A Scottish Parliament Committee is supporting the general principles of a new Bill aiming to give councils more flexibility in designing visitor levy schemes.
The Visitor Levy (Amendment) (Scotland) Bill updates the Visitor Levy (Scotland) Act 2024, which granted local councils the discretionary power to introduce charges for overnight visitors, and amends the position in the Act that levies could only be charged as a percentage of accommodation costs. Councils could instead apply a fixed amount per night or per-person-per-night, or set different fixed amounts for different areas, times of year or accommodation types.
In its report, the Local Government, Housing and Planning Committee supports the ability for councils to choose different models but recognises that the introduction of multiple options has the potential to create a “complicated landscape” across Scotland, and even within individual local authority areas, and describes the monitoring of this as “essential”.
The Committee recommend that the Scottish Government should amend the Bill to clarify whether a chargeable transaction could be subjected to more than one scheme – describing this current uncertainty as “unhelpful”.
While the Government said it developed its estimates of the potential costs for local authorities and businesses in consultation with stakeholders, local authorities and businesses have presented different estimates to the Committee.
Given these discrepancies – and the Bill’s wide discretion leading to varied local approaches – the Committee is seeking a fuller explanation of how stakeholders were engaged, why estimates differ, and what amendments and associated costs the Government is considering ahead of Stage 2.
Local Government, Housing and Planning Committee Convener, Ariane Burgess MSP, said: “The timetable for this Bill has been challenging but we recognise the Scottish Government’s response to the calls of many stakeholders for flexibility.
“Our report outlines a number of recommendations for the Scottish Government, including an explanation on the discrepancies on the Bill’s costings, clarity over consultation and transition periods for councils who have already adopted visitor levy schemes and what changes it is considering making at Stage 2.”
