More than a hundred self-catering operators have lodged formal complaints of maladministration against City of Edinburgh Council, citing unlawful charges amounting to thousands of pounds in unnecessary planning fees.
These fees were imposed during the rollout of the Council’s controversial short-term let (STL) licensing scheme under the leadership of former Council Leader, Cammy Day.
A recent Judicial Review at the Court of Session confirmed that self-catering businesses operating before 5th September 2022 were not required to apply for planning permission or a certificate of lawfulness. However, in 2024, operators were compelled to incur these costs, which could now lead to financial repercussions for the Council exceeding £300,000.
With additional complainants expected, the total compensation owed could surpass £1 million in unlawfully levied fees.
This development follows multiple legal challenges by self-catering operators against the Council’s STL licensing policies. Edinburgh Council has already been forced to amend its policies twice following rulings against it in the Court of Session.
A third legal threat recently prompted the Council to concede once again that its policy was unlawful.
Ralph Averbuch, spokesperson for Justice for Scotland’s Self-Caterers, commented: “Edinburgh Council’s recent actions have caused immense distress and in some cases loss of employment to self-catering operators that had historically been advised no action was required other than moving from council tax rolls to non-domestic rates.
“Now that we have a new regime in place, it has never justified the retrospective hounding of those that traded prior to the introduction of STL Licensing and the opportunities the Council took to use this as a pretext for closing down a sector that accounts for well under 1% of all homes in the capital.
“To be clear, this city needs self-catering to function and the Council’s lack of recognition of the wider impacts has already done great harm, adding cost to operators and visitors alike.”
Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers (ASSC), added: “It is deeply regrettable that the self-catering community must yet again challenge Edinburgh Council’s STL policies which amount to an ideologically driven de facto ban.
“Despite being a professional and integral part of Edinburgh’s tourism economy, legitimate businesses continue to face an existential threat. The mishandling of STL regulations by the Scottish Government was evident from the outset. We continuously warned that they were not fit for purpose and now we are seeing the consequences unfold.
“With the shambolic roll out of licensing across the country, it is only a matter of time before further compensation claims emerge throughout Scotland.”
The city council has yet to comment on this latest development.