The south London borough of Lambeth is making moves to become the first area in the capital to introduce a 'tourist tax', an overnight levy charged to visitors staying in hotels and short-term lets.
What is the proposed 'Love Lambeth Levy'?
Lambeth Council, led by Lambeth Labour, is championing the new charge which would see visitors pay a small fee on their accommodation costs. The initiative, dubbed the 'Love Lambeth Levy', aims to raise vital funds for the local authority.
This follows similar schemes already adopted in other major UK cities, including Manchester, Edinburgh, and Liverpool. It was reported that Manchester’s version of the tax raised an impressive £2.8 million in its first year alone.
Why Lambeth? The Case For and Against
While Lambeth encompasses neighbourhoods like Brixton, Clapham, and Streatham, it is also a major tourist destination. The borough is home to world-famous attractions on the South Bank, including the London Eye, the National Theatre, and the Southbank Centre.
This area attracts tens of millions of people annually, with approximately 200,000 nighttime visitors every weekend. In a petition, Lambeth Labour stated the revenue would be used for public realm improvements, such as street cleaning and general upkeep, to strengthen the borough as a leading destination.
However, the proposal has been met with concern from some local businesses. A shop owner in Brixton Village market told Metro that the tax is a 'terrible idea', citing existing issues with footfall and the current economic climate. They argued it would create a disincentive for people to visit and stay in the area.
Other business owners, like Andrew Murray-Watson, founder of Guzzl in Brixton Village, are not wholly opposed but emphasise that the tax must be properly managed and reinvested back into the community to benefit both residents and tourists.
The Wider London Context
The debate in Lambeth is part of a larger conversation happening across London. The Mayor of London, Sadiq Khan, considered a tourist levy back in 2024, and the northwest London borough of Brent has also explored the idea.
If approved, Lambeth's proposal could pave the way for a broader, London-wide overnight levy, fundamentally changing how the city capitalises on its immense tourism industry to fund local services and infrastructure.
