Business

SNP accused of ‘complete and utter shambles’ over tourist tax U-turn

By David Bol

Copyright scotsman

SNP accused of 'complete and utter shambles' over tourist tax U-turn

SNP ministers have been branded a “complete and utter shambles” after appearing to U-turn over allowing greater flexibility for councils to set the rate of a tourist tax. The Scottish Government has been under pressure to relax the prescriptive percentage-based charge for local authorities wishing to introduce a visitor levy. Authorities in Edinburgh and Glasgow have agreed a 5 per cent rate, which is also under consideration in the Highlands. Aberdeen City Council has agreed a 7 per cent levy on overnight stays. Amid the pressure, on Friday, SNP public finance minister Ivan McKee told Holyrood’s economy and fair work committee the Government had acknowledged “some areas of Scotland are seeking greater flexibility in how the levy is applied and administered”. He said: “Consequently, we are now actively extending powers to local authorities, including the option to introduce a single flat rate or tiered flat rate model alongside the existing percentage-based approach.” READ MORE: Push to delay introduction of Edinburgh tourist tax thrown out But in a subsequent letter, sent by Mr McKee on Monday, the minister had downgraded the pledge from “actively extending powers to local authorities” to “actively considering extending powers to local authorities”. Scottish Conservative business, economy, tourism and culture spokesperson Murdo Fraser said: “This is a complete and utter shambles from the SNP. “It looked as though they had finally listened to the calls from the Scottish Conservatives and the industry to give councils more flexibility over the visitor levy by allowing them to set a flat rate. Within a matter of days, they have U-turned again. “Ivan McKee owes businesses and councils an urgent explanation. This is the actions of a clapped-out SNP Government who have refused to listen to concerns over the levy from the start and now don’t know whether they’re coming or going.” READ MORE: Aberdeen ‘gambles’ as it approves Scotland’s highest tourist tax – bigger than Edinburgh or Glasgow Mr Fraser added: “Scotland’s tourism sector and our local authorities deserve better than this chaos. Jobs rely on any changes to this policy being communicated clearly, but instead the minister has directly contradicted himself in the space of two letters. “I have now submitted an urgent question to hopefully force the SNP minister to come to Parliament and explain why this has happened and give the industry clarity over whether this power will be available to councils or not.”