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Month: December 2021

Local Government Committee approves ‘arbitrary, irrational & draconian’ short-term let licensing plans

Posted on by Fiona Campbell

The Scottish Parliament’s Local Government, Housing and Planning Committee have today approved the Scottish Government’s plans to introduce short-term let licensing. The regulations will now head to plenary for a vote of all MSPs at a later date.

During their meeting, the Committee heard evidence from the Cabinet Secretary for Housing Shona Robison, accompanied by her officials, who took questions from MSPs. They was also joined by the former Cabinet Secretary for Tourism Fergus Ewing who raised a number of concerns relating to the licensing proposals.

Mr Ewing highlighted that the industry’s proposals for mandatory short-term let registration, just as with the Scottish Landlord Register, could include a fit and proper test – which the government maintained wasn’t the case when dismissing our exemption proposal. He also made valuable points in relation to the existing regulations faced by industry, anti-social behaviour powers that local councils needed to enforce, and the threat of judicial review arising from the licensing proposals.

Questions were also put on the following from other MSPs:

  • The data underpinning the Scottish Government’s plans.
  • Whether overprovision powers could be brought back at a later date.
  • Why a mandatory registration scheme had been rejected in favour of licensing.
  • The costs to local authorities arising from licensing, specifically the differences in the level of fees estimated in the Scottish Government’s BRIA and those from SOLAR.
  • If the Scottish Government had considered piloting their regulations, or giving local councils full powers to determine whether licensing was appropriate for their area.
  • The costs to business from licensing and compliance costs – and if many businesses would close as a result.
  • The views of Police Scotland on short-term let licensing and the anti-social behaviour powers already available to local councils in respect of holiday lets.
  • The Scottish Government’s planned review of licensing in 2023.

After the Committee discussion, the licensing plans were approved by five votes to two.

You can view a recording of the evidence session and vote here: https://www.scottishparliament.tv/meeting/local-government-housing-and-planning-committee-december-21-2021

In response to today’s development, the ASSC have issued the following comment.

Fiona Campbell, Chief Executive of the Association of Scotland’s Self-Caterers, said:

“The ASSC is naturally disappointed that the Committee has agreed to the revised Licensing Order. This is despite the strength of opposition highlighted in their recent survey, not to mention widespread concern from tourism, business and local authority stakeholder responses in the Scottish Government’s third consultation exercise on the issue.

We maintain that the Scottish Government’s regulations were unfit for purpose when withdrawn in February 2021 and remain so in December 2021, largely as industry and expert insight has been dismissed. Make no mistake, they will damage the Scottish tourism industry – which is still in survival mode – and will burden local councils at a time they can least afford it.

It also comes at the worst possible time for self-caterers and B&B owners who face an uncertain future with the challenges associated with Covid-19. Policymakers need to take these circumstances into account and support small and micro businesses through this and minimise the burden.

We endorse the views expressed at the Committee by the former Cabinet Secretary for Tourism Fergus Ewing on the merits of a mandatory registration scheme, which contrary to the position of the Scottish Government, could include a fit and proper person test. Mr Ewing also raised the valuable economic contribution made by the industry but that many operators will now fear their business being confiscated through the draconian powers made available to local councils and the risk of judicial review therein.

These regulations are, in the words of the former Cabinet Secretary, ‘arbitrary, irrational & draconian’, and it is not too late for the Scottish Government to think again. With the regulations now heading to a vote in plenary, we would therefore strongly encourage all MSPs to back small business and protect livelihoods in Scotland’s £867m self-catering industry by rejecting these ill-timed and onerous plans.”

 

https://www.heraldscotland.com/politics/19800535.snp-msp-fergus-ewing-labels-governments-airbnb-crackdown-plans-draconian/

Letter to the First Minister

Posted on by Melanie Allen

Today, the following letter was sent to the First Minister:

20th December 2021

Dear First Minister,

THE SCOTTISH GOVERNMENT’S SHORT-TERM LET LICENSING SCHEME

These are challenging times for our country – for individuals, families, society, and the economy. As you appreciate, the Scottish tourism sector has been particularly badly affected by the pandemic. In recent days, the tourism accommodation sector has experienced widespread cancellations as a consequence of government announcements. Our industry has done all we can to support the Scottish Government throughout the pandemic – but so many of our businesses are now in survival mode.

While there will always be circumstances beyond the government’s control, there are options we can take – working collaboratively in this endeavour – which can ease the burden for those under pressure. Changing short-term let regulation can and will make a major and lasting difference to thousands of legitimate small and micro businesses throughout Scotland.

That is why we collectively welcomed the withdrawal of the Scottish Government’s short-term let licensing regulations in February 2021 as they were widely recognised as not fit for purpose. Sadly, the revised regulations remain unfit for purpose in December 2021 and come at the worst possible time. Even in the pre-Covid trading environment, a licensing scheme along the lines envisaged would pose major difficulties. But given the ongoing impact of the pandemic, with Scotland facing “a tsunami” of omicron cases as you note, this will be devastating for so many longstanding, diligent and professional businesses operating on small profit margins.

