Tag: Fiona Campbell

Scotland’s Self-Catering Sector Hit Hardest By Business Rates Rise

Scotland’s Self-Catering Sector Hit Hardest By Punitive Business Rates Rise

New official statistics show that the Scottish self-catering sector will be the hardest hit by the 2026 non-domestic rates revaluation.

Figures released by the Scottish Government highlight that self-catering properties will see an overall increase in rateable value of 88%, a much higher percentage rise than other property types like pubs, cafes, hotels, and shops.

The Association of Scotland’s Self-Caterers (ASSC) has repeatedly criticised the flawed rental-led methodology for the revaluation process, which sees self-catering as an outlier compared with other commercial property classes, urging reform before it is too late.

Across the country, some self-catering operators have reported eye-watering increases to their non-domestic rates bills of around 400%. Former Scottish Government Tourism Minister Fergus Ewing MSP labelled the proposed revaluations as “just garbage, utter garbage”.

This comes after the 15% rates relief package promised by the Scottish Government’s Budget “will barely touch the sides” and does not go far enough to even mitigate business concerns.

The ASSC’s 2026 Manifesto for the Scottish Parliamentary Elections, released earlier this week, calls for the adoption of profitability-based valuation method for self-catering sector to replace rental comparables. The trade body, as well as a number of cross-party MSPs, implored the Scottish Government to use its powers to halt the revaluation.

Alongside the troubling NDR revaluation, operators are also being clobbered by short-term let licensing fees. For example, Shetland Island Council has just hiked fees for local businesses by up to a staggering 113%.

The ASSC has characterised the regulatory and fiscal situation facing businesses as “overwhelming” and hopes Scotland’s main political parties will adopt the recommendations set out in their manifesto to help bolster the fortunes of Scottish tourism.

Fiona Campbell MBE, CEO of the Association of Scotland’s Self-Caterers, said: “Self-caterers are being hit left, right and centre by all manner of costs and red tape. The cumulative impact on businesses is overwhelming.

“Unfortunately, the NDR relief package announced in the recent Budget will barely touch the sides. We need an immediate pause to the 2026 revaluation and reform of the process before many businesses decide to close for good, hitting local communities the length and breadth of Scotland.

“Our election manifesto signposts a positive and practical route forward on this issue and others impacting our industry. If taken on board, it will help build the foundations for the future sustainable growth of Scotland’s vital tourism sector.”

Visitor Levy Amendment Bill published

Greater flexibility to design local schemes

New legislation has been published that will give councils more choice in how they design and apply a visitor levy to raise funds for local tourist services. 

While local authorities currently have the power to apply a charge on overnight stays based on a percentage of accommodation costs, the Visitor Levy (Amendment) (Scotland) Bill proposes giving councils additional powers to set the levy as a fixed amount.

If passed by Parliament, the legislation will also allow councils to set a range of fixed amounts, such as for different geographical locations, times of year or types of accommodation.

In addition, the Bill clarifies how accommodation providers should report to councils and how levies are applied to sales made through third parties such as travel agents.

Public Finance Minister Ivan McKee said: “When we introduced the original visitor levy legislation, we wanted to empower councils to implement a scheme that was right for their areas and easy to understand for local businesses.

“We worked closely with councils and tourism bodies when the original legislation was considered and passed by Parliament. These new proposals will give councils even more flexibility and provide clarity to businesses.

“We want to ensure visitor levies are an effective option for councils who choose to introduce them to boost investment in local economies and services.”

Fiona Campbell MBE, Chief Executive of the Association of Scotland’s Self-Caterers and Vice Chair of Scottish Tourism Alliance Policy Group, said: “The Association of Scotland’s Self-Caterers warmly welcomes the introduction of the Scottish Government’s Visitor Levy (Amendment) Bill.

“The commitment to introduce much-needed legislative changes in the current parliamentary timetable is an important recognition of the urgency of the situation and the continuing complexities that a percentage-based model presents for Scotland’s valuable accommodation sector.

“If passed, this legislation will give local councils greater flexibility and choice by allowing them to set the levy as a fixed amount. This is a pragmatic change that industry has pushed hard for, and it also reflects a clear cross-party desire to ensure the visitor levy is fit for purpose, proportionate and workable in practice.

