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Category: Member Benefits

Postponement of Regulations Sought

Posted on by Fiona Campbell

A letter was circulated to the Scottish Government from 38 leading business and tourism stakeholders in Scotland, including CBI Scotland, Scottish Chamber of Commerce, SCDI, UK Hospitality, FSB Scotland, and the STA on 26th October, underlining our concerns and calling for a postponement of the regulations.

During a call with the First Minister last week (11th November), Fiona Campbell, ASSC’s CEO, made the following points:

Concerns with Short-Term Let Consultation

  • The ASSC is extremely concerned at the speed and manner in which the short-term let consultation has been conducted given the changed context since the proposals were first unveiled earlier this year. Covid-19 has resulted in an extremely perilous set of circumstances for tourism – yet the consultation made no reference to the pandemic.
  • The truncated timeline for the consultation, coupled with the lack of a partial Business Regulatory Impact Assessment, which goes against governmental best practice, has heightened our fears about the entire process.
  • Our question is, are the proposals proportionate, and are they targeted?

Economic impact

  • Concerns over the short-term let consultation are not limited to those working in the self-catering/short-term rental industry.
  • The industry-wide letter was a recognition of the fact that self-catering is a crucial component part of Scotland’s tourism industry (and its recovery), generating approximately £723m per annum to the Scottish economy alone – and one which boosts related industries like hospitality through the economic footfall of our guests.
  • The introduction of short-term let regulations comes at a time when many self-catering businesses are facing financial devastation as a consequence of the ratcheting up of restrictions:
    • Our sector can expect to lose as much as £70m in the last three months of 2020 due to cancelled bookings.
    • In a recent ASSC survey, 94% of respondents have stated a negative financial impact of Covid-19 to their business.
  • Without a BRIA, we can’t tell what the negative impact may be. Given the uncertainties just now due to the pandemic, this further uncertainty is rendering the sector untenable. People are fighting for their livelihoods.

Request for Delay

  • Given the huge local and economic impact, and the challenging Covid-19 environment, it is only fair that any regulation must be properly considered and scrutinised. We would therefore respectfully recommend that the Scottish Government should pause their work on the regulations – mirroring the welcome approach taken with the Transient Visitor Levy – so that the industry has time to recover from the devastating consequences of Covid-19.
  • Such an approach would also enable a greater discussion of the consequences of the regulation and ensure that we arrive at a balanced solution that can benefit business and communities.
  • To emphasise, the ASSC are not anti-regulation – we have put forward a series of evidence-based alternatives that could meet your policy objectives in a more cost-effective and proportionate manner – and we remain absolutely committed to working with your government to ensure a positive outcome for Scottish tourism.

FM Statement 10th November 2020

Posted on by Fiona Campbell

During her statement to Parliament, the First Minister covered the following (10/11/20):

  • The FM confirmed that additional 832 new cases of COVID-19 had been identified, bringing the total to 75187. She also confirmed that 1239 people were in hospital, with 102in ICUs. She further confirmed that there had been 39 additional death reported in the previous 24 hours bringing the total to 3079.
  • Prior to outlining the revised level, the FM praised the effect that the restrictions had been having but also warned viewers not to expect many council areas to be reclassified.
  • The FM confirmed that no local authority would move to a lower tier, stating “It would not be prudent to ease restrictions today. While no local authority will move to level 4 this week, there are a number that are giving us some cause for concern and we will be monitoring these particularly closely over the next few days.”
  • Highland, Orkney, Moray, and Shetland were announced to be remaining in level 1.
  • The FM announced that, in the island authorities, people will be able to meet in one other household with a limit of six people.
  • The FM confirmed that Aberdeen City, Aberdeenshire, DNG, Borders, and Argyll and Bute would remain at level 2
  • The FM also confirmed that Angus, Fife, and Perth and Kinross would move to level 3 from Friday. “The advice of the Chief Medical Officer and National Clinical Director is that level 2 restrictions may not be sufficient to slow down and reverse increases of this magnitude and, as a result, an early move to level 3 was strongly recommended.”
  • The FM also noted that the level 3 areas were under constant review, indicating that some were close to level 4, but that no areas were to be put into level 4 at the moment.
  • On the subject of travel restrictions, she said: “Let me stress the travel restrictions that remain essential to tackling the virus. These will remain in guidance over the next week but we continue to prepare the regulations, and resolve the practical issues, that would be required to put them into law.”
  • The First Minister also reiterated the current guidance, “If you live in a level 3 council area, do not travel outside your own local authority area unless it is for essential reasons such as work that can’t be done at home, healthcare, or caring responsibilities. And if you live elsewhere, do not travel into a level 3 area, except for those same essential purposes.”
  • The Covid protection level (tier) for each of Scotland’s local authority areas and guidance on what you can and can’t do has been published on the Scottish Government website here.
  • The FM closed by reiterating the rules that are currently in place as well as the FACTS guidance.
  • In the questions session, Scottish Conservative Holyrood group leader, Ruth Davidson, quizzed the FM on her plans for the imminent Pfizer vaccine, Scottish Labour leader, Richard Leonard, pressed the FM on the restrictions and their legal enforceability, Green co-convener, Alison Johnstone talked about the UK Government, Scottish Liberal Democrat leader, Willie Rennie, clashed with the FM on student testing. Further, Both Maurice Golden and Bruce Crawford asked the FM about the support available to the tourism and hospitality sector, mentioning self-catering specifically.

 

Financial Support for the Self-Catering Sector

Posted on by Fiona Campbell

The ASSC sought clarification on the following subject: ‘Apart from furlough, is there any support available to businesses who are partially closed due to people not being able to stay with them anymore?’

Response from the Scottish Government:

Regarding additional support to businesses such as self-catering, which are still able to operate but have reduced custom due to restrictions on households meeting indoors and / or travel restrictions due to the tier system – eligibility for business support grants (depending on rateable value) are now targeted at businesses required to close by law or at businesses that remain open but are directly impacted by restrictions. 

 This means that:

  • Businesses are only eligible for Hardship Fund support if they are in Level 3 or 4, and the regulations require them to close or operate differently
  • Self-catering businesses, that are in Level 1&2 or Level 3, but are finding visitor numbers lower because of the travel / gatherings restrictions are not eligible for Hardship Fund support.
  • Funding eligibility is dependent on what level the business itself is in and what direct restrictions are placed on it, rather than its customer base.  Indirect restrictions, arising from both travel and socialising restrictions are not a basis for additional financial support. 

I appreciate how tough the current conditions are for you and the self-catering sector and know that this is will not be the response you’d hoped for.  However, we have noted your call for an additional financial support package, and are considering all requests within the context of the recommendations within the Tourism Recovery Taskforce report.  In the current financial climate there are a number of sectors within  tourism and hospitality which have unfortunately not yet received any targeted financial support and this is likely to be the focus for prioritising limited financial support available.  We also continue to urge the UK Government to transfer the financial powers needed to fully respond to the economic crisis caused by the pandemic.