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Tourist tax will be ‘death knell' for businesses, former minister warns
Tourist tax will be ‘death knell' for businesses, former minister warns

STV News

time21-05-2025

  • Business
  • STV News

Tourist tax will be ‘death knell' for businesses, former minister warns

Plans to introduce a tourist tax in the Highlands will be the 'death knell' for many businesses, a former minister has warned. Fergus Ewing said the council's plans for a visitor levy were 'outrageous and poorly designed'. The SNP MSP for Inverness and Nairn said the tax was 'uncollectable' and would lead to a 'fiasco'. Highland Council has been consulting on proposals for a 5% visitor levy that it says could generate at least £10 million for the region. It says the cash could be used to help pay for improvements to infrastructure, including on its roads. The Visitor Levy (Scotland) Act was passed last year and allows councils to apply a tax on overnight stays. But it has been opposed by chambers of commerce in the area, as well as trade bodies representing hotels. Appearing before Parliament on Wednesday, Ewing called for a U-turn. He told public finance minister Ivan McKee: 'All four ministers know I have opposed this tax from the outset and voted against it. 'It is a percentage tax upon which there will be additional VAT payable – two sets of tax. 'The minister knows that I have argued that this is uncollectible, is going to lead to a fiasco, that nobody has worked out how to collect it, that the IT systems that will be necessary to administer it do not exist. 'Does the minister agree with me that this may cause the death knell, the death knell, of many hard-working, excellent bed and breakfast establishments in the Highlands and throughout the whole country, and he has been told this again and again. 'So will he call a halt to this outrageous and poorly designed tax?' McKee said it was up to local authorities whether they implemented a tourist tax but added that he would meet with Highland Council to discuss its plans. He went on: 'The tax is obviously in legislation, as the member is aware, and Edinburgh City Council will be the first council intending to take the tax forward next year, and as I say, we will continue to engage with other councils as we learn from that implementation, to understand what their plans are in their own local areas.' Douglas Ross, the former Scottish Tory leader, said the policy would impact Highland residents who would have to pay for overnight stays in different parts of the region. He called for residents to be exempt from the policy from the outset. McKee said he was 'well aware' of the concerns raised by trade bodies but reiterated that it is up to the Highland Councils whether to implement the policy. He said the Visitor Levy (Scotland) Act gave local government 'the most significant new powers' since devolution. 'Many businesses and business organisations absolutely recognise the value that the levy can bring,' he added. 'The levy will help, therefore, sustain and enhance the visitor experience, making destinations more attractive and competitive.' Highland Council has been approached for comment. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country

Scrapping of massive wind farm is warning about over-reliance on renewables
Scrapping of massive wind farm is warning about over-reliance on renewables

