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Category: Regulations

Scottish Government Emergency Budget Review: Short-Term Let Licensing and Local Visitor Levy

Posted on by Fiona Campbell

The Scottish Government has published their Emergency Budget Review following a Statement to Parliament by the Deputy First Minister John Swinney.

The review was established back in the summer to “assess any and all opportunities to redirect additional resources to those most in need, reduce the burdens on business and stimulate the Scottish economy” and review statement had been delayed as a result of events at Westminster following the UK Government’s mini-Budget and subsequent revision of fiscal plans.

In the lead-up to the Emergency Review, the Scottish Government committed to working with the business community to address challenges around increased costs and economic disruption which included reviewing a number of regulations/requirements that were expected to start soon.

Unfortunately, our proposals to pause the introduction of short-term let licensing, in the light of the cost of living crisis, was rejected; but we encouraged Scottish Ministers to meaningfully explore if there was scope to consider how any of these regulatory impacts could be moderated to try and help reduce the burden on business.

The Emergency Budget Review states that the Scottish Government will “work with local authorities and business stakeholders to encourage, where possible, consistency in the application of short terms lets, regulations and associated fees.” The Association of Scotland’s Self-Caterers will work tirelessly to keep the government to their word, just as we are to supporting our members navigate through the legislation.

In relation to another regulatory challenge, the Emergency Budget Review also states that the Scottish Government will continue to engage with businesses and other stakeholders on legislative proposals for a Local Visitor Levy (aka the tourist tax). In line with the existing parliamentary timetable and plans, these proposals will not be fully implemented until at least 2026. However, the ASSC has a number of concerns about plans for a tourist tax at the present time and will endeavour to keep our members informed of any developments.

The Statement to Parliament by the Deputy First Minister John Swinney MSP can be accessed here: https://www.gov.scot/publications/emergency-budget-review-ministerial-statement/

The outcome of the Emergency Budget Review 2022 to 2023 can be read in full here: https://www.gov.scot/publications/emergency-budget-review-2022-23/

Press Coverage

Posted on by Fiona Campbell

Fiona Campbell, [ASSC’s] chief executive, said: “The Scottish government and councils appear to be comfortable with materially damaging a sector that represents £867 million to the Scottish economy. This draconian scheme will drive many people out of the sector.”

ASSC Briefing: Scottish Local Authority Licensing Schemes – Final Policies

Posted on by Fiona Campbell

At 26th October, 25 local councils have now finalised their short-term let licensing policies and operators are able to submit applications. 7 local councils have not – of these, some have just recently finished consultations on draft policies, while others are still consulting.

  • Aberdeenshire is not accepting applications until after January 2023, while Argyll & Bute is only accepting applications for new operators until 2023.
  • Several local authorities, including Fife and Edinburgh, have acknowledged that their polices are open to legal challenge, which is now being explored.
  • As a recent ASSC survey from October 2022 has shown, licencing continues to be a significant concern for the majority of businesses with over 70% concerned about the licence not being granted. 87% consider the scheme to be ‘burdensome’. 49% have considered stopping letting their property. A staggering 94% of those that might sell up say that their property would not be available for affordable housing.
  • Since the short-term let legislation was passed by the Scottish Government, and as we moved towards the implementation stage and licensing schemes going live across the country, the ASSC committed to supporting short-term let operators navigate through the legislation.
  • Alongside stakeholder partners, the ASSC has hosted 26 Regulation Roadshow events[1], with sessions open to operators of all types of short-term lets, as well as representatives from local authorities, agencies and anyone with an interest in the implementation of the legislation.

As councils have published their final short-term let licensing schemes, this briefing sets out the following:

  • The large variation in fees set by councils across Scotland
  • Different approaches taken by councils on planning permission
  • Examples of additional conditions set by councils which set disproportionate costs on businesses and which go beyond the policy intensions of licensing.

Read the Briefing:  ASSC Briefing – Scottish Local Authority Licensing Schemes Final Policies

[1] ASSC Regulation Roadshow Events: Supported by 25 DMOs / local authorities / trade partners; 2,290 miles travelled in person; face to face engagement with 3,298 people; and a total reach of 10,099* (in person and videos watched).