Tourist levy rules branded a ‘shambles’ by Tories – Daily Business

Scottish public finance minister Ivan McKee has been accused of mishandling the tourist levy by failing to issue clear rules to local authorities.

The minister stated on Friday that the government was “actively extending powers” to local authorities to offer a flat-rate charge on overnight stays.

But in a further announcement this was amended to say the government was only “actively considering extending powers”.

The Conservatives tourism spokesman Murdo Fraser branded the change as an “embarrassing shambles.”

He said councillors could not “take a final decision on what they are going to do if they don’t know when they are going to be given these powers, or if at all.

“This legislation is now in chaos. The minister has directly contradicted himself in the space of two letters. Ivan McKee owes businesses and councils an urgent explanation and clarity over whether councils will have the flexibility to set a flat rate on the visitor levy, and when.

“Councils are actively consulting on this, and they must have clear guidance as soon as possible.

“No council can decide whether they want to introduce a visitor levy if they don’t know whether, or when, they will get these powers or not.

“Given the shambles the government have now delivered, there must obviously be a moratorium on introducing these proposals by any Council until the SNP can give us a clear answer on what the rules are going to be.”

Holyrood passed legislation in 2024 allowing for a tourist charge to be applied on stays in hotels, self-catering properties and other forms of accommodation.

Authorities in a number of areas, including Edinburgh and Glasgow, are planning to bring in a charge, with the two cities proposing a 5% fee.

Mr McKee said some councils want the flexibility to introduce a flat-rate charge.

While he said the government is “minded” to make that possible, doing so requires a change in the law, so a “suitable legislative vehicle” now has to be found in a busy business programme in the run-up to next year’s election.

“Finding a slot for this is very difficult,” he said.

Fiona Campbell, chief executive of the Association of Scotland’s Self-Caterers, commented: “We recognise the considerable legislative hurdles that must be overcome, but hope this can happen as swiftly as possible to protect affected businesses.

“However, it was regrettable that challenges were not addressed earlier and that the legislation was not fit for purpose from the outset – had a more pragmatic approach been taken, we could have avoided the unnecessary uncertainty and operational risk businesses are now facing.

“With the strong opposition seen in Stirling and Argyll & Bute, others are very likely to follow suit,“ she added.

“We would strongly encourage other councils to postpone consideration of a visitor levy until they know what alternative charging arrangements they could introduce.“