THERE was a mixed response to news that the Scottish Government were to roll out legislation allowing councils to introduce their own levy on visitors staying overnight.
Yesterday, Finance Secretary Derek Mackay announced the policy as part of SNP’s Budget agreement with the Greens.
READ MORE: Budget deal done as opposition parties slammed for 'seeking chaos'
He told MSPs: “The Scottish Government will now undertake a formal consultation on the principles of a locally determined visitor levy, before introducing legislation that will permit local authorities to adopt the policy.”
Andrew McRae, policy chair at the Federation of Small Businesses in Scotland, said the announcement was a surprise, as the government had assured firms that it would not happen.
He said: “The Scottish Government’s draft Budget was a spending programme that most firms could welcome.
“But we’ve seen concessions from the Cabinet Secretary for Finance that will erode the small business community’s trust in his administration.
“Instead of Brexit help for firms, we see more tax changes, including a levy on our vital tourism industry.
“Ministers repeatedly promised firms that they would not pave the way for tourism taxes without industry support. They’re breaking that promise today.”
READ MORE: Scottish Labour just proved they can't do grown-up politics
The SNP leader of the City of Edinburgh Council, Adam McVey, who hopes to introduce a £2 per room, per night, tourist tax, said he was delighted with the news.
“I’ll keep speaking to industry to make sure we get this policy right,” he promised.
The council has recently finalised plans for the levy, which would be the UK’s first.
Councillors will vote on the proposals next month.
Edinburgh’s charge would apply to Airbnb-like short lets, but would not be charged to people camping. It would also be capped at a maximum of £14 per room.
More than 2500 residents and businesses responded to a recent city council survey on the tourist tax, with the results suggesting 90% of residents are supportive.
The Scottish Tourism Alliance described the move as “beyond disappointing”.
“Whilst we acknowledge the Scottish Government’s commitment to conducting a formal consultation, we sincerely hope that there will be further economic analysis and detailed transparent examination of options to assess the impact a tourism tax will have on Scotland’s economy, before any implementation of a transient visitor levy be permitted to come into force.
“We look forward to early discussions with cabinet secretaries and ministers to establish what conciliatory measures might be adopted following the announcement to support a sector experiencing significant challenges in relation to its future growth and sustainability, and of course to learn more about the proposals for a formal tourist tax consultation.”
The STUC’s Grahame Smith welcomed the tourist tax: “By devolving tourist taxes to local authorities, the Government has recognised that this expanding economic sector is in need of an overhaul.
“Local taxes will bring welcome benefits for both communities and workers, who often work in low-paid and insecure roles.
“We look forward to working with the Government to explore how these tax changes can support the development of Fair Work and sustainable communities in every corner of Scotland.”
Scottish Retail Consortium director David Lonsdale, who earlier in the week warned of the uncertainty if MSPs did not back the Budget, was pleased to see it pass stage one, but was worried about the knock-on effect to businesses of hikes to council taxes.
“Higher council tax can eat into customers’ disposable incomes” he warned.
He added: “Firms will breathe a sigh of relief that MSPs are set to pass a Budget in a timely fashion, during a period when there is already more than enough political uncertainty.”
Though “far from perfect”, he said, much in the budget “should help support retailers and the wider economy.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here