Government stance forces city to ditch bed tax scheme

By MICHAEL BLACKLEY
Published on Monday 30 January 2012 12:19

LONG-running plans to introduce a “bed tax” on hotel guests in Edinburgh have been dropped, it emerged today.

The city council had proposed the charge as a way of raising money for promotion of the Capital. But the proposal received a cool response from the Scottish Government and leaders of the Lib Dem/SNP council administration today confirmed they have ditched the plan.

City chiefs will now focus on alternative means of raising money, including a “business improvement district” (BID) for the hospitality industry, where businesses would pay a “levy” towards the fund to promote the city.

Councillor Tom Buchanan, the city’s economic development leader, said: “We need to bring back a report to policy and strategy pointing out that we required legislation from the Scottish Parliament or Westminster Parliament to enable a tax to be charged. However, the government did give a commitment in saying that a sectoral BID across the hospitality industry could work and we are prepared to put resource into that. It will involve looking at an airport contribution, hotels contribution, universities – a range of organisations.”

When asked if he was disappointed to have to rule out a scheme that he supported, Cllr Buchanan said: “I am pleased that the government is allowing us to look at alternatives and it is better to look at alternatives that do not require additional legislation because that adds time to how long it takes to introduce something.

“There are hoops to go through [for a BID] but we need to put money into Marketing Edinburgh or we will fall behind other cities. The local authority will not have the budget to do that and we need to align what we do with investment from the private sector.”

News of the bed tax plan being dropped has been backed by representatives of the hotel industry.

Colin Paton, chairman of the Edinburgh Hotels Association, said: “It is good news that the inequitable steal from the hotel industry will not be happening.

“Regarding a tourism BID, I would be interested in seeing how that would work. The hotel industry would expect to be part of a tourism BID but we await to see who else is part of it. If it was equitable it would need to include restaurants, the airport and taxi drivers.

“We would also need to know what Marketing Edinburgh propose that the money is spent on because it is an investment.”

However, Councillor Andrew Burns, leader of the Labour group on the council, said: “A bed tax has the backing of Labour, the Lib Dems, the Greens and the SNP – over 75 per cent of the council – and could really assist in sustaining our festivals and events.

“It is therefore extremely unfortunate that Fergus Ewing has refused to engage with the council on this matter, and he has quite clearly overruled his SNP council colleagues without any real discussion or debate.

“The Scottish Government should be working with local government. Instead they’ve sided with the hotel lobby, chosen big business over local democracy.”

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14

Harry Palmer

Thursday, February 16, 2012 at 02:47 PM

Another example of the Meglomania of the SNP. The local group on the council want something. The Big Boy at the parliament say NO so the council group drops it. There is no point voting SNP in May. They don't have Edinburgh's best interests at heart. They have Mr Salmond's best interest at heart.

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13

Monday, January 30, 2012 at 07:54 PM

I wish they would get rid of my bed tax, my duvet is all blood stained. pigswill_trumpet.

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12

Irritatingly Intelligent Chauvinist

Monday, January 30, 2012 at 05:29 PM

Are we trying to encourage tourists to come to Edinburgh or not? This city is expensive enough without making it more so. I could, but have made a point of not visiting Rome, because it is so expensive . The world is a big place with plenty of places to visit and cost is a factor most consider when choosing their destination . I would certainly be disappointed if after forking out to come to Edinburgh, my stay consisted of a tour of a building site and additional tax added to my hotel room for the pleasure.

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11

I'd rather be on holiday

Monday, January 30, 2012 at 04:55 PM

What I've never understood about a bed tax is that although it aims to tax tourists staying in hotels in Edinburgh, it's not just tourists who stay in hotels, even during the summer months. There are also business people, academics, politicians etc. The assumption behind the proposed tax seems to be that the only guests in hotels are tourists. I've never heard of any proposals to differentiate between the different types of guests.

