Liberal Democrats demand local communities see benefit of Tourist Tax  

Southwark Liberal Democrats have formally responded to the Government’s consultation on the new “overnight visitor levy” - sometimes known as a tourist tax – to demand that at least two thirds of the funds raised are kept by the council. 

The Government announced earlier in November that it would introduce the levy, following a Lib Dem led campaign in Southwark and across London. Southwark Liberal Democrats have fought for a local tourist tax for several years in their alternative budgets, which was repeatedly struck down by Labour. Eventually a motion was passed in council assembly in summer of this year, which was amended by Labour to pass responsibility for it to the Mayor of London.  

The Government’s announcement – which is currently open to a wide ranging consultation – will give Mayors across the country powers to collect a tourist tax. The exact way it will work is still to be decided, but it would be a small charge raised from overnight stays in hotels, hostels, and AirBnB style accommodation.  

Estimates for how much it could raise vary, but some reports have suggested that it could raise anywhere between £90 million and £240 million across the capital. Southwark Liberal Democrats had previously estimated that the levy could raise around £3 million. 

The Liberal Democrats have argued that local councils should see the vast majority – two thirds – of funds raised in their areas returned to them to re-invest into local communities.   

Commenting, Southwark Liberal Democrat Group Leader Cllr Victor Chamberlain said:  

“It’s fantastic to see that our campaign for a tourist tax has finally been realised. We know that this works in many cities across the world, and even elsewhere in the country.  

However, it is vital that the money raised here doesn’t just end up being hoovered up by the Mayor of London. We’re fighting hard for local communities who experience high volumes of tourist activity actually see more investment to keep their areas clean and safe.”