SNP should be ‘ashamed’ of visitor levy rollout, says Tory MSP

A conservative MSP has said the SNP should be “ashamed” of the rollout of Scotland’s visitor levy.

The Tories had previously spoken out on Tuesday 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.

Addressing the chamber at the Scottish Parliament on Wednesday, Tory MSP for South Scotland Craig Hoy said the current handling of the visitor levy has descended into “chaos”.

He said: “The minister should be ashamed about the chaos into which … the SNP’s tourist tax has descended. Across Scotland, councils are presently consulting on the visitor levy and some on point of introducing it, and now huge uncertainty hangs over them.”

He urged the Scottish Government to put a pause on the implementation of the levy.

The minister for business and employment Richard Lochhead responded that the legislation is to enable local authorities to introduce the levies only if they wish to do so.

He said: “The Scottish Government does not impose this levy on any part of Scotland. We enable local authorities to take advantage of this legislation should they so wish tailored to local circumstances.”

Answering Mr Hoy’s original question about discussions the business minister has had regarding the impact of the visitor levy on the hotel and tourism sectors, Mr Lochhead said: “Some areas want greater flexibility, so we are exploring options as the chamber heard yesterday to extend powers allowing single or tiered flat-rate models in addition to the current percentage-based approach.”

On Wednesday, Argyll and Bute became the fifth Scottish council to stop developing plans for a local visitor levy due to concerns about the potential impact on the tourist economy.

Argyll and Bute joins Shetland, Orkney, Comhairle nan Eilean Siar and South Ayrshire in agreeing to stop developing visitor levy proposals.

Public finance minister Ivan McKee faced questions in Holyrood on Tuesday 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.

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.

UK Hospitality Scotland, which represents more than 8,000 venues across the country, urged other councils to follow Argyll and Bute’s lead.

Leon Thompson, executive director of the trade association, said: “The impact of a visitor levy on visitors and businesses is still unknown, so Argyll and Bute Council is right to rule out implementation of a visitor levy.

“Argyll and Bute’s consultation showed a majority of respondents did not support the levy and this is a clear example of a council listening and acting on concerns from local residents, businesses and trade associations like UKHospitality Scotland.

“There remain many questions about the visitor levy, from its economic impact to how it will be legislated in the future.

“There is now uncertainty about whether, or when, visitor levy legislation will be changed to allow the use of a flat rate fee.”