Chamber and committees

I live in hope that the new agency will help to deliver the increase in house building that Scotland desperately needs. However, history tells us that SNP quangos rarely deliver for Scotland.

Almost two years ago, this Parliament declared a national housing emergency, and ministers in this chamber promised urgent action. Creating a new housing agency that will not even be operational until 2028 is not decisive action—it is kicking the can down the road.

What will the Scottish Government do right now—not in two years’ time—to support the building of more homes by supporting the private sector and to tackle the appalling backlog in social housing?

I live in hope that the new agency will help to deliver the increase in house building that Scotland desperately needs. However, history tells us that SNP quangos rarely deliver for Scotland.

Almost two years ago, this Parliament declared a national housing emergency, and ministers in this chamber promised urgent action. Creating a new housing agency that will not even be operational until 2028 is not decisive action—it is kicking the can down the road.

What will the Scottish Government do right now—not in two years’ time—to support the building of more homes by supporting the private sector and to tackle the appalling backlog in social housing?

Thank you. I am conscious of time, convener, so I will move on to my next question.

There is a debate about whether the fixed-rate model for accommodation providers and customers should be a fixed rate per unit as opposed to per person. I would be interested to hear, briefly, from one or two local authorities why per unit is not favourable and why there seems to be more emphasis on per person.

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You have given ripe descriptions of how complicated it could turn out to be for those who are having to administer the levy. I do not have any further questions, convener.

It is in relation to contingency and future proofing against potential compliance loss and collection error. I can use Glasgow City Council as an example, because its modelling has shown a 5 per cent levy generating £16.9 million—approximately £4.86 per night—while the proposed tiered banded model could generate £23.6 million, but it comes with significantly higher complexity around the modelling. The question is about compliance and the loss that is generated and what suits local authorities alongside the sector to simplify the model and make it the best possible model.

Good morning. I hope to find out a little bit more about how multiple schemes might operate, or not, in a local authority area. My understanding is that we need the system to be simplified so that it is easy to understand and process. I see a couple of nodding heads.

Marc, you are looking at me, so I will come to you first.

Thank you for that.

I raised with the previous panel the example of Glasgow City Council and the operational risks and impact of a complex system in relation to pricing, variable lengths of stay and multiple booking platforms, which we have just been discussing. Have you had any contact with local authorities on the contingency modelling that they might or might not have done? Has there been any back-and-forth between the sector and local authorities? I am assuming, again, that that will be really important when it comes to mitigating risks.

Perhaps Marc Crothall or Fiona MacConnacher can take that question—or someone online, perhaps.

The 2026 non-domestic rates revaluation is causing considerable concern across several sectors, particularly hospitality and retail. I am wondering what the cabinet secretary’s initial response is. Even this morning, MSPs have heard from the Scottish hospitality group, which has sent a briefing paper outlining and detailing its concerns about the impact that non-domestic rates will have on the sector.

Thank you, cabinet secretary. There is a lot to unpack there. I will get on to rates relief in a second.

The issue with the revaluation is that not all sectors are assessed in the same way. That has resulted, unfortunately, in hospitality businesses being penalised with extraordinary increases in rateable values. Some of the figures are eye-watering: between 500 and 800 per cent, or more. Would the cabinet secretary reflect on that?

Surely, when you are going through revaluation, the consultation has to be done across the board with the full sector. The scenario now is that you are saying that things will even out in a few years’ time, but some of those businesses do not have a few years for things to even out. What is your direct response to hospitality businesses that have not been fully considered when it comes to non-domestic rates?

I understand that well. The issue is that businesses will be looking at where it is best for them to set up—where they will get the best bang for their buck—to be viable and sustainable and to grow. Through the non-domestic rates revaluation, potentially, particularly in some parts of the sector, the story will be of bad news rather than the sustainability and fluidity that is needed in that sector. That is my point, not from the numbers context, which is understandable, but in terms of what businesses see and how they are comparing between Scotland and the rest of the United Kingdom.

I would be interested to hear estimates of how much businesses’ NDR bills will increase next year after revaluation and new reliefs. I know that I have touched on that, cabinet secretary, but I ask just in case you have any further comment on how much, on average, hospitality, retail, and leisure businesses will have to pay. It will be good to have a comparison between the three of them.