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Month: January 2021

SCOTTISH GOVERNMENT MESSAGING IS ‘KILLING THE TOURISM SECTOR’

Posted on by Melanie Allen

The Association of Scotland’s Self-Caterers has hit out at the impact of Scottish Government messaging on the industry.

In a snap survey of ASSC members, three quarters of respondents said Scottish Government messaging is having a negative impact on bookings.

Yesterday, First Minister, Nicola Sturgeon, said:

“I hope staycations in the summer may be possible, but I’m not going to stand here today and say that’s definitely going to be the case by x date and everyone books holidays and for whatever reason it doesn’t turn out like that and then rightly they’ll be blaming me for booking a holiday they can’t have.”

Following the First Minister’s statement the ASSC sent out a survey to its members. Three hundred businesses responded in the first hour alone, with a third coming from the Highland region.

75% said Government messaging was having a negative impact on bookings. 96% have doubts about a tourist season at easter, and 90% have doubts about a summer season. 75% also reported feeling ‘negative’ or ‘somewhat negative’ about business over the next twelve months.

Following media reports in England of holiday bookings coming “thick and fast”, Scotland’s Self-Caterers were asked if that statement reflected their own experience. 40% of respondents said they have received no bookings at all and another 50% reported bookings being down in comparison to ‘normal’ years.

The ASSC’s Chief Executive, Fiona Campbell, says the industry is on its knees and the Government is not helping.

“Words matter and especially when they come from the First Minister. Our industry was already facing another deeply challenging year but a Government message that casts serious doubt on the ability of people to have a holiday in Scotland in 2021 is killing the tourism sector.”

The results of the ASSC’s survey have not come as a surprise to the Destination Management Organisation for Skye and neighbouring areas, SkyeConnect. The organisation’s Project Manager, Alistair Danter, also runs a self-catering business.

“Bookings across the sector are extremely low or non-existent. In my own case, I have had a few tentative enquiries, but no bookings. Business confidence in our sector is at an all-time low and we need support from Government to survive. That support is not just financial. We would like to hear positive messages that demonstrate there is a clear strategy. For example, has inbound international travel been ruled out for this year? Will people in the UK be able to travel between areas in different levels of lockdown? Will multiple households be able to holiday together? We appreciate the timescale is uncertain, but businesses need to be able to prepare and adapt operations for whatever lies ahead.”

With thank to Skye Connect for this article

Scottish Government Budget, 2021-22

Posted on by Fiona Campbell

Introduction

  • Described as the most important of devolution era, the Scottish Government’s Cabinet Secretary for Finance Kate Forbes set out the Scottish Budget for 2021-22, the final budget ahead of the upcoming Scottish Parliamentary Elections which are expected in May 2021.[1]
  • Against the backdrop of the pandemic, the Cabinet Secretary stated that the Budget focused on three key priorities: creating jobs and supporting and investing in a sustainable recovery; responding to Covid-19; and tackling inequalities.
  • Prior to setting out the Scottish Government’s spending commitments, she outlined Scotland’s economic performance and outlook: the economy was now 7.1% smaller than it was pre-COVID, with GDP forecast to fall 5.2% in the first quarter of 2021, and unemployment to increase to 7.6% in Q2 this year. GDP is not expected to return to pre-pandemic levels until 2024.
  • The Cabinet Secretary argued that her plans would aim to “bring much-needed support and stability” during the pandemic but also lay the groundwork for a “fairer, stronger and greener” economy in future.[2]

Main Points

  • Income Tax: thresholds for starter, basic and higher rate bands of income tax will increase by inflation, while threshold the top rate will be frozen at £150,000.
  • LBTT: return the ceiling of the nil rate band for residential land and buildings transaction tax to £145,000 from 1 April.
  • Landfill Tax: increase the standard rate of Scottish landfill tax to £96.70 per tonne and the lower rate to £3.10 per tonne.
  • Business Support: the Strategic Framework Business Fund continues beyond this financial year. The Cabinet Secretary stated that businesses eligible for the Strategic Framework Business Fund will receive full Level 4 payments on 22 February, regardless of any future changes to local restrictions.
  • Non-Domestic Rates: the non-domestic rates tax rate will be reduced mid-revaluation from 49.8 to 49 pence. Furthermore, retail, hospitality, leisure and aviation businesses will get 100% non-domestic rates relief extended for at least an additional three months.
  • Local Government: £11.6 billion for local government, including £90 million to compensate local authorities which choose to freeze Council Tax, plus £259 million in one-off funding.
  • Housing and Town Centres: £712 million will be provided for affordable housing and a new £55 million programme to support town centres and community-led regeneration projects.
  • Tourism: £55.1m will be provided to the tourism budget in 2021-22. They will also double the spend on the Rural Tourism Infrastructure Fund (to £6.2m), “helping tourist attractions and local communities make improvements to cope with increased visitors.”
  • Enterprise Agencies: provide £103.3 million funding for Highlands and Islands Enterprise and South of Scotland Enterprise – an increase of £17 million.
  • Sustainable Travel: provide £100 million to active travel, including large-scale infrastructure projects and access to bikes, as well as £1.6 billion for public transport such as rail and bus services.
  • Digital Connectivity: invest £98 million to improve digital infrastructure – including access to high quality broadband and mobile coverage.

