Fife’s council leader says giving local authorities the power to introduce a tourist tax is no substitute for proper funding.
In her programme for government, Nicola Sturgeon said councils would be able to introduce a local visitor levy on tourists staying overnight in their areas.
She said she hopes the tax will “give local authorities additional fiscal flexibility” and will help councils “fund activities related to tourism”.
However, one council leader in Courier Country said this cannot be instead of sustainable funding from the Scottish Government.
‘I don’t think it would be of much value’
Should the proposals go ahead, councils will be given the power in the 2022-23 financial year.
All funds made from this tourist tax will be kept by the local authorities to fund services and activities.
Fife council leader David Ross says it is “very unlikely” his council will introduce such a measure – calling instead for better core funding from the government.
“I don’t think it would be of much value,” he told us.
“We are not the same as big cities like Edinburgh which has thousands coming into the centre.”
He added: “There would be a risk it would discourage people coming into the small villages.”
‘We need sustainable funding’
Councillor Ross said authorities need better funding up-front.
The Labour councillor said: “I am all in favour of local authorities having the option and the choice to introduce measures such as this, but it is no substitution for basic core funding which has been cut over and over again.
“This will be a drop in the ocean for most local authorities.
“We need sustainable funding for services – we have been arguing that for years.
“I am sure we will consider the tourist tax, but it is very, very unlikely we would decide it is the right thing for Fife.”
Grant Laing, leader of Perth and Kinross Council, said: “Something might not suit us, but suits Edinburgh, so as long as this is not one-size-fits-all.”
In 2021 the then-SNP controlled Edinburgh City Council considered introducing a £2 tax per visitor per night and at the time it was estimated to have raised around £11 million a year.
Angus and Perth yet to make a decision
Councillor Laing said: “As a local authority we have been asking for freedom from the government to make our own decisions.
“But without seeing the outcome of it you can’t make a judgement.”
Beth Whiteside, leader of Angus Council, added: “We now the challenge to plug the budget gap will be huge, and at this stage we have to consider all options open to us.
“However no decisions have been made on the specific measures we will take.
“At the forefront of our decisions will be the understanding of the financial pressures that our residents and businesses are under, alongside the reality of delivering a balanced budget.”
Previous Angus council leader David Fairweather ruled out the possibility of introducing a tourist tax in the region.
Public Finance Minister Tom Arthur said the proposals would mean local authorities can raise money to fund local activities and services.
He said: “The Scottish Government will continue to work in partnership with all stakeholders, including councils, as the draft legislation is developed to create the levy.
“The levy is not intended to act as a substitute for local government funding or the annual budget process through which the local government settlement is determined.
“Decisions about the settlement will continue to be taken in consultation with Cosla leaders.”
Dundee City Council was also approached for comment.
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