London might be getting a new tourist tax - but not in the borough you’d think

Westminster, London, England. View from the top of Nelson's Column in Trafalgar Square down Whitehall towards Big Ben

(Image credit: Scott E Barbour / Getty Images)

published 17 November 2025

It’s not unusual to find a tourist tax in some of Europe's buzzy cities - Barcelona, Amsterdam, Lisbon - even in the UK you’ll find them in the likes of Edinburgh, Manchester, and Liverpool. Now, it might be heading to London.

The tourist tax has been considered before by London Mayor Sadiq Khan back in 2024, as well as the Northwest borough of Brent. Now, it’s up for consideration again, but probably not in the area you’d expect.

Rather than being suggested for the likes of Westminster, Soho, Shoreditch - even Kensington and Chelsea, it’s Lambeth council that is calling for an overnight levy to be brought to the borough. This would cover areas like Clapham, Brixton, Vauxhall, and Streatham, which, whilst not being naturally known for their masses of tourist attractions, are actually home to a couple of big hitters, including the London Eye, Southbank, and National Theatre.

The tax would see visitors charged a small additional cost on short stays like hotels, B&Bs, and even some short-term lets. It is a popular way for councils to raise vital funds for local authorities, with Manchester reportedly raising £2.8m after the first year.

London’s South Bank currently attracts tens of millions of people each year, with that figure surging to 200,000 nighttime visitors every weekend - not even counting the Christmas market goers.

According to Lambeth Labour, ‘The revenue from what Lambeth Labour calls the ‘Love Lambeth Levy’ could be allocated towards public realm improvements, such as street cleaning and general upkeep and maintenance of the borough and promote Lambeth as a leading destination to visit and enjoy.’

Lambeth residents are currently slightly divided over the idea, some believe it could give a much-needed boost to the local economy, while others are unconvinced that it’s necessary - especially before anything similar is implemented in more central boroughs like Westminster.

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Hermione Blandford is the Content Editor for Shortlist’s social media which means you can usually find her scrolling through Instagram and calling it work, or stopping random people in the street and accosting them with a mini mic. She has previously worked in food and drink PR for brands including Johnnie Walker, Tanqueray, Gordon's, The Singleton, Lagavulin and Don Julio which means she is a self confessed expert in spicy margaritas and pints, regularly popping into the pub in the name of research.

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