Scotsman

time10-05-2025

  • Business
  • Scotsman

Scrapping of massive wind farm is warning about over-reliance on renewables

Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... At Holyrood the other day, Fergus Ewing – who else, on the SNP benches? – threw John Swinney an awkward question. Did he accept that, to provide stability for the National Grid as dependence on renewables grows, 'the only option remaining on the table is gas'? Mr Ewing referenced Spain and Portugal where the rapid transition to renewables is, rightly or wrongly, being held accountable for nation-wide blackouts which will cost billions to put right and avoid a recurrence. Advertisement Hide Ad Advertisement Hide Ad It was clearly not an issue which had exercised Mr Swinney's intellect and he mumbled a mysterious reply: 'There is a wider solution to the important issue which Mr Ewing puts to me, which has to be addressed to deliver security and safety for the population of Scotland'. This retreat into a meaningless platitude might have appeared even less satisfactory a couple of days later. By then, the Danish multinational, Ørsted, had abandoned plans for a windfarm in the North Sea which was designated to supply energy to a million homes, when the wind is blowing. Lisa Nandy, now UK Culture Secretary, viewed models of wind turbines at the Orsted Visitor Centre in Grimsby in 2022 (Picture: Christopher Furlong) | Getty Images Wake-up calls Ørsted had taken its decision, as tends to be the way with multinationals, on hard-headed financial grounds. The Hornsea4 project no longer made economic sense because of soaring costs in the international supply chain and 'increased execution risks'. Advertisement Hide Ad Advertisement Hide Ad This is not the last project to be ditched and neither is it the first. Last month, the Australian multinational, Macquarie, pulled the plug on the only offshore windfarm licensed off the west coast of Ireland. Seventy million euros in community benefit which had been negotiated in Connemara disappeared with it. These and other project cancellations can be dismissed as straws in the wind, albeit rather large ones. Or they can be taken as wake-up calls which confirm that issuing licences does not equate to delivery of projects, and that this is one more reason not to pursue a one-dimensional energy strategy. There are plenty warning signs in the way the Scottish offshore wind industry is proceeding. Most major developers, including Scottish Power and SSE, have signed a letter which comes close to threatening an investment strike if they don't get their own way on zonal pricing which, they say, would force them to sell power generated in Scotland more cheaply, thereby frightening off investors. Advertisement Hide Ad Advertisement Hide Ad Ruthless decisions Since cheaper power is a trade-off on which Scottish support for renewables largely depends, this is a tricky one for the Scottish Government which has conspicuously failed to support zonal pricing. Whatever the outcome, which we should know soon, the mere threat demonstrates the fragility of an assumption that all these ScotWind projects will actually happen. Just as with Hornsea4 and Connemara, these decisions will be taken ruthlessly by multinational operators with lots of options to choose from. There will be no sentiment involved and issues like zonal pricing and transmission charging will influence not only their decision-making but also the cost to government and consumers of incentivising them to stick with their UK projects. The more dependent energy policy is on offshore wind and other renewables, the more vulnerable it will become to ransom demands. Once again, every element of common sense points towards keeping options open by pursuing a balanced energy policy which also includes key elements of baseload – nuclear and gas – as well as pushing forward on hydro and other forms of storage. Back to front Unfortunately, it is not possible to put Humpty back together again and approach our energy transition in a more rational fashion. Everything has been done back to front. Licenses were sold cheap before the barriers to project delivery were addressed. Targets were set with too little regard for practicalities. Battle lines were drawn between renewables and baseload generation when the two must be complementary. Now the risks are emerging of tripping over these contradictions. Advertisement Hide Ad Advertisement Hide Ad Democracy is one of the casualties. I noticed that resistance is growing to a massive converter station at Fanellan, near Beauly. But what is the point? Much of the ScotWind programme is predicated on power converging on the site from north, west and east. It is inconceivable that it will not be pushed through because so much else depends on it. Yet there was at least a decade to plan all this and get it right by giving a limited number of projects certainty and matching them to grid investment. Instead, we have vastly expensive infrastructure being embarked on without even the certainty of projects materialising. That's before you get to the Dutch auction for subsidy called Contract for Difference which will involve ScotWind projects competing against one another. What a way to run an energy transition! Swinney right about one thing The main players have been a regulator, Ofgem, which has far too much power; two governments which, while all this was evolving, behaved as bitter competitors rather than essential partners in a shared venture; and the multinational companies which hold the fate of projects in their hands. That is a mess which the incoming Labour government inherited and now has to work its way through. I have always thought they made additional rods for their own backs by setting targets which are not within their power to deliver on, as Ørsted just reminded them, as well as irrational negativity towards domestic oil and gas. There are now myriad reasons, globally and nationally, to reassess. Advertisement Hide Ad Advertisement Hide Ad Reverting to Fergus Ewing's question, one very straightforward line of reasoning needs to be admitted to by both Scottish and UK governments. We will need gas for a long time to come so it makes sense to produce in the North Sea rather than increase reliance on imports. Norway understands that. Why can't we?

