Meeting of the Parliament 28 May 2024
I start by thanking the Parliament clerks, the clerks of the Local Government, Housing and Planning Committee, the bill team and all the stakeholders who joined us to help shape the bill. The debate has brought back memories of our visits to Orkney Islands Council and to Aviemore, where we spoke with representatives of Highland Council and other stakeholders.
The Scottish Greens are pleased to see the Visitor Levy (Scotland) Bill come to its final stage today, having secured its introduction during budget negotiations back in 2019. The approach—capturing for communities the benefits of Scotland’s global appeal—has been the norm in many of the world’s top tourist destinations for a long time.
It has been the long-standing position of the Scottish Greens that councils should have greater financial powers to raise their own revenues, as opposed to the current position, in which around two thirds of their budget comes from Scottish Government grant. We have some of the most centralised and least empowered local government on our continent, but that is gradually changing.
The visitor levy power is an important part of a much wider set of empowerment measures and must be joined, as soon as possible, by a cruise ship levy—a move that will be of particular benefit to the island councils in my region, and which was announced by the Greens last year. Greens’ proposals for a cruise ship levy are linked to emissions, so that the biggest and most-polluting boats would pay more. Our island constituents deserve our full consideration of all such issues, and that can be done only through stand-alone legislation.
We are incredibly fortunate that Scotland is such an attractive destination for visitors, whether they come from abroad or from the rest of the UK, or it is our residents choosing to explore and enjoy their own country for their holidays. Nowhere is that more true than in my region. From Shetland to Speyside and from Skye to the small isles, that is great for our economy, especially in fragile rural communities, although it also puts huge pressure on rural communities, the natural environment and public services. Rarely does a summer season go by without local—and often national—headlines about inconsiderate or even dangerous parking, antisocial behaviour and litter on the north coast 500. Clearly, that is from a small minority of visitors, not all of whom will be staying overnight. However, such things put pressure on council services, so it is only fair that local residents do not pick up the bill.
Tax is one way in which we all contribute to building a better world for our communities. I am proud that the Scottish Greens are honest about the need for a fairer tax system if we want better public services. We have already secured big changes, including raising income tax on the highest earners, raising tax on the purchase of second and holiday homes, doubling council tax on holiday homes and the increasing range of new local powers such as the visitor levy, the cruise ship levy to come and the infrastructure levy on big developers. By diversifying our tax base, we can empower communities to deliver on their local priorities and have real control.
There are a few themes from the evidence that I have heard during the progress of the bill that I would like to highlight. The first concerns the 18-month gap before a scheme can be introduced. The Convention of Scottish Local Authorities made it clear that that length of time is clearly disproportionate and excessive, so we need to reflect on that.
The second theme is the scope for spending the funds that will be raised. Many hospitality businesses in rural communities are struggling to fill vacancies, which are caused in large part by local housing shortages. During the committee’s debate on the matter at stage 2, the minister was clear that the funds that will be raised through the levy could be spent on housing and regeneration, both of which support the wider economy on which the tourism industry relies. It is vital that councils retain the flexibility to do that, so I remind the minister of his words to the effect that local authorities will want to use the funding in a way that best supports their local visitor economy. Such support could include relevant regeneration and, potentially, support for affordable housing projects.
The bill is just one of many measures that are required to empower local councils, but it is one that the Scottish Greens are proud to support.