Army of B&B owners go to court in battle to overturn the SNP’s ‘despised’ tourist tax
AN army of B&B and guesthouse owners has launched a legal challenge to the SNP’s contentious new rules for short-term lets.
Ministers are introducing a regulatory system that will require anyone wishing to rent out a property – from a spare bedroom to a castle – to apply for and buy a licence.
Claiming that the ‘oppressive’ and ‘unreasonable’ legislation could destroy the livelihoods of thousands of businesses and households, a group has launched a judicial review, which is due to be heard in May.
Although the licensing scheme is SNP Government policy, each of the 32 local authorities has responsibility for enforcing the legislation as they see it. This has led to claims of small businesses facing differing approaches and a mountain of red tape.
The group behind the challenge has lodged a petition against City of Edinburgh Council, citing problems with the way the legisla
‘We have 500 backers and the number is growing’
tion is being implemented in the capital. Having sparked chaos in the sector, the SNP in December announced a six-month delay to the requirement for licences for existing businesses, which must now apply for one by October 1.
However, critics of the scheme have called for a rethink. They say that in many cases thousands of pounds has to be spent before a business, often a small, singlepremises operator, can even get to the point of applying for a licence – which may then be rejected.
Fiona Campbell, chief executive of the Association of Scotland’s Self-Caterers, said: ‘From exorbitant fees, to conflating licensing and planning regimes, these regulations are a runaway train that the Scottish Government desperately needs to get back on track.’
The Scottish Mail on Sunday told previously of concerns in Edinburgh that the scheme posed an ‘existential threat’ to the city’s International Festival and Fringe.
A legal fighting fund set up by the group behind the action at the Court of Session had last week surged past £190,000 in donations, with more than £50,000 pledged in the past fortnight alone.
The group wants to raise £300,000 to have sufficient funds to see the case to a conclusion. It has stated that, on victory, funds would be returned to all major donors.
By yesterday, more than 540 individuals had pledged a total of £195,000 towards the cause, figures which organisers said demonstrated the ‘strength of feeling’ on the issue.
One of the group behind the challenge, Ralph Averbuch, who runs three self-catering flats in Edinburgh, said: ‘It’s been a huge boost to know we have over 500 backers and the number is growing. Justice may come at a price but we must pursue it whilst we still have the chance to save our sector.’
It is understood the group will argue the council’s policy is ‘not proportionate’ and ‘oppressive’.
City of Edinburgh Council said it ‘will not be commenting further on this live legal action’. A spokesman for the Scottish Government said regulation of short-term lets ‘is vital to address safety concerns and to balance the needs and concerns of local communities with the economic and tourism benefits of short-term lets’.