Greenwich Council would back a tourist tax to fund local services

Greenwich Council says it would support a charge on hotel and Airbnb stays to help fund services in the borough.

Councillors in two other London boroughs, Brent and Southwark, have recently passed motions backing the idea. Brent contains Wembley Stadium, the area around which has been redeveloped in recent years with a number of major hotel chains on its doorstep.

Hotel construction was encouraged in Greenwich during the run-up to the Olympics in 2012, while a number of flats on Greenwich Peninsula and elsewhere have been snapped up by investors for short-term lets through Airbnb and other platforms.

Tourism taxes – often simply referred to as a “city tax” – are levied on hotel and serviced apartment bills in other European countries, but local and regional authorities in England do not have the power to do this.

Brandenburg Gate lit up with flowers projected on it — Berlin – seen during the autumn Festival of Lights – now charges visitors 7.5 per cent on their accommodation bills… Image: The Greenwich Wire

Sign reading Greenwich Promenade, red phone box and red post box — …the tax includes the northwest suburb of Tegel, in Greenwich’s twin borough of Reinickendorf. Image: The Greenwich Wire

Rates vary widely. Visitors to Berlin – home of Reinickendorf and Charlottenburg, the twin boroughs of Greenwich and Lewisham respectively – are charged 7.5 per cent on overnight stays, while in Vienna the charge is about 2.5 per cent.

Amsterdam’s city authority recently upped its charge to 12.5 per cent, the highest in the EU, and in Hamburg the cost is up to €5 per night, depending on the cost of the stay.

The Scottish and Welsh governments recently allowed their councils to impose taxes, with a 5 per cent levy coming to Edinburgh next summer, and to Glasgow from 2027.

London mayor Sadiq Khan has pushed the Westminster government to allow English authorities to do the same. Brent Council leader Muhammed Butt said after his councillors backed the idea: ““Our job is to ensure local people share in the success of our big venues and hoteliers. At a time when local government budgets are extremely tight, a visitor levy is a fair and practical way to strike that balance.

“It would help us invest in keeping public spaces clean, green and enjoyable for residents long after the crowds leave.”

Cutty Sark — Tourism brings in £1.8 billion to the borough’s economy each year, the council says. Image: The Greenwich Wire

Asked whether Greenwich would support the idea, a council spokesperson told The Greenwich Wire: “Greenwich attracts around 19 million visitors each year, with tourism bringing in £1.87 billion to our local economy and supporting over 17,000 jobs. We support the idea of a tourist levy, as it could help us reinvest in our local businesses and infrastructure. Cities like Manchester and Liverpool have already shown how well these schemes can work, raising millions for their communities.

“Currently only central government has the power to introduce a levy. Neither the Mayor of London nor individual boroughs can bring one in on their own. While we’re exploring the options available to us locally, we’re aware of Brent’s campaign and would welcome the additional capacity to raise vital funding for our local tourism industry.”

Liberal Democrats in Southwark have estimated that a tourism tax there could raise £2 million each year. Councillors in the Labour-run borough backed a motion supporting a London-wide levy at a meeting last week.

Piccadilly Gardens with a Metrolink tram — A £1/night levy is charged by accommodation providers in Manchester city centre. Image: The Greenwich Wire

Visitor levies exist in Manchester and Liverpool, but via a legal workaround using business improvement districts, which can charge a levy on their members which pays for additional local services such as street cleaning. They are common in other parts of the capital – in much of central London as well as areas such as Sidcup and Bexleyheath – but are not used in Greenwich.

In Manchester city centre and part of Salford, hotels and serviced accommodation providers set up an “accommodation business improvement district” to levy a £1 per room, per night charge which is passed onto their customers. That charge raised £2.8 million in its first year, which has been spent on street cleaning and marketing campaigns.

Liverpool followed suit last month by introducing a £2 charge, with the cash going into promoting the city and attracting major events.

Updated at 10.30am on Monday to include Greenwich’s twin borough and again at 12noon to clarify that Southwark councillors backed a London-wide levy.

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