ɬ Council has decided to pause the possible implementation of a visitor levy.
At the meeting of the Full Council today (Wednesday 24 September), it was decided to delay the potential introduction of a levy and for the leader of the council to seek clarity from the Scottish Government on possible changes to the visitor levy legislation in relation to a single flat rate or tiered rate instead of a percentage rate as is currently allowed.
The council also agreed to lobby the UK Governments on concerns from businesses about going over the VAT threshold and asked officers to explore the possibility of local exemptions.
With various council areas having either introduced a visitor levy or considering one to raise investment for their visitor economies, the council took the decision in December 2024 to give people in ɬ the same opportunity and give their views on introducing a visitor levy for the area.
The council ran a 12-week public consultation on a draft visitor levy scheme. This was based on 5% levy (working figure) to apply all year round, taking into consideration the required national statutory exemptions, but with no additional discretionary exemptions at a local level.
The consultation gathered views from residents, businesses and visitors, and received a high level of feedback, with 3,352 responses. The surveys were further informed by four webinars and ten drop-in events held across the region.
The consultation findings showed that 57% of survey respondents did not support a visitor levy, 52% said if there was a levy there should be a cap on the number of accommodation nights that it should be paid, and 59% did not agree with the council’s proposed position on local exemptions as set out in the national legislation.
Council Leader, Councillor Jim Lynch, said:
“Thank you to everyone who gave us their views in the visitor levy consultation. We received a huge amount of information and a lot of understanding behind the views that people have. We have fully considered the consultation findings and taken the feedback into account.
“Given that the public have concerns and there is potential for legislative change, we have taken the decision to put the possible introduction of a visitor levy on hold.
“Local authorities in Scotland are facing huge financial pressures and ɬ is no exception. We therefore need to be realistic that in the absence of additional revenue from a visitor levy, the council may have no other choice but to make difficult budgetary decisions – many of which could affect essential services that currently support the quality of life for residents and enhance the experience of visitors.”
An update report will be brought back to a meeting of the Full Council no later than January 2026 to advise of progress.
