The Association of Scotland’s Self-Caterers (ASSC) has submitted a detailed briefing to the City of Edinburgh Council in advance of the forthcoming Housing, Homelessness and Fair Work Committee meeting on 2nd December, entitled Legal alignment of the proposed Housing and Tourism Mitigation Fund (HTMF) with the Visitor Levy (Scotland) Act 2024.
The briefing, titled Legal alignment of the proposed Housing and Tourism Mitigation Fund (HTMF) with the Visitor Levy (Scotland) Act 2024, provides a structured assessment of whether the planned £5 million per annum fund sits within the legal powers granted to local authorities under the Act.
The assessment concludes that, as currently framed and publicly described, the HTMF risks falling outside the statutory purpose of the legislation. The Act requires that all levy proceeds must be used for facilities and services that are substantially for, or demonstrably used by, visitors. Housing mitigation and residential supply interventions are inherently resident-facing and cannot be assumed to meet this threshold without clear and specific evidence of direct visitor benefit.
It highlights the potential legal and reputational risks associated with proceeding under the current structure, including exposure to formal challenge, erosion of trust among levy-contributing businesses and the danger of the levy being perceived as a general taxation mechanism rather than a ring-fenced visitor investment tool.
The ASSC will continue to advocate for proportionate, evidence-based and legally sound implementation that protects both the industry and the communities it supports.