South London borough with famous tourist attraction could introduce tourist tax

Lambeth Council could soon be introducing a new tourist tax after a proposal received an overwhelming amount of support.

Lambeth Council is famously known for being home to one of London’s most famous attractions – The London Eye – bringing thousands of tourists to visit it every year.

Lambeth Council has moved a step closer to introducing a new “overnight visitor levy” after councillors voted overwhelmingly in favour of the proposal at a full council meeting on October 15.

The Labour-backed motion, aimed at ensuring tourists contribute more directly to the borough’s services and public spaces, passed with 41 votes in favour, none against, and three abstentions, with no amendments carried.

Home to landmark attractions such as the London Eye, the National Theatre, the Oval Cricket Ground and Brixton’s O2 Academy, the borough draws more than three million visitors each month to the South Bank alone, with almost 200,000 additional people arriving at night each weekend.

With London expected to receive over half of the UK’s projected 43 million overseas visitors in 2025, councillors say pressure on local services has become increasingly difficult to ignore.

The motion argued that while tourism brings enormous economic benefits, contributing to London’s £27 billion-visitor economy and supporting 700,000 jobs across the capital, Lambeth residents are bearing the brunt of the costs associated with increased footfall.

Some of the biggest issues raised during the meeting were concerns towards waste management, environmental enforcement and the upkeep of public spaces.

Councillor Ibrahim Dogus, opening the debate for Labour, said a small tax would allow visitors “to make a small contribution to the borough and communities that host them.”

Councillor Emma Nye described the approach as “proven, responsible and modern”, referring to similar schemes already in place globally.

Manchester and Liverpool currently operate £1–£2 nightly taxes through their Business Improvement Districts, while Edinburgh will launch a five per cent visitor tax in 2026.

The motion received support from both Green and Liberal Democrat parties.

Green councillor Nicole Griffiths expressed her party’s support in principle for a tourist tax, though their suggested amendments did not pass.

Liberal Democrat councillor Matthew Curtis also supported the idea, but said his group wanted stronger commitments to working directly with accommodation providers to explore a dedicated accommodation business improvement district.

Labour councillor David Cameron said the tax could offer “substantial benefits” to residents and businesses alike.

If the tax were to be levied, funds could be invested in street cleaning, community safety, public realm improvements, and maintaining parks and cultural spaces.

Lambeth’s leaders argue that after more than a decade of reduced local government funding, the additional income could help protect vital services while supporting the borough’s night-time economy.

Following the meeting, Lambeth Council will contact Chancellor and the Secretary of State for Levelling Up, Housing and Communities, urging ministers to give the Mayor of London and borough councils the legal power to put the tax in place.

Lambeth Labour also launched a public petition in support of what it calls the “Love Lambeth Levy”, urging residents to help build further support for a London-wide scheme.

The petition reads: “Lambeth is already a world-class destination.

“A tourist tax will help us keep it clean, safe and welcoming – and ensure our communities benefit from the success of our visitor economy.”