Edinburgh’s council has approved a 5% tourist tax, rejecting higher rates aimed at addressing the housing crisis. The decision has sparked mixed reactions.
During a recent meeting, the council’s policy committee discussed the tax. They heard from groups like Living Rent, who argued for a higher charge. They pointed out that many workers in the tourism sector struggle to find affordable housing.
The SNP wanted to raise the tax to 7%, claiming it could generate £16 million for affordable homes. The Greens pushed for an 8% rate, suggesting it could bring in £70 million over three years.
On the other hand, the Conservative group argued for a lower tax. They felt the VAT impact wasn’t considered. The committee, led by Councillor Jane Meagher, decided to stick with the original 5% proposal.
If all goes well, the tax could start by May. The council is also considering a longer transition period for the industry. There are concerns about potential legal challenges, which could delay the tax’s introduction.
Councillor Meagher expressed confidence in the decision, stating they had listened to various voices. The final say will come at a full council meeting next week.
After the decision, SNP leader Councillor Simita Kumar criticized those who opposed the higher tax. She emphasized the need to address the housing challenges faced by residents, especially those in lower-paid tourism jobs.
