New scheme to regulate short-term lets could inflict significant damage on businesses and communities
BUSINESS COMMENT: By David Richardson, Highlands and Islands development manager, Federation of Small Businesses
While all eyes have been fixed on the coronavirus crisis, many fear that plans have been laid which could inflict significant damage on businesses, local economies and communities: the introduction of a new legal scheme to regulate short-term lets. If passed into law, the scheme will come into force on April 1, and self-caterers and B&B operators will have until April 1, 2023, to apply.
In essence, the owners of these businesses will have to apply for licences to operate – licences that come with significant strings attached, adding to their regulatory and administrative burdens and costs. Research conducted by the Association of Scotland’s Self Caterers (ASSC) found that one in three self-caterers believe that they will become unviable and around a half will leave the industry as a result.
Why has this happened? In some corners of Scotland, principally Edinburgh’s Old Town, concerns have been raised about the impact of tourism on housing stocks, a situation exacerbated by Airbnb, and on residents’ lives. Calls for regulation have been mounting, limited consultation has taken place, rapid decisions have been made, and now we have a nationwide scheme awaiting final approval. Quite simply, while FSB Scotland supports appropriate regulations for short-term lets, we believe that the Scottish Government is using a sledgehammer to crack nuts.
Last September, we joined the ASSC in writing to the cabinet secretary for rural economy and tourism, Fergus Ewing, arguing that the statutory instrument as proposed would be extremely damaging and that it should be replaced by a more proportionate and evidence-based regulatory solution. Sadly, the letter had no impact; in fact the situation worsened, B&Bs being added as late as December without proper consultation. And it’s not just businesses that are being jeopardised. Licensing tens of thousands of businesses will add significantly to local authorities’ administrative burdens and costs too.
When all minds should be focused on surviving the pandemic and its aftermath, this is not the time to be introducing new regulations that weaken our chances of recovery. If you are a self-catering or B&B operator, now is the time to write to MSPs raising your concerns.