SNP accused of 'complete and utter shambles' over tourist tax U-turn
Ivan McKee’s apparent U-turn has been labelled the “actions of a clapped-out SNP government who have refused to listen to concerns” over the tourist tax.
SNP ministers have been branded a “complete and utter shambles” after appearing to U-turn over allowing greater flexibility for councils to set the rate of a tourist tax.
The Scottish Government has been under pressure to relax the prescriptive percentage-based charge for local authorities wishing to introduce a visitor levy.
Authorities in Edinburgh and Glasgow have agreed a 5 per cent rate, which is also under consideration in the Highlands. Aberdeen City Council has agreed a 7 per cent levy on overnight stays.
Amid the pressure, on Friday, SNP public finance minister Ivan McKee told Holyrood’s economy and fair work committee the Government had acknowledged “some areas of Scotland are seeking greater flexibility in how the levy is applied and administered”.
He said: “Consequently, we are now actively extending powers to local authorities, including the option to introduce a single flat rate or tiered flat rate model alongside the existing percentage-based approach.”
But in a subsequent letter, sent by Mr McKee on Monday, the minister had downgraded the pledge from “actively extending powers to local authorities” to “actively considering extending powers to local authorities”.
Speaking in Holyrood, Mc McKee confessed “a typographical error” had taken place where “one misplaced word” had occurred - a mistake that took ministers four days to notice and rectify.
He stressed that the Scottish Government has “no principle objection” to allowing councils to set a percentage or tiered rate and was looking for a “legislative vehicle” to make the changes.
But Mr McKee stressed that due to a lack of time before the Holyrood election and a busy Holyrood schedule, it would "realistically" be “after May next year” before the changes could be made.
Scottish Conservative business, economy, tourism and culture spokesperson Murdo Fraser said: “This is a complete and utter shambles from the SNP.
“It looked as though they had finally listened to the calls from the Scottish Conservatives and the industry to give councils more flexibility over the visitor levy by allowing them to set a flat rate. Within a matter of days, they have U-turned again.
“Ivan McKee owes businesses and councils an urgent explanation. This is the actions of a clapped-out SNP Government who have refused to listen to concerns over the levy from the start and now don’t know whether they’re coming or going.”
READ MORE: Aberdeen 'gambles' as it approves Scotland's highest tourist tax - bigger than Edinburgh or Glasgow
Mr Fraser added: “Scotland’s tourism sector and our local authorities deserve better than this chaos. Jobs rely on any changes to this policy being communicated clearly, but instead the minister has directly contradicted himself in the space of two letters.
“I have now submitted an urgent question to hopefully force the SNP minister to come to Parliament and explain why this has happened and give the industry clarity over whether this power will be available to councils or not.”
Scottish Labour economy spokesperson, Daniel Johnson, said: “Once again this chaotic SNP government seems to be making it up as it goes along.
“Businesses and local authorities are being kept in the dark while the SNP scrambles to get its position straight.
“The SNP must set out clearly what it is planning and ensure that the visitor levy works for local communities and for Scotland’s world-class tourism industry.”
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