A rush to introduce the first Visitor Levy of its kind in the UK risks causing significant disruption to accommodation providers in Scotland’s capital, FSB Scotland warned today.
B&Bs, hotels and other accommodation providers in Edinburgh are expected to start applying the surcharge to advance bookings in May under the plans due to be voted on by councillors on Friday.
But FSB Scotland today warned there is considerable concern about the timescale for introducing the levy among small operators such as B&Bs who make up around half of those who will have to implement the charge.
Garry Clark, FSB’s development manager for Edinburgh and the East of Scotland, said:
“There is an expectation that B&Bs and other small operators will start applying the levy to advance bookings in 15 weeks’ time, but the platform which is being introduced for the purpose is still in development.
“There simply isn’t enough time to meet the deadlines laid out by the city council without risking significant disruption to the businesses who will have to apply the charge and their customers.
“We know from experience that delivering new IT systems can be fraught with difficulties. It is vital the new platform which is intended to be used in other local authority areas who adopt a Visitor Levy is thoroughly tested before bookings go live.
“The city council has declared its aim is to introduce the Visitor Levy as quickly as the enabling legislation will allow. We understand the financial pressures local authorities are under and the importance of the new revenue stream to the council, but that shouldn’t be its priority, it should be ensuring as far as possible that the launch goes without a hitch.
“Business sentiment towards the Visitor Levy has shifted. Many small businesses have warmed towards the idea, recognising the vital investment it can bring to improve infrastructure and services for the good of visitors, residents and local businesses alike.
“However, there are still unanswered questions about the way in which the levy is being introduced in Edinburgh, including whether its plans for investment in housing and participatory budgets are legally robust.”
ENDS
Editors’ Notes:
· A full copy of FSB Scotland’s response to the City of Edinburgh Council’s consultation on a Visitor Levy for Edinburgh can be found here.
· The City of Edinburgh Council’s revised Visitor Levy proposals can be found here.
· The Federation of Small Businesses (FSB) is a non-profit, non-party-political organisation that offers its members a wide range of vital business services, including advice, financial expertise, support and a powerful voice heard in governments. Founded in 1974, FSB celebrates its 50th anniversary in 2024. More information is available at www.fsb.org.uk
· Micro and small businesses comprise almost all enterprises in Scotland (98%), employ over 900,000 people and turn over £93bn.