and restaurants. I encourage boroughs to move quickly to take advantage of this fund to once again make Summer Streets a success."
Michael Kill, CEO, Night Time Industries Association, said: “The Night Time Industries Association strongly welcomes the Mayor of London’s Summer Streets campaign and the dedicated fund supporting its delivery. At a time when hospitality and nightlife businesses continue to face significant economic pressures, targeted investment like this is essential.
“This initiative not only helps businesses maximise the vital summer trading period, but also reinforces London’s position as a world-leading cultural and night-time destination—supporting an industry that underpins jobs, tourism, and community life across the capital. We look forward to working with the Mayor and boroughs to ensure this funding delivers lasting impact and becomes the foundation for long-term growth and recovery.”
Georgina Wald, Corporate Communications Manager at Fuller, Smith & Turner PLC, said: “It’s good to see the Mayor taking steps to make life easier for pubs and the wider hospitality sector. The challenges facing hospitality at the moment are well documented and we welcome measures that make it easier to make the most of the opportunities that present themselves.” Photo by Raph_PH, Wikimedia commons.