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Category: Member Benefits

Scottish Government Draft Budget

Posted on by Fiona Campbell

Policy Context

  • The Cabinet Secretary for Finance and Economy Kate Forbes set out the first Scottish Government Budget of the current parliamentary term, following on from the UK Government’s Budget back in October, and amidst challenging economic circumstances.[1][2]
  • This was Forbes’ third budget and she framed it as one of “choices”. However, while there are difficulties facing public services due to the pandemic, the Scottish Government does have more resources at its disposal through record block grant funding from HM Treasury. Indeed, to meet its policy plans, choices will have to be made due to hefty health and social care spending commitments, as well as the interventions necessary to make net zero targets a reality.
  • The first budget of the SNP-Scottish Green government, and there was a strong environmental thread running through it, with Forbes set out three main themes underpinning her spending plans: reducing inequalities, supporting economic recovery, and tackling climate change.
  • The Cabinet Secretary pointed to Brexit, the UK Government’s financial settlement, and lack of full economic powers as factors hindering her plans, noting that she would have liked to have gone further in certain areas. However, the Budget did contain a range of bold spending pledges.

Key Announcements

Some of the key announcements from the Budget are as follows:

Income Tax/Council Tax

  • The Starter and Basic Rate bands will increase by CPI, and the Higher and Top Rate thresholds will remain frozen in cash terms, raising an additional £106m in 2022-23.
  • The Council Tax freeze will end next year as local authorities will be granted flexibility over council tax rates, the first time this has happened since 2007.

Support for Business and the Economy

  • The Scottish Government will continue to offer lowest Non-Domestic Rates poundage in the UK, as well as ongoing rates relief for the retail, hospitality and leisure sectors, at 50% relief for the first three months of 2022-23, capped at £27,500 per ratepayer.
  • They will continue the Small Business Bonus Scheme, expand the Business Growth Accelerator relief, and extend Enterprise Areas Relief until March 2023.
  • Provide £205.9m towards capitalisation for the Scottish National Investment Bank – helping it deliver against its missions of supporting Scotland’s transition to Net Zero.

Housing

  • The Budget provides £831m for affordable housing, progressing the government’s commitment to deliver 110,000 affordable, energy efficient homes across the next decade.

Tourism

  • £370.5m to support enterprise agencies and £49.2 million for VisitScotland.
  • The Scottish Government will also resume work on the Visitor Levy proposal.

Self-Catering

  • The Budget notes the following: “recognising the impact of COVID-19, the Scottish Government chose last year to delay the implementation of the requirement that self-catering properties be let for 70 days in order to be classed as non-domestic. We will lay legislation for 2022-23 to deliver this anti-avoidance measure, which has been recommended by the independent Barclay Review of Non-Domestic Rates in order to tackle a known potential loophole for second homes.”

Opposition Response

  • The Shadow Cabinet Secretary for Finance and Economy Liz Smith led the response for the Scottish Conservatives and criticised Forbes for ignoring the level of grant funding from the UK Government. She added that the Scottish Government should have extended business rates relief and challenged them on the lack of commitment to structural reforms and investment in skills and digital infrastructure.
  • Prior to the Budget, Scottish Labour’s attack lines had accidentally made their way into the public domain. Nonetheless, Daniel Johnson soldiered on and argued that the Scottish Government’s plans did not go far enough in terms of child payments and pay for care workers, noting that block grant funding enabled them to go further.
  • Alex Cole-Hamilton of the Scottish Lib Dems criticised the Scottish Government’s pay policy for public sector workers such as teachers and social care workers, and also appealed for extra funding for long Covid care.

Next Steps

  • The Budget will now pass to committee level – where amendments and changes can be made – before going to a vote in plenary of all MSPs in February 2022.
  • However, unlike in the previous parliamentary session where the SNP Scottish Government was a minority administration and relied on deals with opposition parties, due to the Cooperation Agreement with the Scottish Greens, the final vote is a formality.

[1] The Budget in full can be accessed here: https://www.gov.scot/publications/scottish-budget-2022-23/documents/

[2] The statement from the Cabinet Secretary for Finance and Economy is available here: https://www.gov.scot/publications/budget-statement-2022-23/

Licensing: Industry Briefing Recording Published

Posted on by Fiona Campbell

On 2nd December, the ASSC was joined by industry leaders on a session to discuss the Scottish Government’s Short-Term Let Licensing Proposals.

Panelists included:

  • David Weston, Chair, Scottish B&B Association
  • Gordon Bulloch, Scotland’s Best B&Bs
  • Kay Wilson, Destination Leader, Scottish Agritourism
  • Joanna Millar, Legal Director, Gilson Gray

Apologies were sent by:

  • Simon Ovenden, Policy Adviser, Scottish Land & Estates
  • Marc Crothall, Chief Executive, Scottish Tourism Alliance

230 people registered to join the session in 36 hours, and 125 have watched the recording since the event.

