The Leader of Havering Council is calling for any money raised through a proposed new overnight visitor levy in London to be retained fairly by the Boroughs where it is generated.
The Government is expected to give Mayors in England the power to introduce a visitor levy on overnight stays in hotels, bed and breakfasts and other paid accommodation.
Reports suggest London’s levy could be capped at 5 per cent of accommodation costs, with decisions on how revenue is reinvested left to local Mayors.
Cllr Keith Prince AM, Leader of Havering Council, said:
“I have concerns about introducing another charge on people choosing to stay in London, particularly at a time when businesses and households are already facing significant costs.
“But if a visitor levy is introduced, there must be a clear principle that the Boroughs where the money is raised receive a fair share of it.
“Too often, Outer-London Boroughs such as Havering are being treated as cash cows, contributing more and more while investment and spending remain heavily focused on Inner-London.
"A new visitor levy must not become another example of money being raised locally and then disappearing into a central City Hall pot.
“If visitors are staying in Havering, using our roads, town centres, parks, public spaces and local services, then a meaningful proportion of the revenue raised here should stay here and benefit our residents and businesses.
“Havering, like many Outer-London Boroughs, continues to face significant financial pressures.
"Any additional revenue raised locally could help support cleaner and safer town centres, local infrastructure, businesses and frontline services.
“London’s success depends on all of its Boroughs, not just central and Inner-London.
"If a visitor levy is introduced, there must be a fair and transparent system that ensures Outer-London sees a direct benefit from the money raised in their areas.”