26/05/2025
Full debate.
23 May 2025
Visitor Levy Questions at Scottish Parliament this week
Visitor Levy (Highlands)
6. Douglas Ross (Highlands and Islands) (Con)
To ask the Scottish Government what discussions the economy secretary has had with ministerial colleagues regarding the potential impact on businesses and residents in the Highlands should a visitor levy be introduced. (S6O-04677)
The Minister for Public Finance (Ivan McKee)
I am answering the question as the minister responsible for the visitor levy.
The Visitor Levy (Scotland) Act 2024 requires local authorities to prepare and publicise an assessment of the impact of any proposals to introduce a visitor levy, including on local businesses and residents. I regularly discuss a range of issues with my ministerial colleagues, and I hope to meet Ms Forbes shortly, in her capacity as an MSP, as well as Highland Council representatives to discuss the possible introduction of a visitor levy in the Highland Council authority area, as detailed in the act that was passed last year.
Douglas Ross
I understand that Ivan McKee is the minister responsible for this, but given the portfolio team that is in front of us, it is disappointing that a question about the Highlands was answered by the only minister who does not represent a part of the Highlands.
Does Ivan McKee accept the severe criticism about the potential for a visitor levy, including from the Highland Hotels Association, which only this week warned that it is “exceptionally frightening” for a tourism tax to be introduced in the Highlands? Does he also accept that that will impact not only on tourists who visit the area, but on local residents who have to travel from rural areas for overnight stays and potential early-morning hospital appointments? They should not have to rely on clawing that money back—they should be exempt from the very beginning.
Ivan McKee
First, the reason why Ms Forbes did not answer the question is that she has a constituency interest—I think that Douglas Ross will understand that situation. Also, I am the minister responsible for the visitor levy.
I am well aware of the concern that has been raised in the Highlands, in particular, and elsewhere. Indeed, I have had a series of meetings with the Scottish Tourism Alliance, the Association of Scotland’s Self-Caterers and others with regard to the issues that the levy can raise for small businesses in particular.
As the member is aware, the responsibility for implementing a levy lies with each local authority, and there is a range of provisions in the act to allow the local authority to design a system that is able to cater to the needs of local businesses. I am keen to continue to engage with members, local authorities and industry representatives as we seek to take the legislation forward, and as councils seek to implement it in their local areas.
Fergus Ewing (Inverness and Nairn) (SNP)
All four ministers know that I have opposed the tax from the outset, and that I voted against it. It is a percentage tax on which additional VAT will be payable—in other words, it is two sets of tax.
The minister knows that I have argued that the tax is uncollectible and that it will lead to a fiasco, that nobody has worked out how to collect it and that the information technology systems that will be necessary to administer it do not exist. Does he agree that it might be the death knell of many hard-working and excellent bed-and-breakfast establishments in the Highlands and throughout the country? He has been told that again and again. Will he call a halt to this outrageous and poorly designed tax?
Ivan McKee
The member will be aware that it is up to local authorities to choose whether to implement the tax. Highland Council proceeded with a consultation, and it is now reflecting on the response.
As I have said, I will meet Highland Council representatives shortly to discuss where the council is in that regard and the options that are available to it. The tax is set out in legislation, as the member is aware, and the City of Edinburgh Council is the first council that intends to implement it; it will do so next year. As I have said, we will continue to engage with other councils, as we learn from that implementation, to understand what their plans are in their local areas.
Collette Stevenson (East Kilbride) (SNP)
Visitor levies are very common in many parts of the world, including 21 European countries, and they bring benefits to visitors and residents alike, especially in high-traffic tourist destinations. Will the minister say more about how the decision to empower local government could benefit communities and businesses across Scotland?
Ivan McKee
The 2024 act gives local government the most significant new powers in that regard since devolution. It has provided businesses with the opportunity to work with their local council in order to generate funds for enhancing facilities that are frequently used by visitors and residents alike.
Funds can also be used to promote culture and heritage events, extend the tourist season and drive more business and economic activity. Many businesses and organisations recognise the value that the levy can bring, and it will help sustain and enhance the visitor experience by making destinations more attractive and competitive.
