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Month: December 2022

Headlines Scottish Budget 15th December 2022

Posted on by EleanorASSC

Scottish Budget Headlines 15th December 2022

The Deputy First Minister John Swinney confirmed the following in his statement to parliament:

  • Non-Domestic Rates: the Scottish Government will deliver a freeze to the Basic Property Rate.
  • Small Business Bonus Scheme: this will be reformed and extended to “improve the progressivity of the relief.
    • 100% relief will be available for properties with a rateable value of up to £12,000 and the upper rateable value for individual properties to qualify for SBBS relief will be extended from £18,000 to £20,000.
    • The government will taper SBBS relief for properties with a rateable value between £12,001 and £20,000: relief will taper from 100% to 25% for properties with rateable values between £12,001 to £15,000; and from 25% to 0% for properties with rateable values between £15,001 to £20,000. Cumulative rules will remain in place including the £35,000 cumulative rateable value threshold.
    • They will offer a Small Business Transitional Relief to ensure that properties that lose SBBS or Rural rates relief eligibility do so in a phased manner.
  • Additional Dwelling Supplement: legislation will be introduced today to increase the rate of the Additional Dwelling Supplement from 4% to 6%, with effect from 16 December 2022.
  • Air Departure Tax: the Scottish Government committed to introducing ADT when a solution to the Highlands and Islands exemption issue has been found. The Scottish Government intends to protect the Highlands and Islands exemption and to review the Air Passenger Duty (APD) rates and bands ahead of the introduction of ADT to ensure that policy aligns with Scotland’s climate change goals.
  • Tourism: the Scottish Government will work together with its partners on support for the sector, transitioning from an emergency response group to a Tourism and Hospitality Industry Leadership Group (ILG), which will help drive recovery and sustainable growth across both sectors in the long term.

The Local Visitor Levy / tourist tax did not appear to be mentioned in the Budget.

Consultation: Short-term Let Planning Guidance for Edinburgh

Posted on by Fiona Campbell

The ASSC welcomes the opportunity to respond to City of Edinburgh Council’s consultation on short-term let planning guidance. As the main trade association for the self-catering sector in Scotland, the ASSC hopes that our expertise and insight can help inform the approach taken by the Council.

The consultation closes on 22nd December.

We have always strived to work collaboratively and proactively with both local and national government stakeholders to ensure a balanced and proportionate outcome for all. We wish to make clear that the ASSC is not averse to regulation; but we do challenge policies that are pursued while lacking a firm evidence base which will damage the livelihoods of our members.

It is with considerable regret that there is once again a presumption of bad practice attributed to the short-term letting sector by City of Edinburgh Council. The proposed planning policy is unfair, disproportionate and discriminatory, setting criteria that amounts to a de-facto ban on short-term letting despite all assurances to the contrary. By identifying only a small number of limited circumstances where short-term lets are to be permitted, for example those with a main door in an area that is “commercial” in character, this will mean that the vast majority of short-term lets will be refused, leading to an exodus of small tourist accommodation businesses, severely impacting the local economy which depends on tourism.

Overall, the ASSC believes that the proposed planning policy should be rejected on the following grounds:

  • It is disproportionate in nature, lacks coherence and balance, and relies on assertions and anecdotes rather than a firm evidence base;
  • It will harm Edinburgh’s tourism related economy at a time when it should be supported to recover, and will all but remove a key source of accommodation that is imperative to the viability of the Festivals; and
  • It fails to properly consider the economic impact of the draft policy which will cost jobs and livelihoods in a sector that provides a £70m annual boost to the city.[1]

It is our recommendation that within a Short-term Let Control Area, planning permission should be granted:

  1. Where extensive refurbishment of a long-term empty dwellinghouse is proposed to bring the building back into active use.
  2. The proposal is for the upper floor(s) above a commercial unit.
  3. It is an established short-term secondary let property in a long-established dwellinghouse.

‘Established short-term secondary let property’ means:

A dwellinghouse that has been trading as a short-term secondary let property before the first date of the first approval at a Council Committee meeting proposing the establishment of a short-term let Control Area.

Read the ASSC’s submission: ECC STL Planning Guidance consultation response 12.12.22

[1] ASSC, Economic Impact of the Self-Catering Sector to the Scottish Economy (2021). Url: https://www.assc.co.uk/wp-content/uploads/2021/09/Economic-Impact-Study%E2%80%93Scotland.pdf

ASSC Response to Short-Term Let Licensing Delay

Posted on by Fiona Campbell

Following pressure from the Association of Scotland’s Self-Caterers, the Scottish Government have announced they will delay their plans for short-term let licensing.

