Councillors of the South London borough of Lambeth are calling for a tourist tax to be introduced. While local authorities are currently not allowed to introduce a tourist tax in England, the English Devolution and Community Empowerment Bill, going through Parliament at the time of writing, could change this and make a tourist tax in London a reality.
Tourist taxes are a well-known phenomenon across the world. While all destinations have their own way of dealing with the matter, the tourism levy is generally seen as a small way for overnight visitors to contribute to the local welfare.
While cities such as New York and Venice have introduced the levy a long time ago, so far, London has not. The reason for this is the fact that English law prevents local authorities from introducing such a tax. While authorities have been discussing the matter for years, councillors of the South London borough of Lambeth might now have accelerated the possibility of introducing such a levy.
EXC: British holidaymakers face paying a nightly levy on hotel stays and Airbnb-style rentals under plans expected to be announced by Rachel Reeves
— Max Kendix (@MaxKendix) November 16, 2025
The chancellor is set to give mayors sweeping powers to raise taxes by charging tourists on the cost of an overnight stay
A city-wide tourist levy in the making?
It is Lambeth Labour, which has a 63-seat council majority in the borough, that put forward a motion to give English local authorities the possibility to raise a tourist tax through the so-called English Devolution and Community Empowerment Bill. Lambeth borough is home to popular tourist attractions such as the London Eye and the National Theatre, and attracts three million visitors per month.
“We’re incredibly proud of this, and we want to do everything we can as a council to expand and strengthen our borough as a leading destination to visit and live in. The revenue from what Lambeth Labour calls the ‘Love Lambeth Levy’ could be allocated towards public realm improvements, such as street cleaning and general upkeep and maintenance of the borough and promote Lambeth as a leading destination to visit and enjoy”, Lambeth Labour stated.
🚨Tonight: Lambeth Labour backed plans for an Overnight Visitor Levy
— Lambeth Labour (@LambethLabour) October 15, 2025
Lambeth’s world-class attractions draw millions each year, and a small levy, like those across Europe, could be reinvested in our streets, spaces & communities.
We stand ready to work with the @MayorofLondon pic.twitter.com/GlS7SyzhIB
If the English Devolution and Community Empowerment Bill were to be accepted, every London borough could decide to introduce the tourist levy. If so, according to Lambeth Labour, hundreds of millions of pounds could be raised each year through small individual contributions.
While some are afraid the levy could deter people from visiting, many are in favour of the bill if the funds would be used locally and if the tax would be designed in collaboration with local stakeholders. London mayor Sir Sadiq Khan previously spoke out in favour of a possible tourist levy.
Would you back a tourist levy in Lambeth?
— Lambeth Labour (@LambethLabour) October 22, 2025
Lambeth’s world-class attractions draw millions each year, and a small levy, like those across Europe and the UK, could be reinvested in our streets, spaces & communities.
Get involved and back our petition👇https://t.co/r84zycNid6 pic.twitter.com/1etiym8Jox
“We don’t comment on speculation, but the Mayor has been clear that a modest tourist levy, similar to other international cities, would boost our economy, deliver growth and help cement London’s reputation as a global tourism and business destination”, a spokesperson for the Mayor of London said about the English Devolution and Community Empowerment Bill.
While Chancellor Rachel Reeves was previously not in favour of a tourist tax, she would reportedly have be persuaded about its advantages. Reeves is expected to present her Budget on November 26, of which the tourist levy could be a part, as well as a new gambling tax, a so-called mansion tax, and limits on pension salary sacrifice schemes.