SNP warned of 'catastrophic consequences' for Scottish economy if Rosebank oil plans shelved
SNP warned of 'catastrophic consequences' for Scottish economy if Rosebank oil plans shelved

Scotsman

time01-05-2025

  • Business
  • Scotsman

SNP warned of 'catastrophic consequences' for Scottish economy if Rosebank oil plans shelved

Concerns have been raised about the financial impact of two key North Sea oil and gas developments not proceeding. Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Scotland's acting net zero secretary has been warned that two controversial North Sea fossil fuel developments being blocked could have "catastrophic consequences" for the Scottish economy. Equinor and Ithica, behind the Rosebank oil project, and Shell, bringing forward the Jackdaw gas field proposals, have been forced to reapply for environmental consent following court action that stated developers must take into account the emissions produced from burning the oil and gas contained in the sites. Advertisement Hide Ad Advertisement Hide Ad Campaigners' successful court action means fossil fuel developers must take the emissions from burnt oil and gas into account | Andrew Milligan/PA Wire The UK government is poised to publish updated environmental guidelines ahead of the reapplications for environmental consent. Sir Keir Starmer's government has pledged to ban new North Sea oil and gas licences but it is possible Rosebank and Jackdaw could be classed as existing licences, which Labour has committed to keep intact. But an outspoken SNP backbencher has claimed that the Scottish economy could be in line to lose hundreds of millions of pounds if the developments do not proceed. Advertisement Hide Ad Advertisement Hide Ad Fergus Ewing, who has a track-record of speaking out in favour of fossil fuels, told MSPs that there was a risk 'Scottish funding may reduce by several hundred million pounds if Rosebank and Jackdaw are not consented'. Fergus Ewing | PA He added: 'The reasons are very simple. Those companies have invested around £2bn because they've obtained the consents necessary, they've complied with all the regulations and now they find that the process has been changed mid-case.' Mr Ewing added: 'The goalposts may be moved. If that happens, there will be a fiduciary duty on the directors of all the companies to recover their losses, which will amount to the money they paid out - £2bn - plus loss of profits. Advertisement Hide Ad Advertisement Hide Ad 'If that happens, isn't the Scottish Government worried that it is inevitable, whether through Barnetisation or otherwise, that the Scottish taxpayer will pay a heavy price. Should we not, therefore, support Rosebank and Jackdaw to avoid those catastrophic consequences?' SNP acting net zero secretary, Gillian Martin, pointed to her government's 'support for a just transition for Scotland's oil and gas sector'. Ms Martin suggested her government's long-delayed energy strategy has been further held up by the court action, despite telling The Scotsman in November it would be agreed by John Swinney's Cabinet by the end of 2024. The current energy strategy dates back to 2017. Advertisement Hide Ad Advertisement Hide Ad Ms Martin said: 'We continue to call on the UK government to approach decisions on offshore oil and gas in a rigorously evidence-led case-by-case basis based on climate compatibility that is robust and domestic energy security as key considerations.' At First Minister's Questions on Thursday, Mr Swinney was accused of turning his back on the North Sea oil and gas sector. Meanwhile Mr Swinney accused Scottish Conservative leader Russell Findlay of 'barefaced dishonesty' over his party's U-turn on net zero. Mr Findlay highlighted the closure of the Grangemouth oil refinery and accused the Scottish Government of attempting to 'shut down all oil and gas production' when in power with the Scottish Greens. Advertisement Hide Ad Advertisement Hide Ad The Scottish Conservative leader stressed Scotland 'will now need to import all of our petrol, diesel and other fuels'. He said: 'This is the price of the SNP's and Labour's hostility towards oil and gas. 'Before more damage is done, will John Swinney drop his Government's presumption against new oil and gas exploration?' Advertisement Hide Ad Advertisement Hide Ad The Scottish Government has delayed the publication of its new energy strategy by two years, with a draft version touting a potential policy of a presumption against new drilling. Mr Findlay accused the First Minister of bringing 'dangerous cranks', the Scottish Greens, into government, who he claimed want to 'shut down all oil and gas production'. Pointing to the closure at Grangemouth, Mr Findlay said: 'The greatest blame lies with the government that turned its back on Scotland's world-leading and innovative oil and gas industry.' But Mr Swinney insisted the economy must adapt to the 'reality' of the climate crisis. Advertisement Hide Ad Advertisement Hide Ad The Scotsman previously revealed Mr Findlay now opposes the Scottish Government's net zero target, warning it risks 'economic sabotage'. Mr Swinney said: 'I know the Conservatives are involved in a pivot on net zero and they in fact want to deny the climate challenges that we face.' The First Minister reiterated that any oil and gas licensing decision 'must be the subject of a climate compatibility assessment' - a policy pushed by former Conservative prime minister Boris Johnson. Advertisement Hide Ad Advertisement Hide Ad He said the Scottish Government will 'support industry to transition to that reality' of transition required in the climate crisis. But Mr Findlay insisted 'we are being honest with the public about the costs of net zero'. Pointing to Mr Swinney, he added: 'They are not.' The Scottish Tory leader added: 'Instead of learning lessons from the SNP's harmful approach to oil and gas, the Labour government is copying it. Labour's copycat approach will cost more Scottish jobs, it will increase bills and it will do more to harm the environment by importing energy from overseas.' Advertisement Hide Ad Advertisement Hide Ad Mr Swinney pointed to the Scottish Tory leader voting in November to support Scotland's 2045 net zero target remaining intact and then highlighted Mr Findlay's comments to The Scotsman that it was a 'refreshing outbreak of honesty' for his UK leader Kemi Badenoch to call for net zero targets to be scrapped. The First Minister added: 'I call it barefaced dishonesty in front of the people of this country.' Mr Swinney accused the Tories of being happy 'to vote for climate change targets one minute and press this Government to act on those climate change targets and then desert the field when the going gets tough'.