The government will now amend the date by which existing operators must apply for a licence from 1 April 2023 to 1 October 2023. This was confirmed in a letter from the Cabinet Secretary Shona Robison to the Convener of the Local Government Committee Ariane Burgess.

This six-month extension was only made possible after pressure applied by the ASSC and other tourism stakeholders due to the impact of the cost-of-living crisis on the industry.

Small accommodation providers were enduring onerous and expensive red tape just to continue what they had been doing for decades. This additional expense, in the context of Covid recovery and the cost crisis, placed severe pressure on the sector.

Operators were faced by eye-watering fees in a confusing and inconsistent system, jeopardising jobs and livelihoods in an important part of Scotland’s tourism industry. The self-catering sector boosts the Scottish economy by £867m per annum, supporting 24,000 jobs. It provides a vital source of alternative accommodation for major events like the Edinburgh Festivals whose future viability remains at risk due to draconian short-term let regulations.

Elsewhere, the UK Government have committed to a less onerous registration scheme, while the European Commission have outlined proposals on regulation on data collection and sharing relating to short-term accommodation rental services.

While this delay will provide some momentary respite for the self-catering industry, the ASSC believes the Scottish Government must work in lockstep with industry and local councils to minimise the regulatory burden to support small business.

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

“The ASSC welcomes this announcement by the Scottish Government and we are pleased our hard work, as well as the efforts from our friends across the Scottish tourism industry, has resulted in this development. The ASSC has been pressing hard for a pause to the implementation of the scheme due to the cost-of-living crisis so it’s good to know our voices are being heard.

Our ongoing concern, however, is that it is not long enough to give our members the breathing space they need to get their license applications approved in the current climate. We do see this as progress and we will continue to push forward on behalf of our members, we know there’s lots of work still to do.”

Andy Fenner, CEO of the UK Short Term Accommodation Association (STAA), said:

“We are pleased that the Scottish Government has made its decision for a 6 month delay to the deadline by which existing operators in the short term holiday lets sector have to apply for a license. We have worked alongside the ASSC and the wider Scottish tourism industry to present constructive opposition to this unnecessarily onerous scheme and the potentially negative impact it is going to have on the livelihoods of current operators, enduring the cost of living crisis, and the damage it could have on Scotland’s tourism economy. We have already heard from the likes of the Edinburgh Festival that its future is threatened because this licensing scheme will effectively limit the amount of accommodation on offer to visitors.

“We are in favour of a much more pragmatic and less onerous registration scheme like the one the UK Government plans to introduce, which is very much along the lines that we have campaigned for. Ultimately, we believe that the Scottish Government would be much better advised to introduce this sort of scheme than its proposed unwieldy licensing scheme.”

Notes:

  • The ASSC welcomes the announcement by the Scottish Government to delay the date in which existing operators have to apply for a short-term let licence. However, there are still a number of unresolved issues to overcome if the sector is to survive and thrive.
  • The Scottish Government should use this time to reconsider their scheme so to avoid disastrous unintended consequences for the tourism industry, particularly for the hosting of large-scale events like the Edinburgh Festivals which depend on short-term lets to accommodate visitors, performers and workers.
  • An ASSC survey from November 2022 highlights the fears faced by hard working operators whose livelihood depends on getting these regulations right. Of the 1,148 respondents, 93% remain concerned about licensing with more than two-thirds (66%) saying they are considering leaving the sector. Nearly half are experiencing mental health issues due to the stress about the viability of their business.
  • Scotland is an outlier in terms of STL regulation. Elsewhere, the UK Government have committed to a less onerous registration scheme, while the European Commission have outlined proposals on regulation on data collection and sharing relating to short-term accommodation rental services.
  • A delay only provides a temporary respite. However, the Scottish Government need to work alongside industry and local councils to provide a supportive regulatory environment for small business, not one which punishes with exorbitant costs during challenging times. That should include a consideration of alternative means of achieving the Scottish Government’s policy objectives, including through registration.

What it means to our members:

“May  I offer my heartfelt thanks and appreciation for the work you have done on our behalf , this makes an incredible difference to us as a business and if I may say it is the best Christmas present we could receive .!

As an organisation , your tenacity and diligence  throughout has been outstanding and I’m sure I speak for many others as well as myself when I say we are so very grateful to  you all .

With kindest Regards and wishing you a happy and relaxed  Christmastime”

Media Coverage

Government postpones ‘ill-thought-out’ accommodation licensing scheme