Edinburgh City Council is considering a 5% tourist tax on overnight stays in hotels, bed and breakfasts, and holiday lets. The proposed levy aims to raise up to £50 million annually to invest in the city. The council will hold a remote meeting on Friday to discuss the plans. While the council leader emphasizes the benefits for the city and residents, the Federation of Small Businesses urges caution and a thorough planning process.
Tourists who spend the night in Edinburgh could be hit with a new tax from next summer under proposals being considered by the city council. Council members are weighing up a 5% levy on overnight stays at hotels, bed and breakfasts, and other accommodation, including holiday lets. A full council meeting scheduled for Friday will be held remotely due to a red weather warning in place for parts of Scotland.
Council leader Jane Meagher has previously hailed the levy as a 'once-in-a-lifetime opportunity' to invest in the city, with the potential to raise up to £50 million annually. This comes after Holyrood approved legislation last year allowing councils across Scotland to introduce such a charge. The proposed charge would apply to bookings made after 1 May this year for stays from 24 July next year. However, the Federation of Small Businesses (FSB) has cautioned councillors against a 'headlong rush' to be the first to implement the tax. Garry Clark, FSB's development manager for Edinburgh and the East of Scotland, stated: 'Edinburgh's small accommodation providers haven't yet been given all the information necessary to plan for the potential impact on them.' He added: 'It's not too late for the council to make the sensible decision to pause the scheme and plan properly for its smooth implementation, rather than engaging in a headlong rush to be the first to implement the levy.' Ms Meagher said last week she was 'focused on delivering a scheme that will be both fit for purpose and workable' and would also 'benefit our city, our residents and our visitors for many years to come'. The council leader asserted: 'At all stages of this process, we've listened to, and taken account of, the views of residents, industry and other stakeholders - and we mustn't lose sight of just how much positivity there is for the scheme across all of these groups.
Edinburgh Tourist Tax Accommodation Council Investment
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