Opposition Party Reaction

  • The Shadow Cabinet Secretary Murdo Fraser highlighted the unprecedented financial support from HM Treasury and emphasised the importance that this money was distributed to individuals and businesses. He welcomed the commitments on income tax but criticised the Scottish Government’s plans for a second independence referendum.
  • Interim Scottish Labour Leader Jackie Baillie welcomed elements of the Budget statement and sought further discussions, but called on the Scottish Government to increase the pay of social care workers.
  • The Co-Leader of the Scottish Greens Patrick Harvie sought detail on what spending could be diverted from high carbon infrastructure towards green spending projects.
  • The Leader of the Scottish Lib Dems Willie Rennie called on the Scottish Government to look again at the spending commitments on mental health, education and business support, and said that he intended to engage on those issues during his discussions with the government.

What Happens Next?

  • In order to get the Budget passed, as the SNP Scottish Government is a minority administration, they require the support of another party in parliament on their spending plans.
  • Traditionally, the SNP have relied on the Scottish Greens, a fellow pro-independence party, to pass their Budget Bill.
  • The Scottish Government will now enter into negotiations with opposition parties and will aim to have a deal done by the first full debate of the Budget Bill on 25 February.

[1] Scottish Government, Scottish Budget: 2021-22 (2021). Url: https://www.gov.scot/binaries/content/documents/govscot/publications/corporate-report/2021/01/scottish-budget-2021-22/documents/scottish-budget-2021-22/scottish-budget-2021-22/govscot%3Adocument/scottish-budget-2021-22.pdf

[2] The full statement by the Cabinet Secretary for Finance Kate Forbes MSP can be accessed here: https://www.gov.scot/publications/budget-statement-2021-22/

Marc Crothall, CEO of the STA said:

“The Finance Secretary made some very welcome announcements in today’s draft Budget; the continuation of the current Non-Domestic Rates relief for at least three months will come as a relief for businesses in the short-term, however this won’t go far enough in terms of supporting tourism businesses to a point of reopening and financial viability therefore it is crucial that additional funding comes from the Treasury to support a further extension.

The STA has been instrumental in campaigning for an extension and a lower poundage rate and we are pleased that our asks have been recognised, with Ms Forbes announcing the lowering of the poundage rate to 49p.

The commitment today to support the delivery of some of the recommendations of the Tourism Task Force is very much welcomed as is the budget allocation to improve Scotland’s digital infrastructure through high quality broadband and improved mobile coverage and also our physical infrastructure and transport.

The announcement that the Rural Tourism Infrastructure Fund will be doubled to support tourist attractions which have been so badly exposed financially as a result of the pandemic, with many receiving little or no funding to date will come as good news to many businesses and community organisations which can now plan to create the right foundations to welcome visitors to our rural areas when travel restrictions ease.*

The focus on developing our people is one of the key priorities of Scotland’s tourism strategy, Scotland 2030 and I am delighted to see the substantial investment in education to support recovery of the sector and bring young, emerging talent into Scotland’s tourism industry.  This is absolutely critical if we are to build a sustainable, innovative and attractive tourism product to showcase to the world.

I look forward to our continued conversations with Ms Forbes over the coming weeks to learn more detail around the breakdown of the figures announced today; the STA will be meeting with Minister Stewart from the Scotland Office on Monday and will press further for increased support from the Treasury to support many of the priority areas which we have detailed throughout the pandemic and to ensure that the Non-Domestic Rates relief can be further extended beyond the three months announced today.

In addition to these announcements of support, what the industry needs now is a route map for reopening domestic tourism and additional support packages to protect the sector, especially for those businesses that are heavily dependent on international tourism, given the Scottish and UK government’s current position on international travel to the UK.

