Lambeth Council has launched a campaign for the introduction of a tourist tax, formally known as an 'Overnight Visitor Levy', both within its borough and across the entire capital. The proposal, championed by Lambeth Labour, was formally put forward during a council meeting on October 15.
What is the Proposed Tourist Tax?
The council argues that a tourist tax would be a 'fair and progressive' method for achieving sustainable tourism. The concept involves a small, additional charge applied to the cost of overnight accommodation, including hotels and short-term rental properties. This revenue would be directly reinvested into local services that experience significant pressure from the high volume of visitors.
An online petition detailing the plan states that an 'overnight levy, sometimes called a tourist levy, would be a small charge paid by tourists and visitors on accommodation costs'.
Why is Lambeth Pushing for This Levy?
Lambeth is home to some of London's most iconic and popular attractions. These include the National Theatre, the London Eye, Brixton's O2 Academy, and the Oval Cricket Ground. The tourism footprint is substantial; the London Eye alone draws millions of visitors annually, while the South Bank area welcomes an estimated three million tourists every month.
Council meeting notes acknowledged that while tourism is 'undoubtedly a cause for celebration', it also places 'substantial and growing pressure on key local services' such as waste management. The proposed 'modest discretionary charge' is intended to ensure that the local area and its services 'receive a fair return from the economic strength of our visitor economy'.
Looking to Other Cities and the Future
Lambeth's proposal draws inspiration from other UK cities already testing similar schemes. Manchester and Liverpool are piloting charges of £1 to £2 per night. Furthermore, Edinburgh is set to implement a five per cent levy from July 2026, a move projected to generate around £50 million per year.
The council argues that applying a tourist tax London-wide could 'raise hundreds of millions of pounds each year'. The initiative is also looking at international examples, such as the Balearic Islands, where a significant tourist tax hike has been proposed. There, unions are pressing for a charge of €15 per day during the summer months.
However, the motivation in the Balearics differs. The CCOO union admits their proposal is not primarily about raising environmental funds but is a 'dissuasive' measure to deliberately deter holidaymakers from what they describe as 'saturated' islands like Mallorca, Ibiza, and Menorca.
Lambeth Council's push represents a growing trend among major tourist destinations to find new revenue streams that directly mitigate the impact of millions of annual visitors, ensuring that local communities see a tangible benefit from the tourism they host.
