In May 2024, Holyrood passed the Visitor Levy (Scotland) Bill. From the outset, let me remind readers that my party did not support this Bill because it so unfairly punishes accommodation providers and consumers with higher costs.
So it would appear, neither do the public. Last week, the response to Perth and Kinross Council’s consultation on the introduction of the levy showed 68% opposition and just 29% in favour. This sentiment was clear from my mailbag and I hope local Councillors take heed.
In principle, my party believes in a much lower tax burden and certainly not more tax grabs via the backdoor. But by Stage 3 of this Bill, it was abundantly clear that many issues remained in the legislation particularly the absence of exemptions. The tourism sector is worth billions to the Scottish economy and supports over a quarter of a million jobs, and yet, rather than allowing it the freedom to grow and flourish, we have one of the highest tax burdens on them in the world. Visitor levies are actually generating less income with the Welsh Government expecting to lose £47m owing to reduced visitor spending and a drop in overnight stays.
However, this debate has been had and the legislation is now here to stay, enshrined in law. So, it is now the aim of my party to do all it can to ensure this legislation works in the best possible interests of businesses. That is absolutely paramount given the considerable concerns that have been raised by stakeholders including the Scottish Tourism Alliance, The Association of Scotland’s Self-Caterers and The Federation of Small Businesses.
And this is exactly what we are doing; just two months ago, Scottish Conservative pressure seemed to facilitate a significant Government climb-down, allowing councils the flexibility to set a flat rate charge rather than certain percentages. This was recklessly followed by further confusion generated by Ministers suggesting they were, in fact, merely considering it. Businesses need clarity, not confusion, and my colleagues are pushing hard for emergency legislation to ensure these changes do indeed take place.
The SNP’s percentage formula is needlessly complex and would likely hit rural and island economies the hardest. Moreover, evidence from Edinburgh has shown booking platforms are unable to operate it and are advising manual workarounds that still produce incorrect prices. This has led to some small accommodation providers saying they are being forced to break the law due to being stuck between the levy and UK pricing laws. It simply doesn’t work.
However, this is just the first step, and many bureaucratic and financial burdens remain in place. We will continue to put pressure on government to cut the excessive red tape on accommodation businesses and to call for the matching of the rates relief enjoyed by the rest of the UK.
