West Lothian 'tourist tax' could bring in £1m as council urged to push forward
A visitor levy scheme for West Lothian could potentially bring in more than £1m a year into council coffers.
But while councillors welcomed the start of consultations agreed this week, the Tories branded the proposals a tourist tax which would hit local business and discourage visitors.
And councillors were concerned as officers offered a cautious two year path to an actual introduction following a similar decision taken by the council in Edinburgh last month.
Councillor Sally Pattle, Lib Dem, Linithgow, asked how soon the levy could be introduced. 'How urgently are we moving on this, what is the time line given this is an easy revenue stream we can capitalise on.'
The meeting heard that there are statutory guidelines on the introduction of a levy demanding clear consultation.
'Are those conversations taking place already?' asked Councillor Pattle.
Jim Henderson, Business development manager said the conversation was in the early stages.
Edinburgh last month agreed to impose a 5% levy from next summer. Glasgow, Argyll and Bute, and Aberdeen are all now in formal consultation stage. Other councils such as East Lothian, Stirling, Dumfries & Galloway, and others have been given approval for 'early engagement' work.
Many cities across Europe now have visitor levies in place.
A report to West Lothian's Executive outlined potential income based on the 298,000 visitors who stayed in the county in 2024. The most expensive accommodation, with an average spend of £100 per person per night would generate £1,342, 800 at a 5% levy. The lowest proposed levy of 2% would generate more than £500,000 in the most expensive accommodation.
In a report to the Executive, Stewart Ness, Tourism and Town Centre Manager said: 'Whilst Visitor Levy is historically considered in areas of 'over-tourism', such as Edinburgh, it may be inappropriate to argue that this applies across West Lothian where some areas might benefit from an increase in visitors.
'There could be a risk that West Lothian is 'left behind' by neighbouring local authority areas that do use the ring-fenced funds raised through the introduction of a Visitor Levy to invest in tourism in their areas."
Stressing the need to establish consultation with local businesses Mr Ness added: 'Local authorities are encouraged to conduct early engagement before entering the consultation phase .
'Although not statutory, this engagement phase is considered by the guidance to be best practice. Learning from other local authorities' areas who have undergone the process is available and this could be used to guide the process in West Lothian.
'By engaging with the tourism businesses in this collaborative fashion, it will increase understanding for the scheme amongst those who will be responsible for collecting the levy.
'By using already established networks, such as Visit West Lothian and Business Gateway, it should increase the participation rates of businesses in the engagement.'
However Conservative group leader Damian Doran-Timson criticised a move to what he called a tourist tax which could damage local business.
In an amendment he said: 'Given the importance of this tax on business and the negative impact this is likely to have on the tourist economy across West Lothian it is vital that all West Lothian Councillors are involved in the decision making on this extra tax.'
The amendment welcomed the decision to engage with those in the tourism industry and added: ' [We] trust the Council will ensure those who will have to administrate the scheme are fully advised of the processes involved and the implications.'
He told the meeting: 'This is a tax on people, a tax on businesses and a tax on individuals.'
The amendment called for any future decision on the implementation of a levy to come back to full council because all councillors would have businesses in their areas which could be affected.
The SNP group leader Janet Campbell welcomed the report but said : ' It doesn't seem to be moving forward at a pace we would have expected and, given that we are looking at more than £1m, which would almost cover the savings to be made on the community centres. It seems to be a bit of a no-brainer.'
Councillor Pattle said: ' I welcome this report, but I have concerns about the lack of urgency, I hope that we are able to move forward with this easy income strategy at pace.'
In a vote Councillor Doran-Timson's amendment demanding later decisions come to full council rather than the executive was defeated along with a similar amendment from the SNP.
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