Holidays in Scotland to cost more as SNP launches ‘sleepover tax’

HUMZA YOUSAF’S Government has unveiled plans for a sleepover tax for anyone staying in Scotland in tourist accommodation.

The Visitor Levy (Scotland) Bill would give councils the power to impose a tax on stays in any form of overnight accommodation, including hotels, bed-andbreakfasts, private rentals and tents or caravans on camping sites. Local authorities would set a levy based on a fixed percentage of the cost of the accommodation, with hoteliers and other providers liable to pay the sum. However, they would pass on the cost to their guests.

SNP ministers pressed ahead with the tax despite opposition from 63 per cent of organisations that responded to a public consultation on the plan.

Craig Mackinlay, Tory MP for South Thanet, said: “Tourist taxes are quite common internationally and generally pitched at modest levels to be an annoyance rather than a deterrent but the SNP’S new sleepover tax shows desperation to raise a few pounds.

“It sends all the wrong signals to tourists [and] will be England, Wales and Northern Ireland’s gain but, saying that, Labour-run Wales will probably copy under their usual anti-business agenda.”

A Tory source said: “The Scottish Government’s new levy will send visitors from all corners of Britain packing. Towns and cities in Scotland deserve top-rate local services, but slapping another tax on tourists threatens to do more harm than good. The SNP should stop tapping up tourists to plug their £1 billion spending gap.”

The move was welcomed by the Labour-run council in Edinburgh, Scotland’s top destination. A levy there could generate £15 million per year.

The SNP leader of the council covering the Scottish Highlands, another hugely popular visitors’ attraction, said he was planning to introduce the levy.

Funds raised would be ring-fenced for spending on facilities and services that are “substantially for or used by persons visiting the local authority’s area for leisure purposes”, according to explanatory notes published alongside the Bill.

The tax would also apply to people visiting Scotland for business or anyone who already lives there, but was staying overnight in another part of the country. Cabins on a ferry, cruise ship or sleeper train would also not be liable for the tax if they are “undertaking a journey involving one or more overnight stops.” However, it would be chargeable on the overnight parking of a campervan at a campsite or the mooring of a yacht.

Councils would have the power to introduce exemptions but the only specific examples mentioned in the notes were registered gypsy and traveller sites or a patient having to stay overnight in hotel accommodation to attend a hospital appointment.

Tom Arthur, the SNP’S public finance minister, argued that the tax would give councils “additional resources to continue to attract visitors to Scotland”.

Unveiling the Bill, he said: “Levies on visitors staying in paid-for accommodation are already used around the world and it is reasonable for local areas to want a small contribution from tourists to help support and sustain visitor economies.” Under the proposals, councils would have to consult communities, businesses and tourism organisations in their area before introducing the charge and there would have to be an 18-month delay before it was imposed.

Different tax rates could be set for particular purposes or areas, meaning, for example, Edinburgh City Council could charge more during the city’s summer arts festivals.

Any accommodation provider who fails to pay the tax faces a fine.

‘This will do more harm than good. The SNP must stop tapping up tourists to plug a £1bn spending gap’