Local Authority Responses to the Scottish Government STL Consultation

While this consultation was never about whether respondents support/opposed licensing, some of the comments from local authorities on the impact of licensing are really quite stark. The Scottish Government maintain that the fees charged will make the system cost neutral but the local councils clearly state that does not address:

  • The initial costs of setting up licensing schemes – are the SG going to fund this?
  • The impact of Covid-19 on local authorities from a financial and personnel perspective and how this will be impacted by the additional burden of licensing.

It should be noted that some of the respondents below may actually support licensing in general but have concerns about its implementation at the current time and without it being properly resourced. So we can’t necessarily say x or y council opposes licensing overall.

COSLA

“It will be necessary to understand the administrative burden that this may place on local authorities and how this will be resourced.”

https://consult.gov.scot/housing-services-policy-unit/short-term-lets-licensing-scheme/consultation/view_respondent?_b_index=900&uuId=552786991

Aberdeen City Council

“We believe that the 12-month lead-in time to establish our Short-term Let regime will be resource intensive and there will be no ability to recruit additional staff when resources aren’t available until licence applications are submitted and fees paid. This poses staffing issues for the council. Consequently, we believe that the Scottish Government should fund the start-up costs.”

https://consult.gov.scot/housing-services-policy-unit/short-term-lets-licensing-scheme/consultation/view_respondent?_b_index=480&uuId=738532527

Borders Council

“…it is considered essential that Scottish Government provide specific funding for additional resources required by LA’s to cover the initial set up costs, including the transitional and compliance elements of the new legislation.”

https://consult.gov.scot/housing-services-policy-unit/short-term-lets-licensing-scheme/consultation/view_respondent?show_all_questions=0&sort=submitted&order=ascending&_q__text=borders&uuId=648059965

Comhairle nan Eilean Siar

“We have no indication of what the full impact of any COVID-19 fallout will be as the situation is ongoing. Economic recovery may be protracted and we may be dependent on our Tourism Sector to inject life into our economy. Providing us with as much flexibility as possible with regard to regulations would help us in the long term.”

“The evidence gathering, consultation and mechanism to set up a control area will require resourcing, finance and additional staff time to deal with retrospective planning applications where these are required during the transitional period. This legislation will have significant implications for both Development Plans & Development Management, ever diminishing teams against a background of annual budget cuts.

The issue of enforcing regulations and the extra work this will entail is likely to fall on Planning and Licencing staff. In the current climate, the Comhairle is undergoing consultations on cuts that will need to be made to balance support given during lockdown. There is no budget available currently for the recruiting and training of staff and although it is anticipated that potential fees will pay for any staff, there is an initial outlay required, which has not been planned for in budgets. We propose an initial start-up grant or loan from Scottish Government.

Each application would require due consideration and income from planning fees for Change of Use, at current levels, would be unlikely to cover additional staff time for this work.”

“Paragraph 6.4 all local authorities must have a live licencing scheme open to receive licensing applications by 1 April 2022.
• There are 18 months until this needs to be in place, and probably about 12 months once we know the outcome of this consultation and see guidance in the spring. There are policies to be written, consultations to be carried out with public and stakeholders, committees to seek approval from, staff to be employed and trained etc. We are still working from home and under restriction, and with the best will in the world, 18 (or 12) months to get everything underway, when we don’t know what is happening with our workplace, or indeed the way we are working, seems ambitious. We propose the deadline is pushed back by one year.”

https://consult.gov.scot/housing-services-policy-unit/short-term-lets-licensing-scheme/consultation/view_respondent?_b_index=780&uuId=458288928

Glasgow City Council

“It is anticipated that there will be significant resourcing issues for the Local Authority in setting up a licensing scheme. Significant staff resourcing for set of scheme/verification process/carrying out inspections/enforcement etc. would be required.”

https://consult.gov.scot/housing-services-policy-unit/short-term-lets-licensing-scheme/consultation/view_respondent?_b_index=900&uuId=52867059

 Highland Council

“The new regulatory responsibility of both licensing and control areas are anticipated to have significant, budgetary and regulatory impacts on the Highland Council; invoking responsibilities in relation to the status and safety of a very large number of properties across a dispersed geographical area…”

Highland Council also estimate that they could receive as much as “10,000 potential applications” on licensing and that while the “scheme permits a phased approach over a 3-year period but this will still present considerable administrative and operational undertaking for dealing with the initial applications. Ongoing resource will then be needed for renewals and new premises.

