Official Report 568KB pdf
Visitor Levy (Miscellaneous Amendment) (Scotland) Regulations 2026 [Draft]
After that brief interlude, we turn to item 3, which is consideration of an affirmative Scottish statutory instrument. I welcome back the Minister for Public Finance, as well as her officials from the Scottish Government: Fiona Campbell, visitor levy and cruise ship levy team leader, and Susan Robb, solicitor. Thank you all for joining us today.
Following the evidence session, the committee will be invited under the next item to consider a motion to approve this affirmative instrument. I remind everyone that the Scottish Government officials can speak under this item but not during any debate that follows the motion.
I invite Ms Goodlad to make some opening remarks on the SSI that is before us.
I will make only a few opening remarks, given that we have already had quite a long session and I want to ensure that there is appropriate time for questions.
The new regulations are technical and make amendments to the Visitor Levy (Local Authority Assessment) (Scotland) Regulations 2026, providing clarity without changing the underlying policy.
The amendments do not impose any new administrative burdens on accommodation providers. They provide clarity on how penalties and interest may apply and where a local authority has made an assessment on the amount of levy due. They also make some drafting amendments that were highlighted by the Delegated Powers and Law Reform Committee when it considered the draft Visitor Levy (Local Authority Assessment) (Scotland) Regulations 2026.
The regulations also amend the First-tier Tribunal for Scotland Local Taxation Chamber (Rules of Procedure) Regulations 2022 to provide drafting clarity with regard to references to the “the 2024 Act” making it clear where the Visitor Levy (Scotland) Act 2024 is referred to in the instrument.
I am happy to take any questions from members and to speak to some of the technicalities. I also have my officials with me to provide support.
Before I bring in other members, I have one question to put. In light of the fact that the levy is now up and running, are there any significant signs of non-payment that this SSI would help to remedy?
The visitor levy was introduced in Edinburgh in June or July. It is very new. Other authorities across Scotland are considering introducing a levy in 2027.
This is a precautionary measure. We are only a couple of months into its implementation, so we are still very much monitoring the position.
I ask my officials to come in.
The Visitor Levy (Scotland) Act 2024 specifies that returns should be made and, generally, local authorities have applied a quarterly approach, tying in with the financial year quarters. The levy went live in Edinburgh on 24 July. The first returns, which will cover July, August and September, will be made in October. It is only when those are submitted that we will see whether there is any non-payment. We are not expecting that to be the case; we assume that most accommodation providers will comply with the legislative requirements.
Edinburgh is pursuing a percentage-based fee. The legislation was amended in the closing days of the previous session of Parliament to allow for a flat fee. Is there any anecdotal evidence to suggest that, where there could be non-compliance, that could be down to people taking some time to learn the ropes of the system?
That is a fair point. That very much could be the case. The levy has been in place for about five to six weeks. That will have to be considered in the round, convener, to understand whether there is deliberate malice in avoiding payment or whether it is simply an oversight arising from the new regulation, given the complexities that are involved. The levy applies solely to room rates. Transport, meals and everything else cannot be considered as part of that. Let us give the measure time to bed in.
Other authorities are considering introducing the levy, but as a flat fee. Highland Council is considering introducing a £5 fee per room per night, as well as a £2 fee for other places where people might stay. Argyll and Bute Council is considering a £5 fee per night. Let us see where this goes.
As no member has any questions or comments, we will move on to item 4, which is the formal consideration of motion S7M-00407.
Motion moved,
That the Social Justice, Housing and Local Government Committee recommends that the Visitor Levy (Miscellaneous Amendment) (Scotland) Regulations 2026 [draft] be approved.—[Hannah Mary Goodlad]
Motion agreed to.
Thank you, minister, for your second appearance before us. We will let you get on with the rest of your day.
Are members content to delegate responsibility to me to approve a short factual report to the Parliament on the affirmative instrument?
Members indicated agreement.
11:26
Meeting continued in private until 12:46.
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