Watch the video here.

On 7th December, the Local Government, Housing and Planning Committee will take evidence on the Town and Country Planning (Short-term Let Control Areas) (Scotland) Amendment Regulations 2022 and the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2021 from —

Witnesses:

  • Fiona Campbell, Chief Executive, Association of Scotland’s Self-Caterers
  • Amanda Cupples, General Manager for Northern Europe, Airbnb
  • Shomik Panda, Director General, UK Short Term Accommodation Association
  • David Weston, Chair, Scottish Bed and Breakfast Association (SBBA)

Meeting Notes

SHORT-TERM LET LICENSING: ACT NOW TO PROTECT YOUR BUSINESS

Posted on by Fiona Campbell

Last week, the Scottish Government set out their revised short-term let licensing regulations. We were incredibly disappointed that they did not go further in responding to industry concerns, particularly as we put forward a proportionate and fair compromise, not to mention the fact that Scottish tourism is still facing huge uncertainty and remains in recovery mode – and as recent news shows, Covid continues to pose significant challenges.

Now that the licensing regulations have been laid in the Scottish Parliament, they will shortly be considered at the Local Government, Housing and Planning Committee and then voted upon by its members. It is likely that the short-term let regulations will be supported by the Committee but they will then head to a vote of all MSPs in parliament.

Members of the ASSC, alongside other small tourism accommodation providers like B&Bs, were instrumental in getting the Scottish Government to withdraw their licensing plans before a vote of all MSPs earlier this year due to the political uproar that ensued. We would like to thank each and every member who helped in that effort.

Make no mistake, the ASSC will continue to leave no stone unturned and lobby tirelessly on your behalf but we are now making an additional ask of you.

This will be the final chance to try and stop these damaging and ill-considered regulations. After years of regulatory discussion, it is unfortunate our views have been largely ignored. The government have also manifestly failed to listen to industry or legal experts, or the local councils that will be charged to deliver the legislation. But we need to make one last plea to protect small businesses in Scotland.

Here is what you can do to help.

  1. CONTACT YOUR MSPs
  • Please contact both your constituency and regional MSPs to highlight the threat to your livelihood from this onerous licensing scheme, note the positive impact your accommodation has had on your local area, and that the government simply hasn’t listened to small businesses or properly considered the ASSC’s exemption proposal for registered businesses.
  • Self-catering benefits the Scottish economy to the tune of £867m per annum and it is disappointing to say the least that policymakers are discriminating against our sector when we have benefitted local economies for decades.
  • As further background, some of the ASSC’s specific outstanding concerns with the legislation are:
  1. Clarity on Fees: there should be a cap on fees, not a scaled approach or just further guidance passed to councils. This would mirror the Scottish Landlord Register.
  2. Renewals: the process should operate on the assumption that a licensing application is renewed through self-certification, again like the Scottish Landlord Register.
  3. Neighbourhood Objections: all neighbourhood concerns over short-term lets should go through the existing system through better enforcement of anti-social behaviour legislation, as well as the use of noise monitoring devices.
  4. Inspections: council officers should not be allowed to turn up unannounced at a tourism accommodation business, especially when guests are in, but seek an appointment with the owner to provide access.
  5. Additional conditions: there should be an element of control over the additional conditions that local authorities could add into their licensing regime. Local councils should not be able to stipulate that they do not want short-term lets operating in tenemental properties, for instance, as this would be the return of overprovision powers via the back door.
  1. CONTACT YOUR COUNCILLORS
  • Short-term let licensing will not only have an adverse impact on our economy, they will also hit local councils at a time when they can least afford it – and the Scottish Government will not provide any additional funds for start-up costs.
  • In your correspondence, you should raise this vital local issue to councillors who may be unaware that the legislation will soon be voted on by MSPs. One thing they will be aware of is the local government elections in May 2022.
  • You need to convey that licensing will not only adversely affect tourism and local economies but will hit already stretched council budgets as this briefing makes clear: https://www.assc.co.uk/the-impact-of-short-term-let-licensing-on-local-authorities/. Moreover, you may find some of the comments from local councils highlighted here to be useful in your email: https://www.assc.co.uk/2021-short-term-let-consultation-responses/
  • You can find your councillors on your local council website.

The Scottish Government’s licensing legislation was withdrawn in February 2021, because it was not fit for purpose; but in December 2021, it remains unfit for purpose. Please implore your local representatives to act to support Scottish tourism and protect livelihoods by rejecting these anti small business regulations.

Thank you,

Fiona Campbell, CEO