The levy will apply to all premises in the London borough licensed to sell alcohol from midnight until 6am. It will commence no earlier than 1 September 2014.
The decision to approve the levy was approved at a public meeting last night.
Of the 1,300 licensed premises in the borough, the Council’s LNL report estimates that 457 licensed premises would have to pay the levy if no exemptions or reductions were permitted.
A 30% reduction in the levy will be granted to premises operating in a best practice scheme. It is expected that 70% of the levy revenue will be paid to the police, with the remainder staying with the council.
Clare Eames, partner at licensing law firm Poppleston Allen, said: “This could be the watershed for other London authorities to follow.”
Islington is the third local authority to implement a LNL, following Newcastle and Cheltenham last year.