Council mulls giving cash to firms hit by new 'tourist tax'

Councillors will stage a special full meeting on Friday, December 20, where it is recommended that a consultation document is approved for implementation for 12 weeks from January.

The possible starting date for any visitor levy being implemented has also been pushed back again, to early 2027, having previously been October and then December of the previous year.

A sub-committee of councillors has met on two occasions to discuss the visitor levy proposal, while a petition against it has attracted more than 1,500 signatures.

Protesters who rallied outside the council’s HQ, Kilmory Castle in Lochgilphead, on December 13 say the  proposed visitor levy in Argyll and Bute will contribute to the “alarming trend” of pubs and cafes closing, as well as a population decline.

The draft proposal going before councillors, published on the council’s website, says small to medium size businesses would face a one-off setup cost of £1,000-£7,000 and annual cost of submitting quarterly returns of £300-£400, while micro businesses would have setup costs of £150-£1,100, with the ongoing admin cost of £100-£500 per year.

Executive director Kirsty Flanagan said: “The impact of increased costs to accommodation providers in collecting the levy could be mitigated through a financial contribution being made to each business remitting the levy. This will require financial modelling and subsidy control consideration.

“Council officers are considering a visitor levy retention scheme to propose to the council. This scheme could provide accommodation providers with funds to help offset the administrative costs they are expected to incur in complying with any visitor levy scheme, should it be implemented.

“It is important to note that feedback from the 12-week public consultation (subject to approval) will need further consideration at a special council meeting in May/June 2025.

“If the approval is granted to take forward a visitor levy scheme in late spring/early summer 2025, this will trigger the statutory requirement to enter an 18-month implementation period.

“The earliest a visitor levy scheme could be operational across Argyll and Bute would be January 2027.”

Ms Flanagan added: “The exact mechanism for billing and collecting the levy is still under discussion, including the development of a national platform through discussions with the improvement service.

“If the draft Argyll and Bute visitor levy is approved late spring/early summer 2025 more details will be provided during the 18-month implementation period.

“Argyll and Bute Council will ensure compliance, with penalties and debt recovery processes in place for non-compliance.

“Establishing a robust internal team for project management, enforcement, and data analysis will be necessary to support the implementation of the visitor levy and any supporting systems.”