Chamber and committees

Good morning. My question is on VAT. Last week, witnesses told us that although many European markets have levies in place, they do not have our levels of VAT. A new levy in Scotland would be in addition to VAT, whereas in 25 EU countries, a discounted VAT is applied. Do you have any thoughts on that? How might it impact on the competitiveness of Scotland’s tourism industry?

I will put that question to Argyll and Bute and Edinburgh councils, because they have a lot of small businesses.

My question is on the issue that my colleague Ivan McKee has just spoken about. We have been talking about simplifying the process and helping microbusinesses and small businesses, and you have spoken about how they calculate. Would you be open to discussions about a flat rate with a nationally set cap?

Given the administrative burden that this scheme will have on businesses, and its cost, some wish for consideration to be given to enabling providers to retain or claim a proportion of the levy to manage administration of it. Are there any instances in Europe of businesses using the proceeds from tourist taxes to offset expenses associated with collecting, remitting and reporting levies?

Could you, please, because that is quite important?

Good morning, panel. My question will probe a little bit more. Jamie Baker spoke about microbusinesses and small businesses. We heard last week from the small accommodation and self-catering sector about the increasingly high costs of doing business in Scotland, with one witness saying:

“we are shrinking the sector and then taxing it on top of that.”—[Official Report, Local Government, Housing and Planning Committee, 24 October 2023; c 5.]

Are you concerned that the visitor levy could lead to small businesses and microbusinesses in your local authority closing their doors for good? What impact assessment have you done on the negative impact of the visitor levy on small businesses and microbusinesses?

Thank you, convener. I want to touch on spending the money. Accommodation providers will become, as one witness described, unpaid tax collectors for local authorities as well as facing additional administrative burdens. Do you agree with many people in the sector that levy revenue should be ring fenced for tourism-related spend? How do you foresee that working in practice? I aim that at Paul Lawrence, first.

With the cost of doing business in Scotland being quite high—due to business rates, VAT, which you mentioned, regulations on short-term lets and many other issues—is this extra cost on businesses justified?

In 2018, the Convention of Scottish Local Authorities called for a tax on visitors and not on businesses. It seems as if the bill will have a substantial impact on businesses—in particular, the small business and microbusinesses that you have spoken about today. What is your view on whether it will be a tax on visitors and not on businesses?

Good morning. You have mentioned higher taxes and VAT. Given the high costs of doing business in Scotland, business rates, regulations on short-term lets and many other issues, do you think that the extra cost on business is justified?