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Monday, Apr 14, 2025

Growing Support for a Tourist Tax in London to Boost Arts and Culture

Growing Support for a Tourist Tax in London to Boost Arts and Culture

A leading think tank advocates for the implementation of a tourist tax to enhance funding for London’s creative industries amid declining public expenditure.
On Thursday, the push for the Government to permit an overnight tourist tax in London intensified, following a report by the Centre for London.

The report highlights a critical decline in local authority spending on arts and culture in the UK, which fell by 50 per cent per head from 2010 to 2021. The think tank argues that a tourist tax could provide essential funding to revitalise the capital’s arts and cultural sector.

The Centre for London is advocating for the restoration of arts funding to 2010 levels in real terms, alongside the introduction of a national Arts Pass for individuals under the age of 25. Additionally, they propose allowing the Greater London Authority (GLA) to consider the imposition of a tourist tax aimed at generating funds for investment in cultural initiatives.

Support for the tax from London Mayor Sir Sadiq Khan was expressed during last month’s Mayor’s Question Time, where he noted that tourists in various European cities are accustomed to small additional charges integrated into hotel bills, as seen in locations such as Paris and Berlin.

In reaction to these discussions, a Government spokesperson affirmed that there are no plans to introduce a tourism tax in England at present.

They noted that towns and cities have the option to implement a levy on overnight stays through the Accommodation Business Improvement District model.

The report titled 'Arts for All' was unveiled during a panel discussion at the Barbican arts centre.

Shonagh Manson, GLA’s assistant director for culture and creative industries, stated that the notion of a tourist tax has gained traction and recognition as an important topic that has been researched and discussed for several years within London.

Manson explained that the proposed tax would involve visitors paying a nominal additional amount on their hotel bills to create a fund for reinvestment in the arts.

However, she also clarified that the establishment of such a tax would necessitate national legislation in England, indicating that the GLA does not possess the authority to implement it independently.

Manson emphasized the need for joint efforts to advocate for legislative change regarding the tax as part of broader cultural devolution.

The mayor reiterated his commitment to ensuring that any tax revenue would be utilized to attract more tourists to London.

Rob Anderson, the research director at the Centre for London, highlighted the integral role of arts and culture in the identity of London and pointed out that barriers exist preventing broad segments of the population from accessing the city’s rich cultural offerings.

The report underscores that reductions in funding have complicated efforts by arts institutions to provide affordable access to cultural experiences, underlining the necessity for re-investment to ensure London’s ongoing success as a cultural hub.

The Department for Culture, Media and Sport has been approached for a statement regarding the findings of the Centre for London’s report.
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