The workload will necessitate additional staff for the following teams:
• Licensing team – additional administrative licensing staff
• Planning team – additional full-time posts (professional support officers) for a two-year period. There would still be resource required after this two-year period to cover new and renewed licence enquiries, however this is anticipated to be at a much lower level.
• Environmental Health additional full-time posts (technical officers) for a two-year period. There would still be resource required after this two-year period to cover new and renewed licence enquiries, however this is anticipated to be at a much lower level.
• ICT systems – a review of the on-line tools to enable self-service and on-line payments to streamline the application and payment process.”

https://consult.gov.scot/housing-services-policy-unit/short-term-lets-licensing-scheme/consultation/view_respondent?_b_index=840&uuId=880423694

North Ayrshire Council

“Councils are to set up a new system, complete with new conditions and an inspection system involving Housing, Protective Services and Planning by 1 April 2022 at the latest. This would be a substantial task at any time, but it is particularly onerous when Council staff, working remotely, are facing increased demands to provide services to the public due to the coronavirus pandemic and Councils are facing unprecedented challenges, particularly with regard to licensing due to the coronavirus pandemic.

(a) if premises are to be inspected, Council staff must be available for this;

(b) Council staff are already having to work under pressure as the Coronavirus restrictions are regularly changed. In the case of STLs, where there are objections or representations to Licence Applications, delegated powers are not available to Council officers and the Application must be considered by the Licensing Committee. If there are to be around 327 Applications in North Ayrshire, then a portion of them will need a ‘virtual hearing’ compliant with ECHR 6. This would place a burden on Licensing Authorities at a time when they are least able to bear it.

2.2. Although Councils will be able to choose when the licencing scheme will start locally, it must be within 12 months after 1 April 2021.

2.3. The new STL system commences at most 18 months away, and Councils have not seen the secondary legislation on which the new system will be based. It will be laid in Parliament in December 2020 and has not been issued in draft. It has not been stated whether Application forms and other documentation will be prescribed, or whether they are to be drafted by individual Councils.”

https://consult.gov.scot/housing-services-policy-unit/short-term-lets-licensing-scheme/consultation/view_respondent?_b_index=780&uuId=560815682

South Ayrshire Council

“…there is an element of concern regarding the proposed lead in time for implementation of a robust licencing regime, the resources this will require and the added pressure to workloads required of staff and services.”

https://consult.gov.scot/housing-services-policy-unit/short-term-lets-licensing-scheme/consultation/view_respondent?_b_index=900&uuId=900902345

Stirling Council

“The implementation, management and enforcement of the [licensing] process is considered particularly resource intensive for local authorities, with little guidance given around who would be expected to lead the process.”

https://consult.gov.scot/housing-services-policy-unit/short-term-lets-licensing-scheme/consultation/view_respondent?_b_index=900&uuId=465853950

West Dunbartonshire Council

“For smaller authorities with fewer short term let premises it may be difficult to fully resource an effective and efficient service without the fees being very high and thereby creating a wide and varying fee structure across the country. There is a concern about the level of Fees that a smaller Local Authority may charge where they are not dealing with a large volume of applications and have limited resources to deal with such applications. The fee structure may not be of a sufficient level to meet resource concerns and the adverse comparisons by the public as to differing fee structures around the country as can happen in Civic Government Licensing.”

https://consult.gov.scot/housing-services-policy-unit/short-term-lets-licensing-scheme/consultation/view_respondent?show_all_questions=0&sort=submitted&order=ascending&_q__text=West+Dunbartonshire+Council&uuId=124670121

Read more about the impact of the proposals on local authorities.

 

In the Press

A number of publications have today picked up the ASSC’s Statement on the Scottish Government’s STL consultation response, alongside the Frontline Survey Report, as we continue to raise the issues facing Scottish Self-Catering…

Scottish Daily Mail

Herald

 

ASSC Quotes

Herald, Scots holiday providers slam ‘wrecking ball’ Covid rules that cost them £265m in three months, 11/12/20
Herald, Scottish Government to press ahead with Airbnb crackdown, 10/12/20

Arla, Scottish Government set to introduce Short-Term Lets Licensing in April 2021, 09/12/20

Scotsman, Targeted support for suffering sectors worth £185m announced by Scottish Government, 09/12/20

STLs

Evening News, Short-term let landlords get two years to prepare for new licensing system, 11.12.20

Scottish Housing News, Extra time for short-term lets hosts to prepare for new standards, 11.12.20

