The London Assembly's Economy, Culture and Skills Committee met to discuss the future funding of London's galleries and museums, including the potential introduction of entrance fees and the use of an overnight visitor levy. The committee heard from museum representatives, industry bodies, and the Deputy Mayor for Business and Growth, who all expressed concerns about the challenging financial environment facing cultural institutions.

A significant portion of the meeting focused on the potential introduction of an overnight visitor levy, with differing views on its design and impact. While some argued it could provide crucial additional funding for cultural growth, others warned of negative impacts on London's competitiveness and the hospitality sector. The committee also discussed the ongoing financial pressures on museums and galleries, and the potential for charging admission fees at national museums.

Museum Funding and Potential Charges

Museums and galleries across London are facing significant financial challenges, with reduced public funding and increased operating costs. Rebecca Pullen, Chief of Staff at the Imperial War Museums (IWM), highlighted that grant-in-aid has reduced in real terms, leading to decreased visitor numbers and associated income. Rhiannon Goddard, Chair of Trustees at the Association of Independent Museums (AIM), echoed these concerns, noting that many independent museums rely heavily on earned income from admissions and commercial activities, which are being impacted by declining visitor numbers and rising costs.

The potential for introducing entrance fees at national museums was a key topic. Sir Tristram Hunt, Director of the Victoria and Albert Museum (V&A), expressed scepticism about charging international visitors, fearing it would reduce visitor numbers and disrupt the V&A's existing business model, which relies on income from cafes, shops, exhibitions, and membership. Jenny Waldman, Director of the Art Fund, emphasised that free entry is a founding principle of many national museums and that public support for free entry remains high. She also highlighted the operational challenges and potential negative impact on visitor numbers and the wider visitor economy if charges were introduced.

The Overnight Visitor Levy

The potential introduction of an overnight visitor levy in London was a major focus of the discussion. Howard Dawber OBE, Deputy Mayor for Business and Growth, stated that the Mayor of London welcomes the principle of such a levy, seeing it as a potential source of income to support growth in the visitor economy. He noted that London is the largest G7 city without such a levy and that it has been successfully implemented in competitor cities. However, he acknowledged that the Government's consultation response is awaited, which will shape the details of any potential levy.

There were differing views on the design of the levy. BusinessLDN, represented by Matthew Fell, advocated for a simple, nationally consistent flat-rate approach, while the Centre for Cities, represented by Anthony Breach, favoured a percentage-rate system, arguing it is more progressive and fairer. UKHospitality, represented by Kate Nicholls OBE, expressed strong opposition to the levy, arguing it is the wrong tax at the wrong time and would negatively impact London's competitiveness, particularly given the high existing tax burden on the hospitality sector. They warned that any additional tax would be passed on to consumers, potentially deterring visitors and impacting jobs.

A key point of discussion was how the revenue generated by the levy should be used. There was broad agreement among the panel that the funds should be reinvested in measures that support growth in the visitor economy, such as marketing and infrastructure, rather than replacing existing public service funding. However, there were differing views on the extent of ringfencing and the role of boroughs versus the GLA in managing the funds. Sir Tristram Hunt proposed that 50 per cent of the levy revenue should be allocated to free-entry institutions to maintain free access.

Other Matters

The committee noted actions taken under delegated authority and the work programme for the Economy, Culture and Skills Committee. The meeting concluded with the committee noting the discussions and delegating authority to the Chair to agree any output arising from the discussions. The next meeting was scheduled for 8 October 2026, focusing on youth unemployment.