Proposed Visitor Levy

Rachel Blake Excerpts

Wednesday 25th March 2026 Westminster Hall

[Rachel Blake (Cities of London and Westminster) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Mr Efford. I am incredibly proud to represent the centre of the capital; Ronnie Scott’s, Abbey Road, Tate Britain and all the best museums are right here in the centre of London. Every year, 25 million tourists visit Westminster, spending £1.7 billion to support businesses and residents across London.

This debate has not focused enough on the essential principles of devolution and the role that different organisations play in supporting the tourism industry. We need to hear, again, that nine out of 10 of the most visited tourist destinations in Europe implement a tourist tax. I have listened to the right hon. Member for East Hampshire (Damian Hinds) and the hon. Member for Keighley and Ilkley (Robbie Moore)—although I have to disagree with the hon. Member, because I do think that Brontë country is an international destination, as I am sure many of his constituents will agree—but Hampshire, Hartlepool, Hillingdon and Haworth will not have the same needs as Hyde Park. That is the fundamental principle that we need to focus on today.

I firmly support introducing an overnight visitor levy. It is the right thing to do to enable localities to accurately reflect the particular needs of their neighbourhoods. Taking a local and regional approach means that we have to look carefully at what London might need specifically. Unlike in combined authorities outside London, London borough leaders do not have a formal say in decision making about budgets at the Greater London Authority, so it would be the only major city in the country where local authorities would not have joint decision making over the levy mechanisms. I therefore support the mandation of a 50:50 split, allowing local authorities to keep part of the receipts and enabling boroughs such as Westminster to invest in the vital services that keep the heart of London a world-leading tourist destination. That could include investment in the public realm as well as investment in growth measures—

[Clive Efford (in the Chair)]

Order. There is a Division. I am told to expect six votes, so I must suspend the sitting for about an hour and 15 minutes. If there are fewer, we can come back more quickly. Please come back as soon as the votes are finished.

--- Later in debate ---

On resuming—

[Rachel Blake]

As I was saying, what is right for Hampshire, Hartlepool, Hillingdon and Howarth is not necessarily right for Hyde Park. That is why devolving the power to implement this overnight visitor levy is the right way to go.

I ask the Minister to consider the arguments in favour of mandating a 50:50 split in London; unlike combined authorities outside London, we are the only major city in the country where local authorities do not have a joint decision-making mechanism. In 2023-24, Westminster city council spent £31 million on street cleaning—more than four times the amount per head of the average London borough—demonstrating the significance that inner-London boroughs place on keeping our streets clean and ready for tourists. Other visitor and commuter services total £18.3 million a year, so allowing local authorities to keep half of these receipts would be right for all the London boroughs that provide tourist attractions for our world-leading tourism destination. It is already standard practice for revenues to be ringfenced locally, including in Paris, New York and Amsterdam.

I also ask the Minister to think through the implications for the registration system introduced for short-term lets. In some parts of Westminster, up to 30% of homes are now used as short-term lets. Doubling the density of short-term lets is associated with an 8% growth in per-bedroom rental prices—or £4,500 per year. Short-term lets should be paying this levy, and the levy should be implemented in a way that makes sure we can gather data on who is letting out their home on a short-term basis. That should be factored into the design of any scheme. I am grateful for the chance to discuss these topics in this setting.