Southwark Council has thrown its weight behind a proposal for a London-wide tourist tax, following a motion passed at the Council Assembly meeting on 9 July 2025.
The motion notes that revenue generated from a tourist tax could provide additional funds for maintaining public spaces, public transport, heritage conservation, waste management, sustainability projects, and promoting Southwark. This would also support the borough's long-term goals.
The motion, initially put forward by Councillor Graham Neale, was amended to remove a call for a pilot voluntary tourist contribution scheme in Southwark. Instead, the council has resolved to support a broader, London-wide tourism levy.
The move comes as cities across the UK, including Manchester, York, Liverpool, and Edinburgh, have already implemented or are in the process of implementing similar taxes. Edinburgh anticipates generating as much as £50 million per year through its tourist tax.
The council will now utilise its relationships with Business Improvement Districts to understand the potential impact of a tourism levy on businesses, particularly those in the hospitality sector. The council aims to support the call to implement a London-wide tourism levy through accommodation costs.
According to the Public reports pack, a London-wide tourist tax could potentially generate hundreds of millions of pounds in revenue for the capital.