South East Councils (SEC) has welcomed the Government’s announcement in the Autumn Budget that Mayors will be given powers to introduce overnight visitor levies.
The move marks a positive step towards meaningful fiscal devolution and reflects long-standing calls from SEC to bring decisions on tax and spend closer to the communities they affect.
In 2022, SEC commissioned Localis to produce Resetting the South East: Levelling Up After Brexit, Climate Change and COVID.
Among its recommendations, the report highlighted the importance of fiscal reform, including exploring locally raised revenue measures such as tourism levies.
This was followed by an inquiry by the All-Party Parliamentary Group (APPG) for the South East – Financing for the future – what does levelling up mean for South East England?
Evidence to the inquiry emphasised the value of meaningful fiscal devolution, with locally controlled visitor levies identified as one potential tool to support long-term financial sustainability.
In March 2025, SEC submitted further research on this issue to the Public Accounts Committee.
Polling from the South East 1,000, conducted with Savanta ComRes, found that two-thirds (66%) of councillors believe decisions on tourist taxes should be set and managed locally.
With mayoral elections scheduled in Hampshire & the Solent and Sussex & Brighton in May 2026, and discussions ongoing in other areas such as Surrey, local authorities within future mayoral areas are expected to benefit from the powers announced today.
The introduction of visitor levy powers comes at a time of significant change across the region, with devolution and local government reorganisation creating a transition period for many authorities.
Within this context, there remains scope for further progress on wider fiscal reform, building on the momentum of the first multi-year settlement in a decade and ongoing discussions through the Fair Funding Review 2.0.
Future reforms could support councils with greater stability, clearer incentives for local growth, and tools that reflect the region’s higher costs of living and service delivery.
Alongside this, councils continue to work to reshape service commissioning, particularly in areas such as social care and SEND, where pressures remain acute.
Taken together, thoughtful national reform and local innovation will be essential to ensuring long-term financial sustainability and high-quality local services across the South East.
