'Why councils need tourism tax revenue by default'

"Local authorities which oversee popular tourist destinations have to provide a huge amount of additional services in order to meet the expectations, rightfully, of tourists. Services affected by tourism, including waste management, parks and licensing, are estimated to cost London more than 1.5bn every year."

"Claire Holland, chair of London Councils, said local authorities that bear the costs of tourism must also reap the benefits. Pointing out that nobody knows who will be the next mayor of London, Holland said 50% of the levy must be retained by boroughs by default."

"The visitor levy will ensure hugely popular cities like London benefit even more from tourism, giving mayors more money to put into local priorities."

London Councils, representing all 32 boroughs, launched the 'Keep the Levy Local' campaign demanding that local authorities receive half of revenue from an incoming tourist tax. Chair Claire Holland argues that boroughs bearing tourism costs—including waste management, parks, and licensing—deserve proportional financial benefits. Tourism-related services cost London boroughs over 1.5bn annually. Holland emphasizes the 50% retention must be guaranteed by default, regardless of future mayoral administrations. The Mayor's office stated the levy, potentially raising 352m yearly, will be developed to maximize benefits for London. The Ministry for Housing, Communities and Local Government supports the visitor levy as a means for cities to benefit more from tourism revenue.

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