London boroughs want to keep half of tourist tax

London Councils want their boroughs to keep at least 50% of tourist tax

The body representing London's 32 boroughs and the City of London Corporation has said local authorities should keep at least half the funds raised in their area from any future overnight visitor levy.

The government is refining proposals to allow directly elected mayors to introduce the fee, also known as a tourist tax.

It would be intended to support growth in the capital and would cover some extra expenses borne by popular visitor spots.

Chair of London's Councils, Claire Holland, said it was "vital" boroughs retain a fair portion of funds raised by an overnight visitor levy.

A spokesperson from the Ministry of Local Government said: "Tourists travel from near and far to visit London.

"We're giving the city powers to harness this through the visitor levy, and to invest in economic growth, including the visitor economy.

"We're still consulting on what the levy will look like and will set out next steps in due course."

The charge could pay for the extra services necessary for tourist areas such as street cleaning, licensing, local business support and community safety.

A previous report said the levy could raise more than £350 million a year for the city.

London Councils said boroughs would want to work closely with London mayor Sir Sadiq Khan to decide how the remaining funds were spent and that they should ensure all parts of the city are supported.

Areas with lower levels of visitor accommodation still experience high footfall due to significant attractions, therefore still need to grow their tourist economy. the body added.

London Councils "welcomed" the government's proposal that any overnight visitor levy would apply to all forms of commercially let short-term accommodation.

Sir Sadiq Khan said the power to introduce the tourist tax was "good news"

A spokesperson for Sir Sadiq said the mayor would outline plans in due course for developing the levy in London to ensure it delivered the maximum benefits for the capital.

Holland added that allowing boroughs to retain half of the revenues raised in their specific area would mean they could reinvest in local services and public spaces and support the growth of tourism in the capital.

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