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The Herald Scotland
3 days ago
- Business
- The Herald Scotland
Tourism chiefs tetchy as Edinburgh visitor levy nears
The Edinburgh tax will see a 5% fee applied to the cost of an overnight stay in the capital, capped at five nights in a row. Accommodation providers will be required to begin advertising the rate in October for stays starting from July 24 next year – slap bang in the middle of the 2026 summer tourist season. However, FSB development manager for east Scotland Garry Clark said there remain 'many unanswered questions about how it will operate'. He said: 'One thing concerning our members is that there is so much to do and little visible of sign progress in the last six months. To take just one example, they are still to see the payment platform which is being built especially for them to transfer to the local authority the levy funds they collect from visitors. 'Now, with just a year to go, the clock is ticking ever louder. It is a sign of just how worried they are that they are taking time out at one of their busiest times of year to raise the issue. 'It would go a long way to reassure the city's accommodation providers if the council takes steps now to provide these businesses with a detailed roadmap containing specific information on what they need to do and when, in order to ensure that preparations for the visitor levy run smoothly.' Read more: The FSB is not alone in highlighting concern. Shortly before its intervention, groups representing a wide range of the accommodation providers warned the current timeline 'places unnecessary and avoidable strain on the sector'. 'With less than three months remaining before accommodation providers must begin displaying levy-inclusive pricing, there is still no practical or technical guidance from the council or VisitScotland, despite assurances this would be received like the guidance that was published for local authorities back in October 2024,' said tourism industry groups in a letter to the leader of City of Edinburgh Council, Jane Meagher. 'While the levy may appear simple, its application is complex - particularly given the intricacies of accommodation pricing and booking systems. These challenges have been clearly communicated to the Scottish Government, VisitScotland, and the council and are at the heart of why guidance is imperative ahead of implementation. With no guidance, there can be no successful implementation.' Given the importance of tourism to Edinburgh and Scotland as a whole, it is to be hoped that City of Edinburgh Council is putting the finishing touches to the guidance, and is able to provide some much-needed reassurance to the industry soon. Elsewhere last week, the issue of the 'Scottish visa' returned to public discourse. As revealed by The Herald, a major survey of more than 500 businesses in Scotland found 70% are supportive of a Scottish visa to allow some migrants to come to work in Scotland to help ease skill shortages, as long as they live in the country and maintain a Scottish tax code. The latest Understanding Business survey, conducted by 56° North and Diffley Partnership, suggested Scottish employers are interested in a more flexible, regionally responsive immigration policy, particularly in light of workforce shortages and general economic pressures. Given the growing popularity of Reform among parts of the electorate, John Penman, managing partner at 56° North, suggested immigration could becoming a 'recurring theme' in the run-up to next year's election for the Scottish Parliament. Meanwhile, The Herald also revealed this week that the sale of a well-known building in the west end of Glasgow, formerly occupied by a charity that provided residential care for more than 200 years, has been sold, resulting in a £1 million windfall for a range of charities. Balmanno House, located on the corner of Great Western Road and Cleveden Road, fell into administration in April 2023 after facing "severe and unsustainable cash flow problems'. Now, following 'considerable' interest from prospective buyers, the building has been sold for residential development for an undisclosed sum. Blair Milne, head of restructuring and insolvency at Azets in Scotland, said: 'It gives me great pleasure to see such a substantial sum being made available for distribution to charity. It is very rare for all creditors to receive full repayment together with interest from any insolvency process, let alone such a substantial sum being made available to charities.'
The Herald Scotland
21-07-2025
- Business
- The Herald Scotland
Major survey reveals 'standout' view on 'Scottish visa'
The latest Understanding Business survey, conducted by 56° North and Diffley Partnership, found 70% of companies are supportive of a Scottish visa to allow some migrants to come to work in Scotland, as long as they live in the country and maintain a Scottish tax code. A slightly smaller number, 68%, believe migration is vital for filling critical skills shortages in Scotland and that the Scottish Government should have power to control the migration of workers. However, respondents to the survey were conscious of the impact of migration on the local workforce, and the need for joined-up thinking on devolution of migration and UK-wide immigration policy. Scottish businesses groups, notably those representing the hospitality and tourism sectors, have regularly voiced concern over skills shortages since Brexit, which ended the free movement of people between the UK and countries within the European Union. There have been calls by the [[Scottish Government]] in recent years for the introduction of a Scottish immigration visa system to help attract workers to Scotland, but they have been resisted by the UK Government, which controls immigration policy. However, it appears the issue is not going away. The latest Understanding Business survey suggests Scottish employers are interested in a more flexible, regionally responsive immigration policy, particularly in light of workforce shortages and general economic pressures. The proposed visa would be designed to meet the needs of the Scottish labour market and population requirements which can differ from those in other parts of the UK. Only 17% of respondents said they opposed the idea of a Scottish visa, while the remaining 14% were neutral or unsure. The survey authors said the relatively low level of opposition suggests there is broad recognition among employers of the economic and demographic benefits of such a scheme. The proposed Scottish visa would allow migrants to work and pay tax in Scotland, while being required to live in the country. This would reflect immigration models used in countries such as Canada and Australia. The support shown towards a Scottish visa came as businesses indicated a degree of confidence about the economic outlook. A plurality of expect turnover (47%) and profitability (44%) to increase over the next 12 months, record highs for the survey series, followed closely by those that think their turnover or profitability will remain the same in the next year, at 41% and 39%. Around half (48%) believe general economic conditions are worse than a year ago, and 41% expect that conditions will continue to deteriorate over the next year. But a growing proportion expressed the view that the general economy is better now than a year ago (30%) or will improve over the next year (35%), up seven and 10 percentage points respectively. Well over half of Scottish businesses said they were more concerned about tax (56%) and inflation (55%) than they were three months ago, although these proportions witnessed small declines of three and four percentage points respectively. Meanwhile, there were encouraging findings for government ministers who are often accused of being out of touch with business. More businesses agreed that the Scottish and UK Governments are concerned with the needs of Scottish business and taking action to address them. Agreement that the UK Government is concerned with the needs of Scottish business is 'notably lower' compared with the perception of the Scottish Government on this front, at two in five (40%) compared to over half (53%). However, both have risen considerably since the last survey wave, up seven and five percentage points. A smaller gap was apparent when considering if both governments are taking action to address Scottish business concerns. Mark Diffley, founder and director at Diffley Partnership said: 'The standout data point this quarter is the significant business support for the introduction of a Scottish visa for workers, backed by seven in 10 business, up to 75% of those with an opinion either way on the issues. 'Combined with other positive views about the impact of migration on the labour force and the economy, this should give political parties food for thought ahead of next year's election. 'Meanwhile, although the business community in Scotland is still rather more pessimistic than optimistic, the gap between the two has closed which gives some hope about the possibility of a more positive outlook ahead after a long, tough period for businesses.' John Penman, managing partner at 56° North said: 'Our last survey showed Reform, which is the most vocal party in terms of restricting immigration, were gaining support among business in Scotland, however these results show that many businesses are in favour of bringing skilled migrants into the Scottish workforce. 'Reform's continued strong showing in the polls may well mean this becomes a recurring theme in the run up to next year's Scottish election as parties seek to position themselves as best for economic growth.' Understanding Business surveyed more than 500 Scottish businesses across a range of sectors, including hospitality, agriculture, construction, and manufacturing.
