UNIONIST councillors in Edinburgh have turned down “ambitious” SNP proposals for a 7% tourist tax which would have seen £20 million a year put towards tackling the city’s housing crisis.
Elected members on the council’s policy and sustainability committee met today to sign off on the draft visitor levy scheme which – if given the green light by the full council next week – will see a 5% tourist tax introduced.
This would be applied to those staying in hotels, bed and breakfasts, self-catering accommodation, campsites, and caravan parks. Council leader Jane Meagher has said the cash raised could give the Scottish capital its “single biggest injection of new funding this side of the millennium”.
SNP councillors put forward plans on Friday for a higher levy of 7% which they argued is more in line with comparable European city destinations, like Porto and Berlin.
The party group said it put forward the “most ambitious” plan in terms of addressing the city’s housing needs, as their proposals would have seen £20m from the levy each year go towards addressing the capital's housing emergency. Councillors say this would have added another 195 units (120 social and 75 for midmarket rent) annually.
But Labour, LibDem and Tory councillors voted together on the committee for the 5% tax and a much lower spend on housing of £5m a year.
SNP group leader Simita Kumar (below) said: “The SNP put forward by far the most ambitious plan in terms of using Visitor Levy revenue to address a housing emergency in Edinburgh which is intimately tied up with our city’s status as one of Europe’s most popular cities for tourists.
“Our city is beautiful and abundant in culture, so it’s no wonder that so many people from all over the world want to visit it, but that popularity comes with consequences for the people who live here, not least those working in the tourism and hospitality industries, who are often lower paid and struggle with high housing costs.
“We need to use that to its fullest extent. The unwillingness of Labour and their LibDem and Tory allies to do that shows their lack of commitment to tackling the greatest structural challenge facing our city – the lack of affordable housing.”
The City of Edinburgh Council declared a housing emergency in November 2023 due to significant pressures on the city’s housing market, including homelessness rates and housing costs.
In November 2023 there were around 5000 homeless households in Edinburgh being supported in temporary accommodation. These households account for around 7000 individuals, with around 1300 of the overall homeless population living in accommodation that is classed as unsuitable.
The tourist tax plan will go to a final vote at a special meeting next Friday, January 24.
Meagher said the proposed levy is a “once-in-a-lifetime opportunity to sustain and enhance Edinburgh’s position as one of the most beautiful, enjoyable destinations in the world”.
The levy would be applied on bookings made after May 1 this year for accommodation stays from July 24, 2026.
