The Economy, Culture and Skills Committee met on Wednesday 9 September 2026 to discuss the future funding of London's galleries and museums, including the potential for charging entrance fees and the implementation of an overnight visitor levy. The committee heard from a range of experts and museum representatives about the financial challenges facing the sector and debated various proposals for generating additional income.

Funding Challenges for London's Museums and Galleries

Museums and galleries across London are facing significant financial pressures, with reduced public funding and increased operating costs impacting their ability to function. Rebecca Pullen, Chief of Staff at the Imperial War Museum (IWM), highlighted that grant-in-aid in real terms has reduced in recent years, while visitor numbers and associated income have also declined. This trend is echoed by independent museums, as explained by Rhiannon Goddard, Chair of Trustees at the Association of Independent Museums (AIM). Many small, independent museums, often at the heart of their communities, are struggling to recover from the pandemic and are facing rising costs for building maintenance, energy, and staffing. Aaron Pedder, Head of Development at Pitzhanger Manor and Gallery, noted that while their costs have increased by 50% in the last two years, the rate of visitor growth is not enough to outpace these rising expenses. Jenny Waldman, Director of the Art Fund, confirmed that public funding for culture has dropped significantly since 2010, with DCMS core funding for cultural organisations decreasing by 18% and local government funding for culture falling by 48%.

Debate on Entrance Fees for National Museums

A key discussion point was the potential for national museums to introduce entrance fees, particularly for international visitors. 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 current business model, which relies on income from cafes, shops, exhibitions, and membership. He also noted that the idea of charging international visitors was predicated on a digital ID scheme, which is no longer imminent.

Jenny Waldman of the Art Fund strongly advocated for the principle of free entry to national museums, stating that it is a founding principle and that the national collections belong to all of us. Polling data indicated that a significant majority of UK adults support using revenue from a potential tourist tax to keep national museums free. The practical challenges of identifying and charging international visitors, especially without a digital ID system, were also raised.

However, some argued that free entry is misleading as these institutions are funded by taxpayers. Lord Bailey of Paddington questioned whether the museum sector felt consolidation was coming due to restricted subsidies, and whether museums should consider charging even a minuscule fee for long-term survival.

The Overnight Visitor Levy: A Potential Solution?

The committee extensively debated the proposed overnight visitor levy, a tax on hotel stays, as a potential source of funding for London's cultural sector. Howard Dawber OBE, Deputy Mayor for Business and Growth, stated that London is the largest G7 city without such a levy and that it could be a valuable source of income to support growth. However, Kate Nicholls OBE, Chair of UKHospitality, expressed strong opposition, arguing it is the wrong tax at the wrong time and would make London less competitive, citing high existing tax levels and the impact on domestic visitors. Matthew Fell of BusinessLDN emphasised the need for any levy to be simple, consistently applied, and for its proceeds to be strictly used to promote London and attract tourists.

There was considerable discussion on whether the levy should be a flat rate or a percentage of the accommodation cost. While BusinessLDN initially favoured simplicity through a flat rate, the Deputy Mayor and Centre for Cities argued for a percentage rate, deeming it fairer and more progressive, especially given the wide variation in accommodation costs in London. UKHospitality, however, advocated for a nationally consistent flat rate to minimise administrative burdens on businesses.

Concerns were raised about how the levy would be collected, particularly from platforms like Airbnb. Kate Nicholls stressed the need for a statutory registration scheme for all commercial accommodation providers to ensure fair collection and enforcement. The potential for the levy revenue to be diverted to general council services, rather than being ringfenced for the visitor economy, was a significant concern for many. The Deputy Mayor assured that the intention was for the funds to be reinvested in growth and sector support, but acknowledged that the exact spending would be subject to consultation and government restrictions.

London Stadium Finances and Future

Lyn Garner, Chair of London Stadium LLP, provided an update on the stadium's challenging financial position, with an estimated operating loss of around £19 million for 2025/26. She acknowledged that the current contract with West Ham United, signed ten years ago, is financially beneficial to the club and has led to tensions. Garner expressed that she would not recommend signing the current deal if presented today.

Despite the financial difficulties, Garner highlighted the stadium's success as a multi-use venue, hosting Premier League football, MLB, concerts, and athletics, bringing significant economic benefits to London. The delay in securing naming rights was attributed to a split in ownership of the rights between the stadium and the club, and a lack of a united front in negotiations. The club's recent relegation to the Championship has further complicated efforts to secure lucrative naming rights deals.

Discussions around hosting the 2029 World Athletics Championships were also covered. While Garner sees it as a fantastic opportunity for London with significant economic benefits, the timing in September conflicts with West Ham United's football season, and the club's agreement gives them priority use and a veto. The club's new leadership is reportedly open to dialogue on this and other issues, including potential stadium improvements to enhance the fan experience and commercial opportunities outside of football.

Strategic Licensing Pilot

The committee also received an update on the Mayor's strategic licensing pilot. Justine Simons OBE, Deputy Mayor for Culture and the Creative Industries, highlighted the economic and cultural importance of London's nightlife. However, guests like Jim Cathcart of UKHospitality and Alun Thomas, licensing solicitor, pointed to the current rigid and inconsistent approach to licensing across London boroughs, which can hinder businesses. Brian Hook, a theatre producer, shared examples of restrictive licence conditions that impact the viability of cultural venues. The new Mayoral powers to 'call-in' licensing applications of strategic importance were discussed, with a preference for collaborative working with boroughs rather than solely relying on call-in powers. Marsha Kuye, Head of Licensing and 24-Hour London, outlined the work being done to establish the necessary resources and data collection for the GLA to effectively exercise these new powers.

The committee concluded that while the new licensing powers have the potential to boost London's nighttime economy, careful consideration must be given to working with boroughs, engaging with the theatre sector, defining 'strategic' applications, and ensuring adequate resources and data collection.