Insider, Short-term let hosts will have until 2023 to apply for licence, 11.12.20

Evening Express, Short-term lets hosts will have until 2023 to apply for licence, 10.12.20

Tourism

BBC, Covid in Scotland: New support grants for taxis, tourism and weddings, 10/12/20

Falkirk Herald, Falkirk area firms participate in virtual Scotland Reconnect 2020 tourism event, 09/12/20

STL Licensing: Letter to First Minister

The following letter has been sent to the First Minister this evening:

Dear First Minister,

ASSOCIATION OF SCOTLAND’S SELF-CATERERS RESPONSE TO SCOTTISH GOVERNMENT PLANS FOR SHORT-TERM LET LICENSING AND PLANNING CONTROLS

Back in October 2020, 38 leading business and tourism representatives wrote to the Scottish Government to urge a pause in plans for the introduction of short-term let regulations at the current time due to the impact of the Covid-19 pandemic. The letter also drew attention to concerns regarding the truncated consultation process which contradicted the Scottish Government’s own best practice guidance, including the lack of Business Regulatory Impact Assessment (BRIA) or partial BRIA.

During the Association of Scotland’s Self-Caterers (ASSC) call with you and the Scottish Tourism Alliance on 11th November 2020, you mentioned your awareness of this letter and that the Scottish Government would carefully reflect on its contents, and that a reply would be issued in due course. The Scottish Tourism Alliance, who were one of the original signatories to the initial stakeholder letter, sent you a follow-up letter on 31st November 2020, maintaining the need for a postponement, restating the impact of Covid-19 and the imperative of allowing the tourism industry to recover.

It was therefore with considerable surprise and astonishment that the Scottish Government have now published their consultation response today without a reply to either letter, despite your aforesaid commitment, and that your administration will proceed with these regulations. The SSIs will be laid in the week commencing 14th December, which will also finally see the publication of a BRIA.

We affirm that the proposals are inopportune during the current crisis, ill-judged and not fit for purpose, and will entail huge consequences not only for Scottish tourism but already resource-stretched local authorities. Despite widespread stakeholder unease, these concerns have been disregarded in the rush to stick to an artificial timeline. To take one example from the consultation document: “…some local authorities raised the impact of Covid-19 on their ability to process current licensing scheme applications, never mind an additional scheme.”

Furthermore, on the question of timing, the Scottish Government’s response to the consultation acknowledges the volume of concern about the timing of the regulations – but this has been brushed aside. To quote the Minister for Local Government, Housing and Planning Kevin Stewart MSP from the consultation foreword: “Perhaps the greatest number comments centred on whether to proceed with regulation at this time or to delay it.”

The ASSC seriously questions the prioritisation of this issue during a global pandemic, when related pieces of legislation such as the transient visitor levy have been dropped, and when many in the tourism industry are struggling for survival. Indeed, this week Frontline Consultants, a leading economics consultancy, highlighted that Covid-19 restrictions have cost the self-catering industry £265m since September 2020 alone – and this figure does not even consider the footfall generated by self-catering visitors in local businesses, hospitality venues and visitor attractions. Bookings have plummeted and travel restrictions for those areas in Levels 3 and 4, as well as from the rest of the UK, have effectively wiped out a crucial part of the domestic market for those businesses that remain open.

Throughout the entire regulatory discussion, the ASSC has constructively engaged with the Scottish Government on their proposals, and has offered less costly and onerous alternatives that would meet your policy objectives. In addition, self-catering has also acted responsibly throughout the pandemic, closing businesses where necessary – often at great personal and financial cost to operators and their families – and led the way with the safe reopening of the tourism accommodation sector back in the summer with government backed industry cleaning protocols. However, the constructive and responsible approach offered by our sector has not been reciprocated. Engagement needs to be a meaningful two-way process and while we may disagree on certain aspects of your proposals, we believe that industry needs to be treated fairly and for concerns to be properly considered. We deeply regret that this has not been the case during this consultation process and the manner in which the regulations will be taken forward.

A pause on the regulations – not abandoning the commitment to regulate altogether – would have enabled a more developed understanding of the likely consequences for all affected stakeholders and allowed the tourism sector to recover from the devastating impact of Covid-19. Instead, we are deeply disappointed by the Scottish Government’s decision to proceed at the present time, further compounding the difficulties faced by businesses the length and breadth of this country.

Yours sincerely,

 

Fiona Campbell

Chief Executive