Lambeth, known for key London attractions like the London Eye, Brixton’s O2 Academy, and the South Bank, is aiming to introduce one of the city’s first tourist taxes.
As tourism grows, London expects to welcome a record 43 million visitors from other countries in 2025. Tourism brings in more than £27 billion a year for the UK economy and supports about 700,000 jobs.
Lambeth alone is understood to attract more than three million visitors each month, with around 200,000 extra people arriving at the weekends.
A Borough Feeling the Pressure
In a statement sent to City News, Lambeth Council said while the borough “proudly has a thriving arts, sports and cultural sector,” tourism was putting pressure on local services by the raising the demand for — and therefore cost of — the maintenance of public spaces.
The council said a small overnight levy on hotels and short-term lets would be a “fair and progressive way” for mass tourism to contribute to the communities hosting it.
The proposal mirrors systems already used across Europe, as well as visitor levies introduced in Manchester and Liverpool, where councils insist the charge has not deterred tourists.
What the Levy Could Fund
Lambeth Council said revenue from the levy could help:
Strengthen local high street
Support small businesses and night time workers
Improve community safety
Maintain parks and public safety
The council says this supports the borough’s Lambeth Growth Plan, ensuring that economic benefits reach both residents and visitors.
The Legal Barrier
Despite political support, Lambeth cannot yet introduce the levy.
The council says it must first be granted new legal powers from central government. It has urged the Chancellor to act “so London boroughs and the Mayor can introduce a visitor levy jointly”.
Opinions from local business owners we spoke to were mixed.
Some welcomed the idea as a fair contribution from tourists, while others felt the borough should avoid adding extra costs at a time when visitors are already facing high prices.
But Council Leader Claire Holland said the measure would “ensure our visitor economy works for everyone from residents to night-time workers and tourists visiting our wonderful borough”.
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HeadlineLambeth Moves Toward Tourist Tax as Visitor Numbers Surge
Short HeadlineLambeth Moves Toward Tourist Tax as Visitor Numbers Surge
StandfirstThe borough says tourism brings huge benefits — but rising pressure. Is a new levy the answer?
Lambeth, known for key London attractions like the London Eye, Brixton’s O2 Academy, and the South Bank, is aiming to introduce one of the city’s first tourist taxes.
As tourism grows, London expects to welcome a record 43 million visitors from other countries in 2025. Tourism brings in more than £27 billion a year for the UK economy and supports about 700,000 jobs.
Lambeth alone is understood to attract more than three million visitors each month, with around 200,000 extra people arriving at the weekends.
A Borough Feeling the Pressure
In a statement sent to City News, Lambeth Council said while the borough “proudly has a thriving arts, sports and cultural sector,” tourism was putting pressure on local services by the raising the demand for — and therefore cost of — the maintenance of public spaces.
The council said a small overnight levy on hotels and short-term lets would be a “fair and progressive way” for mass tourism to contribute to the communities hosting it.
The proposal mirrors systems already used across Europe, as well as visitor levies introduced in Manchester and Liverpool, where councils insist the charge has not deterred tourists.
What the Levy Could Fund
Lambeth Council said revenue from the levy could help:
Strengthen local high street
Support small businesses and night time workers
Improve community safety
Maintain parks and public safety
The council says this supports the borough’s Lambeth Growth Plan, ensuring that economic benefits reach both residents and visitors.
The Legal Barrier
Despite political support, Lambeth cannot yet introduce the levy.
The council says it must first be granted new legal powers from central government. It has urged the Chancellor to act “so London boroughs and the Mayor can introduce a visitor levy jointly”.
Opinions from local business owners we spoke to were mixed.
Some welcomed the idea as a fair contribution from tourists, while others felt the borough should avoid adding extra costs at a time when visitors are already facing high prices.
But Council Leader Claire Holland said the measure would “ensure our visitor economy works for everyone from residents to night-time workers and tourists visiting our wonderful borough”.
