February 2022 - Page 3 of 4

Non-Domestic Rates SSIs coming into force 1 April 2022

Posted on February 11, 2022 by Fiona Campbell

A number of Scottish Statutory Instruments that have been laid in Parliament recently will come into force on 1 April 2022.

The Council Tax (Dwellings and Part Residential Subjects) (Scotland) Amendment Regulations 2021 (legislation.gov.uk)

These regulations relate to the requirement that, to be classed as self-catering holiday accommodation, premises must be let for a period of at least 70 days in the financial year (in addition to the existing requirement that the premises be available for letting for 140 days or more).

The Non-Domestic Rates (Coronavirus Reliefs) (Scotland) Regulations 2022 (legislation.gov.uk)

These regulations provide 50% NDR relief between 1 April and 30 June 2022, capped at a maximum of £27,500 per ratepayer, for properties with specified uses in the retail, hospitality and leisure (RHL) sectors.

Parliamentary Questions February 2022

Posted on February 11, 2022February 11, 2022 by Fiona Campbell

The following written questions and answers have been submitted:

Short-Term Lets

S6W-06372: Liam Kerr, North East Scotland, Scottish Conservative and Unionist Party, Date Lodged: 08/02/2022 To ask the Scottish Government whether all short-term holiday let properties will be required to have an EPC rating of C or above by 2025; whether any short-term holiday let properties that do not meet an EPC rating of C or above by the deadline will, as a result, no longer be permitted to be let, and, if so, what it anticipates the financial impact will be on the Scottish tourism industry. Current Status: Expected Answer date 08/03/2022

S6W-06006: Rachael Hamilton, Ettrick, Roxburgh and Berwickshire, Scottish Conservative and Unionist Party, Date Lodged: 04/02/2022 R To ask the Scottish Government, in light of the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 and Town and Country Planning (Short-term Let Control Areas) (Scotland) Amendment Regulations 2022 being approved, whether overall responsibility for oversight of businesses in the short-term letting sector will (a) move to its Housing and Social Justice Directorate and (b) remain within the overall responsibility of the Cabinet Secretary for Finance and the Economy. Current Status: Expected Answer date 04/03/2022

Tourist Tax

S6W-06283: Sarah Boyack, Lothian, Scottish Labour, Date Lodged: 04/02/2022 To ask the Scottish Government when it plans to empower local authorities to introduce a Transient Visitor Levy; whether it will be for local authorities to decide (a) when and (b) how to use such a levy, and whether it will affect the distribution formula of the block grant to local authorities. Current Status: Expected Answer date 04/03/2022

Answers

Self-Catering

S6W-06118: Rachael Hamilton, Ettrick, Roxburgh and Berwickshire, Scottish Conservative and Unionist Party, Date Lodged: 02/02/2022 To ask the Scottish Government on what date did it last (a) meet and (b) correspond with the UK Government about the provision of support for self-catering businesses that have seen their business disrupted by the COVID-19 pandemic.

Answered by Ivan McKee: While the Scottish Government has not met or corresponded with UK Government on this question specifically, we meet and correspond with UKG regularly about funding in general.

Over the course of the pandemic we have worked closely with the self-catering accommodation sector and Scottish Tourism Alliance on the recovery and support for the sector and we will continue to do so.

The Scottish Government recognises that the self-catering accommodation sector, alongside many other businesses across Scotland has been adversely affected by Covid-19. In addition to the regular Strategic Framework Business Fund which previously supported small accommodation providers, a range of tailored support to meet the needs of tourism businesses was developed. This included the Small Accommodation Providers Paying Council Tax Fund (SAP-CTF) which eligible Bed & Breakfasts, Guesthouses, small serviced accommodation providers and other self-catering businesses that paid council tax were able to access. Other targeted funds included the large self-catering grant and support for the B&B sector via a fund of up to £3 million to support those B&Bs with no business bank account. Equivalent tailored funds have not generally been available in England.

We will continue to engage in dialogue with the UK Government on issues of funding and to monitor the impacts of COVID on Scotland’s tourist industry.

Short-Term Lets

Question S6W-05750: Mark Griffin, Central Scotland, Scottish Labour, Date Lodged: 20/01/2022 To ask the Scottish Government whether it has completed its consideration of how to complete the review of the tax treatment of short-term lets; whether the review is complete, and whether it will (a) publish the review or (b) outline the timetable for completing the review.

Answered by Shona Robison (02/02/2022): During the COVID-19 pandemic we prioritised work on the Short-term lets Licensing Order and Amendment Regulations for short-term let control areas. This enabled the statutory instruments for these to be considered by the Scottish Parliament in this session and meant the review of the tax treatment of short-term lets was deferred.

We intend to recommence the tax treatment review in the coming months to ensure that short-term lets make an appropriate contribution to the communities they operate in.

Consultation: Badenoch & Strathspey as a Short-term Let Control Area

Posted on February 2, 2022February 2, 2022 by Fiona Campbell

The Highland Council & the Cairngorm National Park Authority has announced the start of a consultation on bold powers for tackling the rural housing crisis across Badenoch & Strathspey.

The consultation relates to the proposal to designate Ward 20: Badenoch & Strathspey as a Short-term Let Control Area. If established, all houses and flats within the Ward, used for secondary letting would be required to obtain planning approval to continue to be used as a short-term let.

Badenoch & Strathspey Councillors are concerned that the number of houses and flats being lost to this sector is such that it is unduly restricting housing supply for full time residents and increasing local house prices, to the detriment of local communities. Councillor Bill Lobban, Convener of the Highland Council & Chair of the Badenoch and Strathspey Area Committee welcomed the consultation, commenting we are delighted to be advancing this project at this time to support our rural population and communities.

Comments are being sought on the extent to which the introduction of a Control Area would help to address the issue and is being run online until Monday 7th March 2022. (www.highland.gov.uk/stlcontrolarea).

The Highland Council is currently only the second Local Authority in Scotland to be proposing the establishment of a Short-term Let Control Area, after Edinburgh Council proposal for to establish one across its entire Council area.

Following the consultation, the Council will review and consider all responses, before presenting a proposal to the Council Economy and Infrastructure Committee. If the committee approves the Short-Term Let Control Area designation, the Council will seek final approval from Scottish Ministers, before the Badenoch & Strathspey as a Short-term Let Control Area will come into effect in late 2022.

A Control Area is not a ban on Short Term Let and would not change the planning rules around certain type of accommodation. This consultation is also not related to the recent the Scottish Government announcement for all forms of Short-term Lets to be licensed by April 2024.

For further information, please visit www.highland.gov.uk/stlcontrolarea or contact the Highland Council, Development Plans Team ondevplans@highland.gov.uk