D-Day for city's tourist tax plans
Plus: Bus lane cameras attacked; Rebus returns to BBC; and tax blow for short-term let operators
MSPs to set rules on how city spends tens of millions raised by visitor levy
The rules governing how Edinburgh can spend the proceeds of its tourist tax are to be decided tomorrow amid competing demands for control of the cash.
The Capital is expected to become the first local authority area in Scotland to introduce a visitor levy under legislation being steered through the Scottish Parliament. That is likely to raise £20-30m a year and MSPs are to decide what restrictions are place on how it is spent.
The levy is generally intended to support the city’s tourism industry - which directly employs 33,000 people - and mitigate some of the pressures created by more than four million visitors a year. Suggestions on how it could be spent range from support for the Festivals and marketing the city around the world to extra street cleaning in August and even towards a tram extension.
While council leader Cammy Day wants the maximum discretion for the city’s elected representatives to decide on local priorities, many in the industry want the funds to be clearly ring-fenced. Their concern is that the money ends up disappearing into a black hole to plug gaps caused by the inadequate funding of essential local government services.
What happens tomorrow? MSPs scrutinising the Visitor Levy (Scotland) Bill are due to decide the exact wording of the rules dictating what the funds can and can’t be spent on. Crucial suggestions include lifting some of the restrictions currently proposed, including one that (apparently inadvertently) prevents investment in business tourist facilities, such as the Edinburgh International Conference Centre.
Who benefits? Another proposal by Lothians MSP Sarah Boyack would lift a restriction saying funded projects must be “substantially” for the benefit of tourists, giving the council freedom to invest in facilities that will be used by tourists but have more benefit to city residents.
The council leader says: Labour council leader Cammy Day: “It should be for the council to decide. I've always spoken about it as supporting infrastructure for tourists in the city, promoting Edinburgh across the world and having a wider benefit for the city too.”
The industry says: Neil Ellis, chair of the Edinburgh Hotels Association, is calling for an oversight board, including representatives of the industry which pays the tax, to ensure projects “wholly benefit the visitor”. The association also wants a cap to protect against any future rises in the charge. “The UK is already one of the highest taxed destinations in Europe and we wouldn’t want to see that position made any worse.”
The public says: Nearly 4000 people took part in a council consultation which found widespread support for a levy of around 4-5%. Supporting culture and heritage in the city was the highest priority of those taking part, with the public also prioritising support for local services while business stressed the importance of supporting the sustainable development of tourism in the Capital.
Don’t miss tomorrow’s exclusive edition for paying members for an in-depth look at Edinburgh’s tourist tax plans.
YOUR EDINBURGH BRIEFING
REBUS RETURNS: A new BBC One series based on Sir Ian Rankin’s Inspector Rebus novels is to hit the small screen in the Spring. The six-parter, filmed in Edinburgh and Glasgow, sees Outlander star Richard Rankin step into the weary detective’s shoes previously filled by John Hannah and Ken Stott. Written by acclaimed Black Watch playwright, Gregory Burke it reimagines Rebus as a younger detective whose brother is drawn into the criminal world.
DAYTIME NIGHTCLUB: Too old to dance the night away? Help may be at hand. Line of Duty star Vicky McClure’s daytime nightclub - which offers the chance to dance the afternoon away and “make it home in time for dinner” - is coming to Edinburgh after selling out in cities across the UK. Day Fever, a daytime disco aimed at over-30s, comes to the O2 Academy on Sunday, 26 May, complete with DJ and party anthems.
BUS LANE CAMERAS ATTACKED: A third bus lane camera has been vandalised in as many weeks with a camera on Stenhouse Drive being sawed down. The attack follow similar ones at Murrayfield Gardens and South Gyle Broadway, Edinburgh Live reports.
LOW TRAFFIC REVERSAL: Low Traffic Neighbourhood measures are to be removed from some streets in Morningside despite warnings it will make the streets more dangerous for thousands of children walking and cycling to school. Planters blocking through traffic on Braid Avenue and Braid Road will be taken away, with a new £400,000 segregated cycle lane created along Braid Avenue and Hermitage Drive. The move was the most popular in a public consultation, but road safety campaigners Blackford Safe Routes said such filters blocking through traffic cut serious accidents by 50 per cent, making them “the only sensible option”.
LOW EMISSION ZONE: As preparations continue for the introduction of Edinburgh’s Low Emission Zone on 1 June, a new report has shown the dramatic impact of London’s Ultra Low Emission Zone on air quality. The Transport for London report showed roadside pollutants falling faster there than anywhere else in the UK, with deadly NO2 pollutants now lower than during lockdown.
‘COIN TOSS’ DECISION RE-RUN: A major planning application decided on the toss of a coin is to be re-run after Artisan Real Estate objected to the council’s “flawed” decision-making process. The decision increased the contribution demanded from the developer for building 256 low-carbon homes on Ferry Road from £1m to £3m. The application was decided by tossing a coin after councillors reached a stalemate.
TEA ROOMS RESTORED: The restoration of the 1920s Crawfords Tea Rooms on Hanover Street is expected to get the go-ahead this week as part of a new hotel development. RRH Hanover intends to convert the upper floors of five buildings on Princes Street, Hanover Street and Rose Street from shop storage space into a 61-bed luxury hotel. City planning officials are recommending councillors approve the plans, which are associated with plans for another 24 holiday apartments in office space on the upper floors 73-75 George Street, when they meet on Wednesday.