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10

Dave scotland

Monday, January 30, 2012 at 04:46 PM

What is wrong with a tourist bed tax ?. USA have local taxes. Venice, Verona have a tourist tax. Why not Edinburgh. The tourists will still come. It would help with the costs of running the festivals. Why should the hotels , pubs, shops etc benifit and not the council

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9

I AM THE OPERATOR OF A POCKET CALCULATOR

Monday, January 30, 2012 at 04:13 PM

6 - "Edinburgh Council is a dysfunctional organisation that no longer meets its legal obligations." agreed. Full of dross that cant be sacked no matter how rubbish they perform. Rotten from head to tail.

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8

edinburgh100

Monday, January 30, 2012 at 01:56 PM

Shouldnt Edinburgh Councilors focus on ensuring the services that they are mandated to provide are fit for purpose. Rather than thinking about Bed taxes and Business Parking Tax shouldnt they be ensuring the roads pavements etc are fit for purpose. Instead of trying to build a cafe culture shouldnt they be ensuring the bins are emptied. Instead of the tram faisco shouldnt they have been ensuring that the statutory work dept was fit for purpose. Instead of looking at puting a big ferris wheel in Portobello they might have got BAA Edinburgh to fix the road to the airport so its fit for purpose. There are many small and important things that the council should be ensuring are completed and checked up on and constantly monitored if all the small things are in place then you wouldnt need a bed tax a business develpoment district parking bay taxes etc.

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7

nickedinburgh

Monday, January 30, 2012 at 01:45 PM

Just how many of the nasty idiots like Carl Williams 1 are willing to stand up and put their own time and ideas where their big mouths are by standing for election themselves if they think they could do better? No? Thought not. Losers.

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6

claymore's edge

Monday, January 30, 2012 at 01:29 PM

What does it say about Edinburgh as a city that it doesnt have the ability to introduce a bedtourist tax, and Rome can?! Rome has a bed tax that works quite efficiently. Also Venice has introduced a tourist tax. Again in a culture as corrupt as the Italian state, it begs the question, what is Edinburgh council doing with council tax payers money?!-------------------------------------------------------------------------------------I predict Edinburgh Council will collapse into maladministration within 2 years , and it will need to be annexed to create a Greater Lothian Council taking in West Lothian council and East Lothian council.------------------------------------------------------------------------------------And we still havent heard back from the local government ombudsman yet over investigations into massive malpractice at the council.------------------------------------------------------------------------------------------Edinburgh Council is a dysfunctional organisation that no longer meets its legal obligations.

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5

Account deleted

Monday, January 30, 2012 at 01:23 PM

Quite right. It was just another extortion bid from the lying thieving scummy council.

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4

Jams

Monday, January 30, 2012 at 01:06 PM

Perhaps the headline should read "CEC fail to do their homework and waste time, money and effort on yet another initiative." ......................... Seriously, from the story I draw two conclusions - 1. CEC did not have the legal authority to introduce this tax. .............. 2.The Lib Dem SNP coalition running the city failed to sound out their chums in the SNP led Scottish government before making their great announcements and probably spending half the money as well. ................................................ I also noticed a story on the BBC regarding Jenny Dawe's announcement that the council were looking to spend their £2million pound SURPLUS. How doe s a city up to its ears in debt manage to generate a Surplus????? Unless of course it was simply blatant electioneering by the Fib-Dems?

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3

Rugal

Monday, January 30, 2012 at 12:58 PM

You can't close down BlindCraft again Tom so which budget will be cut this year to fund Cardownies drunken street party and festivals?

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2

Towering Genius

Monday, January 30, 2012 at 12:55 PM

Excellent decision.

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1

SlyFifer

Monday, January 30, 2012 at 12:26 PM

I support the concept of a 'bed tax' and confirm that this is policy of the Scottish Democratic Alliance of which I am a member and soon to be candidate for the forthcoming local elections. If elected I will ensure that this issue is raised again.

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