Committee
Local Government, Housing and Planning Committee 12 March 2024
12 Mar 2024 · S6 · Local Government, Housing and Planning Committee
Item of business
Visitor Levy (Scotland) Bill: Stage 2
Before I focus on the amendments related to funding, I will make some general points on that issue. In developing the proposals in the bill, the Government consulted and engaged with local authorities and the tourism industry. It was and is the very clear position of the tourism industry that funds raised by a visitor levy should be invested in the visitor economy. The bill therefore will ensure that that is the case, by putting in place a measure to give local authorities the freedom to use the funding that is raised as they believe appropriate to support the visitor economy in their areas. The current wording in the bill has been carefully crafted to mean that the use of net funding raised by a visitor levy shall be spent on facilities and services with a strong connection to the visitor economy. If there are things linked to the visitor economy that members believe the current wording would preclude a local authority from funding, I am open to constructive suggestions from the committee or other members on how to address that, and I would be happy to consider refining the wording as necessary ahead of stage 3. It will be for a local authority, following consultation with local communities, tourism businesses and local tourist organisations, to decide how the funding that is raised by a visitor levy is spent. Local authorities will want to use the funding in a way that best supports their local visitor economy. I am aware that those needs will differ across the country—ranging from improving street dressing to supporting work to promote a destination, investing in relevant regeneration and, potentially, supporting affordable housing projects, recognising that tourism businesses can struggle to retain and recruit staff due to accommodation issues, as part of the wider pressures on local housing markets. I should make it clear that it will not be for the Government to permit or exclude any particular use of the funding. Within the broad parameters in the bill, that is rightly a decision that will be made at a local level, after local consultation. This is an area that I would expect the national guidance that is currently being developed by local government and the tourism industry—and that is to be given a statutory basis under amendment 15—to address. In that context, I now turn to amendments 20 and 24 from Sarah Boyack. They relate to the objectives that a local authority sets for a visitor levy scheme, under section 12, and the use to which the funding raised by a visitor levy can be put, under section 17. The Government’s position is that funding raised by a visitor levy should be used on facilities and services that have a clear link to the visitor economy. The wording in section 12 requires scheme objectives to “relate to developing, supporting or sustaining facilities or services which are substantially for or used” by visitors. Section 17 requires scheme proceeds to be used to further those objectives or otherwise to be used for “facilities and services which are substantially” for visitors. As I outlined earlier, I am open to constructive suggestions from members if the current wording in the bill would preclude a local authority from funding something related to the visitor economy. However, the Scottish Government believes that simply removing the word “substantially” would weaken that aspect of the bill. It is there to ensure that there is a clear link to the visitor economy in respect of the use of revenue that is raised from a visitor levy. That has been a consistent ask of the tourism organisations and the accommodation providers that would collect and remit any visitor levy. On that basis, I ask Sarah Boyack not to press amendment 20 or move amendment 24.
In the same item of business
The Convener
Green
The next item on our agenda is stage 2 of the Visitor Levy (Scotland) Bill. We are joined by the Minister for Community Wealth and Public Finance, Tom Arthur...
The Convener
Green
Amendment 26, in the name of Miles Briggs, is grouped with amendments 18, 1 and 2.
Miles Briggs (Lothian) (Con)
Con
Amendment 26 seeks to remove camping sites and caravan parks from the bill. During scrutiny of the bill, it has become quite clear that, rather than a visit...
Stuart McMillan (Greenock and Inverclyde) (SNP)
SNP
At its introduction, the bill included boat moorings and berthings as types of accommodation that are to be covered by a visitor levy. That led to concern in...
Liam McArthur (Orkney Islands) (LD)
LD
Unlike Miles Briggs and Stuart McMillan, who are trying to crowbar certain visitors out of the bill, I am trying to shoehorn some visitors into it. It is wor...
The Convener
Green
I will speak to Liam McArthur’s amendments 1 and 2. I appreciate that he has recognised that those amendments are not the basis for how such provisions might...
Liam McArthur
LD
I absolutely understand the complexity of applying the levy to motorhomes. To go back to my earlier point about flexibility, there would at least be an oppor...
The Convener
Green
My point is about how to make that workable across the board, because there is also the issue of the impact on mainland local authorities. That should be loo...
The Minister for Community Wealth and Public Finance (Tom Arthur)
SNP
Good morning. The amendments in the group all relate to the meaning of the term “overnight accommodation” in the bill, which takes a broad approach to the ty...
Liam McArthur
LD
I am grateful to the minister not only for those comments, but for the engagement that we have had previously. On the timing, there is a risk that, if one ...
Tom Arthur
SNP
With regard to the engagement that we have had with COSLA, as I touched on, we received a formal proposal from it only last week. I am conscious of the appet...
The Convener
Green
Minister, before you go on, I want to bring in Stuart McMillan.
Stuart McMillan
SNP
What you have just said is extremely helpful, minister. You are aware of my interest in a cruise ship levy. I know that it is early in the process, but are y...
Tom Arthur
SNP
Given the significance of creating a new levy power, it would be appropriate to introduce a cruise ship levy through primary legislation, as we are doing wit...
The Convener
Green
I am sorry, but I will bring in Mark Griffin, after which we will move on.
Mark Griffin (Central Scotland) (Lab)
Lab
I seek clarification on a cruise ship levy. If there is not enough time to insert such a levy into the Visitor Levy (Scotland) Bill and it is introduced via ...
Tom Arthur
SNP
Although a cruise ship levy is related to some of the policy intent and motivation behind the visitor levy, it is distinct, so we would have to consider that...
Daniel Johnson (Edinburgh Southern) (Lab)
Lab
Will the minister give way?
Tom Arthur
SNP
I am happy to do so.
Daniel Johnson
Lab
I want to highlight two brief points. First, I recognise the issue of motorhomes, but a basic principle is that it is not always possible to tell who is stay...
Tom Arthur
SNP
I think that you mentioned moorings and berthings. Vessels that can provide residential accommodation that are permanently or primarily situated in one place...
Liam McArthur
LD
I am encouraged by what you have said about your openness to discussing the issue. As I raised with the convener, there is an opportunity for island authorit...
Tom Arthur
SNP
In principle, I would want to take an approach that recognises that our island communities are unique and have distinct needs and assets, just as, more broad...
The Convener
Green
I call Miles Briggs to wind up and to press or withdraw amendment 26.
Miles Briggs
Con
The same principles apply to private caravans as apply to Stuart McMillan’s mooring amendment. Not having a definition of “overnight accommodation” is at the...
Tom Arthur
SNP
I reiterate that, on any aspect of the bill, if there are concerns about definition and about whether the bill will ensure that the policy intent is met, I a...
Miles Briggs
Con
Thank you. With that in mind, I will not press amendment 26. I hope to take up the minister’s offer to have a conversation on the matter before stage 3. Ame...
The Convener
Green
I call amendment 1, in the name of Liam McArthur, and ask Mr McArthur to say whether he wishes to move or not move the amendment.
Liam McArthur
LD
In the hope of working with the minister to see whether there are ways forward, either in relation to camper vans or cruise traffic, I will not move amendmen...
The Convener
Green
Amendment 3, in the name of Pam Gosal, is grouped with amendments 5, 38, 39, 42, 11 and 16.