ARTISTS’ BOYCOTT: The Collective Gallery on Calton Hill has cut its ties with Baillie Gifford following a protest by artists over the fund managers’ investments in concrete and IT firms connected to the Israeli military. The gallery has said it will be be unable to continue its Satellites programme in its current form after it withdrew from the sponsorship after protests from all six artists involved, as revealed by the Edinburgh Minute.
THE BUSINESS
Another blow stuns short-term let businesses
Edinburgh’s beleaguered holiday let businesses faced another blow last week as the UK Budget delivered by Chancellor Jeremy Hunt delivered further bad news for short-term accommodation providers.
Already struggling under a new licensing and planning regime introduced by City of Edinburgh Council they view as unfair, and enabled by Scottish Government legislation, the sector was dismayed at the Chancellor’s decision to change the way they are taxed.
The sector was previously able to enjoy the same tax treatment as other businesses, but now must pay taxes on the same basis as landlords providing long-term let accommodation.
Referring to the UK Budget, the Association of Scotland’s Self-Caterers, said: “The abolition of the furnished holiday lettings (FHL) regime by the UK Government is the last thing the beleaguered and hard-pressed Scottish self-catering sector needs at the present time.
“The UK Chancellor’s Budget announcement on FHL spells yet more dispiriting news for a crucial component part of the Scottish tourism industry. Self-catering businesses should not be seen merely as a quick revenue source by the UK Government, but instead as a vital, valued and integral part of our vibrant tourist market.
“The sector provides huge economic benefits for local economies and local communities and must be supported by government rather than being used as a convenient scapegoat for wider failures in housing policy.”
The ASSC maintains that the UK Government would be much better placed easing the regulatory burden on long-term tenancies as opposed to penalising the holiday let sector. The change is due to come into operation in April 2025.
WATER WIN: Business Stream, part of Scottish Water, has won a £240 million Scottish Government contract to continue providing water services, including waste-water, to Scotland’s public sector organisations including all 32 local authorities, NHS Scotland, Scottish Fire & Rescue, Police Scotland, the Scottish Prison Service, universities and colleges and the Scottish Government.
WOBBLE GROWTH: A University of Edinburgh spin out, Wobble Genomics, has raised £8.5 million to help commercialise its novel approach to genetic sequencing which could revolutionise areas of the fast-growing biotech sector. The company developed a way to detect previously invisible 'full length' RNA, which is present in all living cells like DNA. The technology could have applications from drug development and research to agriculture and ecology.
THAT’S ENTERTAINMENT
FIVE STAR BOYCE: The Fruitmarket gallery is celebrating its 50th birthday in style with an exhibition of work by the Glasgow-based Turner Prize winner Martin Boyce. Before Behind Between Above Below has been receiving five star reviews including this one in The Guardian. The exhibition is free to enter and runs daily, 11am-6pm, until 9 June.
DOUBLE POETRY: These prize-winning poets will make you laugh and possibly cry as they read from their latest works, entitled Lobster and other things I’ve learned to love (Sunday Times best-selling author Hollie McNish) and The Cat Prince and Boy Friends (Michael Pederson whose fans include Stephen Fry and Irvine Welsh). Expect adult content and beautifully crafted verse in Hollie McNish: The Lobster Tour with Michael Pederson at the Queen’s Hall, on Wednesday, at 8pm.
POP UP ART: Following the success of its A Closer Look exhibition in September, Leith’s Out of the Blue Drill Hall is staging a Spring Pop Up Sale featuring the work of its resident Drill Hall Artists, from prints and greetings cards to jewellery and clothing. Runs until Friday.
BOOK NOW FOR… The Edinburgh International Festival. Early booking is more important than ever as the Festival has introduced dynamic pricing for the first time, so the price of the most popular tickets will rise with the Festival using the extra funds to help support a wider range of free and discounted tickets. Among the highlights this August will be five spectacular operas including Scottish Opera’s staging of Oedipus Rex, complete with a 100-strong community choir, at the Royal Museum of Scotland. Slow Horses star Jack Lowden will star in the world premiere of The Fifth Step by acclaimed playwright David Ireland at the Lyceum, while Olivier Award-winning playwright Stef Smith’s stage adaptation of Amy Liptrot’s bestselling memoir, The Outrun, directed by Vicky Featherstone, debuts at the Church Hill Theatre. One of the world’s most influential choreographers Crystal Pite brings her new work Assembly Hall, combining Arthurian cosplay and contemporary dance, to the Festival Theatre.
QUICK BITES
PIECE OF CAKE: Cake Box has opened its first Edinburgh branch on Gorgie Road. The doors opened on Sunday at 360-362 Gorgie Road where customers can buy freshly baked “occasion” cakes as well as cupcakes and desserts. The company has three branches already in Glasgow, as well as down south.
PASTA OPENING: Pasta restaurant Ragu is to open at 92 George Street, previously occupied by retailer Xile which closed recently. The restaurant company said on social media that the space will be opening for guests in April.