Right now, businesses offering short-term lets are facing a perfect storm: first, the looming imposition of licensing at a national level; second, the possibility of planning control areas at a local level; and third, the spectre of additional Covid-19 uncertainty and restrictions. To compound matters, the recent Draft Budget made reference to the resumption of work on a visitor levy. Those who have been treading water now fear being totally submerged.

Make no mistake, this onerous and costly licensing scheme will cause many traditional self-caterers and B&B operators to leave the sector – hitting the supply chain and local economies in the process – and reducing the diversity of accommodation available and Scotland’s capacity to welcome visitors to our country.

But it doesn’t have to be this way. There is a cross-industry backed, viable and legally sound alternative regulatory proposal for mandatory registration, devised by the Association of Scotland’s Self-Caterers and endorsed by VisitScotland, which can meet the government’s policy objectives in a more cost-effective and proportionate manner. Just to re-emphasise, industry is not averse to regulation; we simply question the timing and specific nature of your proposals. We want to work with the Scottish Government to get this right to protect jobs and livelihoods at this critical time.

This is an issue of significant importance to our industry and members operating businesses the length and breath of our country. We earnestly hope you share our commitment to helping Scottish tourism’s recovery from the pandemic and therefore urge you to listen to the united voice of small business and reassess this damaging licensing system without delay.

Yours sincerely,

Association of Scotland’s Self-Caterers: Fiona Campbell, Chief Executive

Professional Association of Self-Caterers UK: Alistair Handyside, Chairman

Scottish AgriTourism: Caroline Millar, Sector Lead

Scotland’s Best B&Bs: Gordon Bulloch

Scottish Bed & Breakfast Association: David Weston, Chairman

Scottish Land & Estates: Simon Ovenden, Policy Officer

 

ASSC’s Rebuttal of Evidence Provided by Witnesses on 14th December 2021

Posted on by Melanie Allen

The opinions provided on 14th December to the Local Government, Housing and Planning Committee – for that is all they were; certainly not evidence – were extremely shocking both in terms of tone and content. The blatant hostility and antipathy levelled at small tourism accommodation providers was astonishing to behold. The self-confessed lack of evidence from supporters of the legislation provides nothing to back up their position, and yet is being given equal weight to the hard data and evidence provided by industry.

The Association of Scotland’s Self Caterers (ASSC) has received numerous comments from members across Scotland expressing their shock at the vitriol expressed by the witnesses towards small tourism accommodation owners. These are micro businesses caught up in the perfect storm of the damaging economic impact of COVID, in an already fragile rural economy – and now impacted by regulations whose aim has been expressly stated as being to ‘manage [them] down’; or, in other words, to put them out of business.

Due to the level of unsubstantiated claims, generalisations and misrepresentations of our sector, the ASSC were compelled to provide a rebuttal so that the Committee have a full appreciation of the facts.

Further to its consultation responses, as well as written evidence to the LGHP Committee, the  ASSC has provided evidence that short-term let licensing legislation will detrimentally effect thousands of operators, whether self-caterers or indeed home sharers, for no measurable benefit.

Our key concerns about the evidence provided by witnesses covers seven themes:

  1. Lack of understanding of sector
  2. Economic Impact
  3. Lack of data
  4. Impact on Local Authorities
  5. Anti-social Behaviour
  6. Housing
  7. ASSC’s Registration and Exemption Proposal

Summary of Concerns

  • There is a general consensus from witnesses that the vast majority of operators are professional and compliant, yet there is also an assumption that operators are “unscrupulous”, “poorly regulated or poorly managed”. These contradictory positions cannot hold.
  • ASSC members, many of whom have been operating for decades, refute the allegation that the sector is the “Wild West” and at they are “unscrupulous”.
  • The accusation of drug dealing, sex trafficking and puppy farming is offensive and unsubstantiated.
  • The value of the sector has been undermined and witnesses suggest that is provides no value to the Scottish economy or local communities – our businesses will seemingly not be missed.
  • Witnesses evidenced a lack of understanding of the traditional accommodation sector or short-term lets, with repeated discussion regarding one online platform as being ‘the industry’.
  • Witnesses evidenced a lack of understanding of existing regulations – in relation to anti-social behaviour and health and safety, as well as evidencing confusion of what it is the legislation is attempting to address
  • There is no evidence or data of the impact of short-term lets on housing
  • There is no evidence whatsoever to underpin a “reason of general interest”, which is legally required when introducing licensing legislation
  • Discussion regarding global corporations and large businesses does not reflect ASSC or Scottish Bed & Breakfast (SBBA) membership – they are micro businesses that have been part of communities for decades
  • Contrary to assertions from the panel that industry has fought against regulation, the ASSC proposed registration, transparency and health and safety compliance in 2017
  • Witnesses confirmed that the legislation will prove challenging to local authorities
  • Only one local authority perspective (Edinburgh, a longstanding supporter of licensing) has been provided as oral evidence, while the Committee’s survey results and consultation responses show considerable concern from other local councils about the impact of licensing.
  • Toxic comments from witnesses looking at cases in isolation have caused deep concern from professional legitimate businesses across Scotland

Read the Rebuttle in Full Here:

Rebuttal of Evidence Provided by Witnesses on 14th December 2021