FSB Scotland today warned councillors in Edinburgh against ‘a headlong rush’ as they prepare to vote on the final approval of the capital’s Visitor Levy plans.
B&Bs, hotels and other accommodation providers in Edinburgh have been warned by the council that they may have to stary applying the levy to advance bookings within 14 weeks under the terms of the proposed scheme.
But FSB Scotland warned small accommodation providers still had many unanswered questions about how the levy would impact on them and their customers. Guesthouses and other small operators such as B&Bs 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:
“In the last 10 months, the council has more than trebled its own estimated costs for setting up the Visitor Levy from £250k to £800k and has doubled its estimated running costs from £500k to £1m a year.
“But Edinburgh’s small accommodation providers haven’t yet been given all the information necessary to plan for the potential impact on them.
“It’s not too late for the council to make the sensible decision to pause the scheme and plan properly for its smooth implementation, rather than engaging in a headlong rush to be the first to implement the levy.
“Local businesses understand the financial pressures facing the council and the pressures that have resulted in the declaration of a housing emergency, but creating a new tax isn’t easy. The council needs to get this right first time and the industry needs to be ready to collect it on the council’s behalf and be assured that its proceeds will deliver direct benefits to the city’s visitor economy.”
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.