Fergus Ewing slams 'misguided' SNP plan to cut speed limit on main roads out of Inverness
Fergus Ewing slams 'misguided' SNP plan to cut speed limit on main roads out of Inverness

Press and Journal

time30-04-2025

  • Politics
  • Press and Journal

Fergus Ewing slams 'misguided' SNP plan to cut speed limit on main roads out of Inverness

Highland MSP Fergus Ewing is demanding a meeting with his SNP colleagues in government to stop plans for a 50mph speed limit on main roads from Inverness to Aberdeen and Perth. The SNP rebel turned his ire against the Scotland-wide proposal for a 10mph speed limit drop for car drivers on single carriageway roads, which covers much of the A96 and A9. He wrote to Transport Secretary Fiona Hyslop requesting a meeting to discuss the policy – and urging her to ditch it completely. His intervention comes after we revealed almost 90% of P&J readers who responded to our poll last month are against the plan. In the letter seen by the P&J, Mr Ewing states his Highland constituents will be 'most impacted' by the proposals, due to having very few miles of dual carriageway. 'I would urge you to make a very early announcement that they will be abandoned, in the face of overwhelming opposition', he told the transport secretary. Speaking to the newspaper, the Inverness and Nairn MSP said the proposals came 'wholly out of the blue'. He added: 'A staggering 90% of P&J readers have said no to this plan. 'Many argue that far from improving road safety, it will risk further incidents through causing driver frustration leading to some taking risks when not safe to do so.' The SNP MSP claimed the proposals would 'discriminate' against those in the Highlands, due to the lack of dual carriageway sections, and in the north-east. 'The SNP government have put forward many proposals which they have had to scrap, and which I have, speaking out against the party line, opposed,' he added. 'These include banning fishermen from swathes of the sea, the deposit return scheme, the wood stove ban, absurd heat pump targets and recently the target to cut road miles by 10 per cent. 'This is another misguided proposal which should join those others in the burgeoning policy bin in St Andrew's House.' We asked our readers a simple yes or no question – whether they agree with the plan? Almost 90% of those surveyed, 555 people, voted No with only 63, just over 10% supporting the proposals. Government roads agency Transport Scotland previously said the 'significant policy shift' will save lives and reduce serious injuries. Under the plans, car drivers on single carriageway roads could face a 10mph reduction in speed limits, from 60mph to 50mph. But speed limits for HGVs would rise on the same roads from 40mph to 50mph and on dual carriageways from 50mph to 60mphs. More than 19,000 responses were received following a public consultation on proposed changes to speed limits in Scotland. A Transport Scotland spokesman said: 'The Scottish Government has consulted on these issues and is considering the responses received, before publishing recommendations later this year. 'The Cabinet Secretary for Transport has received Mr Ewing's letter and will respond in due course.'

