Tories demand pause on visitor levy as Government accused of ‘omnishambles’

Ministers are being urged to impose a moratorium on councils introducing a charge on overnight stays, amid what the Conservatives branded an “embarrassing omnishambles” over the visitor levy.

The Tories hit out after public finance minister Ivan McKee said the Scottish Government is considering changing the rules for the scheme so councils can charge a flat-rate fee.

But he told MSPs “realistically” it might not be possible to make the change until after May’s Holyrood election.

Mr McKee faced questions in Holyrood after announcing in a letter on Friday that ministers were “actively extending powers” to councils which would give them the option to introduce a flat-rate charge.

However a “typographical error” meant the word “considering” was not included in that.

Tory tourism spokesman Murdo Fraser branded the omission “an absolute shambles from this Government”.

Noting that local authorities across Scotland are “actively considering” if they should bring in a charge on overnight stays in their areas, the Tory said councillors could not “take a final decision on what they are going to do if they don’t know when they are going to be given these powers, or if at all”.

Mr Fraser went on: “What we now need is a moratorium on any councils introducing a visitor levy until this shambles is sorted out.”

He was backed in this call by Scottish Conservative deputy leader Rachael Hamilton, who branded the current visitor levy scheme “botched” and “unworkable”.

Demanding action from Mr McKee, she asked him: “Will you call a moratorium on this ridiculous scheme?”

The minister said there is “no barrier” to councils bringing in a levy on overnight stays, based on a percentage cost of the accommodation.

Holyrood passed legislation in 2024 allowing for such a charge to be applied on stays in hotels, self-catering properties and other forms of accommodation.

Authorities including the City of Edinburgh Council and Glasgow City Council are already planning to bring in a charge, with both proposing a 5% fee.

Mr McKee said some councils want the flexibility to introduce a flat-rate charge.

While he said the Government is “minded” to make that possible, doing so requires a change in the law, so a “suitable legislative vehicle” now has to be found.

Mr McKee told Holyrood the current business programme in the run-up to next year’s election is “extremely busy”, adding: “Finding a slot for this is very difficult.”

He added ministers have “committed to consider taking that forward, should we be in government, early in the next session”.