£500k Summer Streets Boost for London Hospitality Firms

Mayor of London Sadiq Khan has pledged to invest £500,000 into London hospitality firms, as part of this year’s Summer Streets initiative.

The campaign, which was introduced last year to support restaurants, pubs and bars across the capital, will be used to boost footfall, expand outdoor trading, and help businesses make the most of the busy summer season.

Alongside the investment, Khan has also allegedly secured new licensing powers to support London’s night-time economy, including al fresco dining and longer opening hours across the capital.

What is the Summer Streets fund?

The Summer Streets fund is an initiative introduced by the Mayor of London to support al fresco dining and events in the city over the summer period.

The initiative was first introduced last year, when Khan announced a £300,000 investment to help encourage spending. Through traffic-free zones and special licenses for extended outdoor service, the fund allows businesses to expand outdoor seating, increase footfall, and strengthen trading during the peak summer months.

Now, Khan is bringing Summer Streets back for 2026 – this time with a heftier £500,000 investment, shared across 15 streets in the capital.

There will be four large investments of £100,000 for streets in Barking & Dagenham, Brent, Greenwich and Lambeth, and 11 further “pocket” schemes in Newham, Waltham Forest, Camden, Brent, Sutton, Haringey, Ealing, Hounslow, Islington and Lewisham.

“I’m delighted that we’re working with boroughs and local businesses to bring al fresco dining, live music, events and later opening hours to streets across our capital.” Khan comments, as quoted by Restaurant Online.

“From Woolwich to Willesden Green, Finsbury Park to Feltham, and right in the heart of the capital in Waterloo, this investment will create new outdoor spaces, support local businesses and give Londoners and visitors even more reasons to get out and enjoy our city.”

Summer Streets could offer relief for struggling hospitality firms

The return of the Summer Streets initiative could lend a major helping hand to struggling businesses across London, particularly with high value-added tax (VAT) and rising costs pushing many hospitality venues to the brink.

According to a survey published by The Morning Advertiser, 16% of hospitality firms across the UK say they are at risk of failure in the next 12 months. Additionally, 23% say they’re operating at a loss – up 15% from three months ago – while 5% say their business is no longer viable.

“We are seeing the devastating impact of hospitality’s heavy tax burden escalate before our eyes.” UKHospitality, the British Beer and Pub Association (BBPA), the British Institute of Innkeeping (BII) and Hospitality Ulster, said in a joint statement.

“The reality is stark. The number of businesses now operating at a loss is accelerating rapidly and too many businesses are facing the gut-wrenching decision of whether they have to close their doors for good.”

However, with the return of the Summer Streets fund and the World Cup expected to surge hospitality spending, businesses could receive a much-needed lifeline during one of the busiest trading periods of the year.

Licensing powers could strengthen Khan’s influence over night-time economy

As well as financial support, Khan has also gained licensing powers that strengthen his influence over licensing decisions and borough policies.

This includes a London-wide Strategic Licensing Policy, allowing him to make formal representations and be consulted on changes to borough licensing policies. Decisions by councils to refuse later opening hours for pubs and clubs could be overturned.

Earlier this month, Khan proposed new Government-backed powers that would allow him to override objections to new licence applications for restaurants, pubs, and bars in Soho.

Moreover, despite concerns over pedestrianisation in the area – with residents’ group Soho Society complaining about noise caused by people drinking and dining outside – The Guardian reported that restaurant businesses will be allowed to place chairs outside during the summer from 2027.

Kate Nicholls, chair of UKHospitality, comments: “It’s fantastic to see so many London boroughs taking advantage of the mayor’s summer streets fund.

“From food markets and al fresco dining to World Cup screenings, it shows the power of hospitality to drive activity and bring our communities together. I look forward to seeing the success of all the events this summer.”