“We are heartened that the Scottish Government has listened to consistent, evidence-based concerns.

“We look forward to working constructively with the government and MSPs from all parties as the Bill progresses, to help deliver a levy that boosts local tourism investment in those areas that choose to take it forward, while supporting Scotland’s vital tourism economy.

“Given that change is coming, the sector would encourage local authorities, including those who have already formally consulted on a percentage-based levy, to seriously consider opting for a simpler, more workable fixed amount charge, which will have a less damaging impact on the accommodation businesses that are the lifeblood of our local communities.”

Edinburgh’s plans for Visitor Levy housing spend approved

City councillors have agreed the first spend programme for funding raised by the Edinburgh Visitor Levy.

Members of the Housing, Homelessness and Fair Work Committee approved plans for the £5m Housing and Tourism Mitigation Fund, which could help deliver 472 affordable homes between 2026/27 and 2028/29, with more than 75% potentially available for social rent.

Making more social rent homes available would allow households currently using unsuitable temporary accommodation, such as bed and breakfasts, to access more appropriate settled accommodation. This would return B&Bs to their intended uses of shorter-term guests.

It is expected the Fund would support three new build developments – at Fountainbridge, Meadowbank and Coatfield Lane in Leith – with around 361 social rented homes and around 111 mid-market rent homes.

The investment is subject to approval from Council at the budget meeting on 26 February 2026. If it proceeds, the performance of the delivery programme will be reported to the Housing, Homelessness and Fair Work Committee on an annual basis.

Edinburgh’s Visitor Levy scheme was formally agreed in January 2025.

The levy applies to paid overnight accommodation booked after 1 October 2025, if the stay takes place from 24 July 2026 onwards. It is a 5% payment on the accommodation-only cost and applies to the first five nights’ stay.

The scheme is projected to raise up to £50 million a year to invest in developing, supporting and sustaining services for visitors to the city, and enhancing Edinburgh’s worldwide appeal as a place to visit and live.

Council Leader Jane Meagher said: “Many of those working in our city’s thriving visitor economy and cultural sectors are often unable to find affordable housing in the city, making it difficult for them to live close to where they work.

“In addition, the Council has declared a housing emergency, with more and more people presenting as homeless and not enough social homes available to meet this demand, and so too many residents have to use temporary accommodation, often in bed and breakfasts or hotels, taking vital capacity away from what should be tourist accommodation.

“That’s why it’s so important that this new funding is being committed towards a Housing and Tourism Mitigation Fund, which will be used alongside our existing investment programme for house building.

“This will ensure affordable homes are available for visitor economy workers in the city and means that bed and breakfast and hotel rooms can be used for their intended purpose – to welcome visitors to Edinburgh.

“This is the first fully agreed use of the Edinburgh Visitor Levy’s funds and will help deliver our objectives of developing, supporting and sustaining the quality public services and infrastructure that Scotland’s capital city must deliver for all visitors, residents and businesses.”

The money generated by the Visitor Levy scheme will be reinvested directly into initiatives that benefit residents and enhance visitor experiences.

In addition to housing, the investment streams include: city operations; destination and visitor management; culture, heritage and events; and a participatory budgeting programme, which will further allow residents and communities to have a say in how investment can be made to enhance the visitor experience in their area.

These investment streams are being developed by officers, and the Visitor Levy Advisory Forum will be consulted on all proposals. The proposals will be presented for final approval from relevant Council committees in January and February 2026.

Fiona Campbell MBE, Chief Executive, Association of Scotland’s Self-Caterers and Vice Chair of Scottish Tourism Alliance (STA) Policy Group said: “The ASSC fully supports the delivery of more affordable housing but this is not the right way to go about it.

!The levy was meant to support visitor infrastructure and services, not fund housing projects. Tourism businesses are once again being scapegoated for issues far beyond their making. 

“It is deeply regrettable that Edinburgh Council now lays itself open to further avoidable legal and reputational damage. Instead of brushing aside reasonable concerns, the Council should listen to industry partners who will ultimately be the ones administering their visitor levy scheme.

“We urge the Council to halt these plans immediately until the legal risk has been properly evaluated.”