Scottish ministers consider gull controls amid fears 'people may die'
Scottish ministers consider gull controls amid fears 'people may die'

The National

time24-04-2025

  • Politics
  • The National

Scottish ministers consider gull controls amid fears 'people may die'

The news comes after SNP MSP Fergus Ewing raised concerns about the impact aggressive seagulls are having in Moray – and suggested a public inquiry would be needed should one of the birds kill a person. As it stands, all UK gulls are protected under the Wildlife and Countryside Act 1981, which makes it an offence to kill or injure the birds, as well as criminalising destroying their eggs or nests. But pressure has been building on the Scottish Government to allow controls of seagulls after one of the birds reportedly attacked an elderly woman in Moray, causing her to fall over and break her leg – before attacking her again after returning home from hospital. READ MORE: John Swinney accuses Scottish Tories of trans rights U-turn as old comments resurface Speaking at Holyrood on Thursday, Ewing asked whether NatureScot could be directed 'to issue licences to control the birds and help prevent such injuries'. He said: 'All too often in Scotland, where there is a serious injury or death which could and should have been avoided, we have a public inquiry, often costing millions of pounds, followed by a report to ministers who will say, we must learn lessons from this. 'Well, presiding officer, would it not be better to have taken the necessary action to prevent the injury or death ever occurring, where that risk is clear, direct, and foreseeable, as in this case. 'And given the risk of serious injury and death, will the minister now take the necessary action with the Section 11 order under the Natural Heritage (Scotland) Act 1991 before it is too late?' Agriculture Minister Jim Fairlie (above) said in response: 'I very much recognise the points that Mr Ewing has made. 'To reduce the risk of health and safety concerns of gulls, NatureScot will be considering an area-wide gull licence to deal with the immediate concerns of the upcoming nesting season for the potential health and safety reasons. 'And I understand that there is an issue around what the potential issues are that Mr Ewing has highlighted, and I've made that very clear to NatureScot. 'But gull numbers are in decline and the longer-term solution cannot be further population reductions where mitigation action can be taken, and that requires collective action. 'So we will work together through a summit that I will hold later this year with key partners, including local authorities, to ensure that appropriate measures are in place ahead of next year's breeding season.' He added that "people standing at the side of a pier throwing chips out" would only make the issues worse. READ MORE: 'You're being had': BBC audience urged to 'get angry' over Scottish energy crisis The remarks from the minister represent a shift in position compared to last month, when Fairlie told Tory MSP Douglas Ross that while he understood that gulls could be a problem, 'killing them and giving licences out willy-nilly is not the answer'. Speaking on Thursday, Ross said he had received a 'Freedom of Information response from NatureScot, when I had asked how many injuries they had recorded by gull attacks in each of the last five years, and they have said in their response that they do not hold that information'. He added: 'How can they be taking decisions on these licences when they don't know the impact? 'And I've also put this to the minister before, they are refusing licences at the moment for reasons such as businesses could give customers umbrellas to protect themselves by walking in and out, and they won't be attacked by gulls if they've got umbrellas. Does he agree that that is utter madness and NatureScot have got to treat this as a serious issue?' Fairlie said: 'I have raised these points with NatureScot. We have come to the conclusion that there will be actions taken this year in order to make sure that we deal with the immediate problem of this year, but there will be a summit that will allow us to make sure we take the appropriate action to preserve the status of the gulls, but at the same time, make sure we can live beside them.' There have not been any reported fatalities in the UK from a seagull attack, although in 2012 the London Evening Standard reported that an 80-year-old man had died from a heart attack during an encounter with a flock. He had disturbed a nest of chicks while trying to clean bird droppings from the roof of his garage in Anglesey, north Wales, the report said.

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