It is heartening to see that many of the STA’s policy agenda priorities have been adopted in this budget and is testament to the strength of relationship our industry and the STA has with the Scottish Government and their understanding of the short and longer term needs of the sector.”

*Following the release of our statement, we were informed by the Scottish Government that there was an error in the Budget terminology and that ‘attractions’ should have been referred to as ‘destinations’.

Update from the Scottish Government on Tourism Support for Larger Self-Catering Premises, Exclusive Use Properties and B&Bs

Posted on by Fiona Campbell

This note relates to grant payment support for large self-catering properties, exclusive use properties and B&Bs announced on 21 January 2021 by the Cabinet Secretary for Rural Economy and Tourism.[1]

Holiday accommodation providers, including self-catering properties, exclusive use properties, B&Bs and other accommodation types required to close under The Health Protection (Coronavirus) (Restrictions and Requirements) (Local Levels) (Scotland) Regulations 2020, and liable for Non Domestic Rates are already eligible for grants under the Strategic Framework Business Fund, and should apply to their Local Authority to get this.[2]

In addition certain types of self-catering and exclusive use accommodation, and B&Bs paying council tax, will receive tailored support, because of the unique impact on them, or their unique position (B&Bs),

For self-catering and exclusive use there is one-off additional support valued at £7 million comprising:

a.) The Large Self-Catering Grant which was originally announced by the Scottish Government as part of the £104 million tourism and hospitality package in December –  to be referred to, as required, as the ‘Large Self-Catering Grant’.

This fund has been designed in recognition that larger self-catering properties have been uniquely impacted by the single household rule introduced on the 23rd of September.

Self-catering businesses are eligible to apply if they have a property which accommodates 7 or more people for which they pay Non Domestic Rates.  The number of bed spaces will be linked to records held by Rates Assessors.  The large self-catering grant will make one off payments of £2,000 available to eligible applicants.

Please note – The application process for this fund is not yet live, and further details on where and how to apply will be provided asap – see below.

b.) The Exclusive Use Grant which was announced as part of the same package above in December – to be referred to: as required, as the ‘Exclusive Use Grant’.

In recognition of the restrictions on gatherings and the one household rule for self-catering accommodation, Exclusive use properties are eligible to apply for one off grants of £10,000 if they pay Non Domestic Rates and have been evaluated by the Scottish Assessors Association[3] as an Exclusive Use Venue providing overnight accommodation, either in their main building or in lodges at the property or a combination of both.

Please note – The application process for this fund is not yet live, and further details on where and how to apply will be provided asap – see below.

For B&Bs paying council tax there is additional support valued at £1m every 4 weeks to be referred to: as required, as the ‘Support for B&Bs paying Council Tax Grant’.

c.) Support for Bed & Breakfasts paying Council Tax Grant

Further support will be provided to eligible  B&Bs which do not pay Non Domestic Rates, but pay council tax.  The Strategic Framework Business Fund (SFBF) provides grants for NDR paying businesses required to close by law as a result of COVID-19 restrictions.  B&Bs paying council tax will get equivalent support comprising  £2,000 every 4 weeks.

d.)  Islands businesses in Level 3 are also eligible for support to the equivalent of Level 4 Strategic Framework Business Fund.  Eligible businesses will be able to access the funds outlined above as well as, where applicable.

Coronavirus (COVID-19): Strategic Framework Business Fund – gov.scot (www.gov.scot)

Operational arrangements for these funds will go live in February.  Further detail will be announced on Find Business Support Find business support in Scotland – Find Business Support.  Please note that businesses operating without a business bank account but meeting other key eligibility criteria will be eligible for support. 

Business are asked NOT to contact their local authority about the Large Self-Catering, Exclusive Use and Support for B&Bs paying Council Tax Fund at this point, but to monitor Find Business Support Find business support in Scotland – Find Business Support, for more details.  Information on when and how to apply will also be shared via stakeholder groups in due course.   

[1] Scotland’s Economy Support for larger self-catering properties and B&Bs – Scotland’s Economy (blogs.gov.scot)

[2] Eligibility for the Strategic Framework business fund is based from The Health Protection (Coronavirus) (Restrictions and Requirements) (Local Levels) (Scotland) Regulations 2020, and only business premises that are specified here to close or modify operations are eligible.

[3] R2017 Valuation of Exclusive Use Venues (saa.gov.uk)