Highland Council Visitor Levy stance is ‘digging its heels in – on shifting sands’ after Labour and LibDem calls for a pause to its scheme were rejected by the SNP-Highland Independent bosses
Highland Council stance on the controversial Visitor Levy is “‘digging its heels in – on shifting sands” after SNP-Highland Independent bosses rejected Labour and LibDem calls for a pause.
The scheme is considered scandalous by many accommodation operators because the charges are processed like VAT so effectively bump them into a higher tax threshold that they cannot afford.
The fear is that many mostly smaller operators would go out of business while others feel it might put some tourists off coming, though there is no real evidence for that from other countries where such levies are commonplace.
But a bid at last week’s full meeting to get Highland Council admit to the major risks posed by the levy and to “pause further progress” towards implementation and introduce a charge for campervans was rejected.
That, according to the proposer of the motion, Councillor Michael Gregson, leaves the local authority as an outlier within the group of similar councils who are thinking twice about the charge.
He said: “The recent decisions on the Visitor Levy, by Orkney Islands Council, Shetland Islands Council, Argyll and Bute Council and Comhairle nan Eilean Siar, really do isolate Highland Council in its obdurate and stubborn position.”
“The council needs to take a breath before going ahead with a Visitor Levy. With a Scottish Parliament committee currently taking evidence, consultation responses apparently still to be evaluated, and economic impact assessments incomplete, pausing makes sense. The council’s stubborn breenging on suggests desperation for the supposed £10 million revenue the Levy might generate.
“This is a really important issue, deserving proper consideration. Last week’s debate was late, rushed, and the Chamber had partly emptied. This was poor from the administration: many people across Highland communities, businesses and representative organisations, have an interest in this.
“Highland must have the right Visitor Levy. If and when introduced, it must support and develop the visitor economy, strengthen off-season demand and improve tourism infrastructure.”
Cllr Gregson believes that it is becoming a trend for the council administration to be met with opposition and then become “peevish when challenged” as in the cases of “Academy Street, the Renewables Map, Short Term Lets.”
He said: “The proposals to pause implementation for an Economic Impact Assessment to transfer the burden of collection from hospitality businesses to the Council via a QR code system, and to bring motorhomes and cruise ship passengers into the scheme via digital mechanisms to engage constructively with the Scottish Government, and all stakeholders, to ensure a workable, fair and effective Levy were basically dismissed.
“Even the reasonable suggestion that an SNP-led Administration might engage with an SNP Scottish Government was rejected. Issues like a flat rate vs a percentage, exemptions (e.g. for Highland residents in general, or for having to travel for medical reasons), the charging of VAT on top of a tax – these need to be addressed.
“The debate is evolving. The Scottish Parliament’s Economy & Fair Work Committee is taking evidence and is likely to change the ball game. The Scottish Government has to draft a fresh Bill. So, it’s even more disappointing that the council is digging its heels in – on shifting sands.”