Leaders and senior councillors from boroughs across the capital have gathered outside Parliament to urge the government to ‘Keep the Levy Local’.
The government is considering next steps for the introduction of overnight visitor levies, including to London.
London Councils is calling for local authorities to retain at least 50% of levy revenue collected in their area as a default part of the national framework establishing visitor levies.
The cross-party group argues this is vital for raising much-needed funding to invest in the local services that the tourist economy relies on and to support businesses and local growth opportunities.
Although tourism brings many economic benefits to London, it can also lead to significant pressures and costs to local services. London Councils argues that levy revenue must boost resources for these services – including street cleaning, waste management, parks and public realm maintenance, licensing, local business support, and community safety.
Boroughs retaining a fair share of revenue in order to invest in these services would also give confidence to local businesses that they will see benefits from the introduction of a levy.
London Councils proposes that the remaining funds are spent on a pan-London basis to support growth and other services that are critical to the tourist economy, with decisions about how these funds are spent made jointly by the Mayor of London and boroughs. London Councils and the GLA jointly developed and launched the London Growth Plan last year, setting out a collective blueprint to drive inclusive economic growth across the capital.
Ensuring the national framework guarantees that a portion of levy revenue is retained by boroughs is particularly important as – unlike in other parts of the country – there are no formal arrangements for joint decision-making between councils and the Greater London Authority as the strategic authority, so boroughs would not be guaranteed a role in the design of the levy or the distribution of funding.
Cllr Claire Holland, Chair of London Councils, said:
“Boroughs are determined to ensure that an overnight visitor levy is a success for Londoners, our businesses, and our tourist industry.
“Guaranteeing a fair share of funding to local authorities is vital to achieving this. By ensuring councils retain at least 50% of revenue raised in their area, the levy would provide much-needed funding for local services that support tourism and measures that drive economic growth. There would be clear benefits to local residents, businesses, and visitors alike.
“As ministers consider their next steps, we continue to make the case for boroughs to retain a fair share of revenues, while recognising the need to invest on a pan-London basis as well. We look forward to working with the government and Mayor of London on the design and implementation of the levy so that we get the best possible result for the capital.”
London Councils additional priorities include:
All levy revenue raised in London should stay in the capital.
With boroughs retaining at least 50% of levy revenue, the remaining funds could then be used in partnership between the Mayor of London and boroughs to support pan-London services critical to the tourist economy (for example, transport and policing).
Boroughs should not lose out on grant funding from the government as a result of the levy revenue they retain.
