A number of leading Scottish tourism organisations state that the Scottish Government’s amendments to their short-term let licensing regulations do not go far enough in addressing business concerns.
This intervention comes ahead of the Minister for Housing Paul McLennan’s appearance at the Scottish Parliament’s Local Government Committee on 25th June – where he will provide evidence on the licensing 2024 Amendment Order – as well as Scottish Government commitments to foster a ‘New Deal with Business’ and reduce red tape.
The Association of Scotland’s Self-Caterers (ASSC) has led calls to get the regulations back on track, providing policy solutions and engaging directly with Ministers and Cabinet Secretaries, as well as through the Implementation Advisory Group (IAG).
Indeed, the IAG submitted comments on 17 recommendations it thought should be considered by the Scottish Government in respect of issues raised to date in the operation of the legislation – but only 3 were addressed in the Order.
Moreover, the ASSC warned that the Order provided little more than minor tinkering around the edges rather than the positive change necessary for a key component of Scottish tourism that boosts the economy by £1bn per annum. [1] In other key evidence to the Local Government Committee:
- VisitScotland: “…there continues to be concerns within the sector about the scheme’s operation, and we do not think the amendments in this Order will ameliorate all those concerns.” [2]
- Scottish Tourism Alliance: “…it remains the case that a far more significant review of how the Short-Term Lets Licensing Scheme is operating in practice is needed if we are to safeguard these businesses and to protect and enhance the visitor accommodation offer that people can access when they stay in Scotland.” [3]
- Scottish Bed & Breakfast Association: “[STL licensing] is by far the worst example of policy implementation we have ever encountered…these limited “technical updates” are too little, too late and do not in any way address the more fundamental flaws of the STL Licensing legislation.” [4]
The ASSC had called for the Order to be pulled to allow for meaningful revisions to take place, including the decoupling of licensing and planning regimes which remains the biggest obstacle to the successful implementation of licensing, and for guidance to be re-written.
Recent survey work by the ASSC showed 77% of businesses reported a negative or extremely negative impact on business operations as a consequence of the Scottish Government’s STL regulations. The self-catering sector finds itself in a precarious position not only due to these regulations but changes to the Furnished Holiday Letting tax regime and the proposed visitor levy, combining with wider cost-of-living pressures.
Fiona Campbell, Chief Executive of the Association of Scotland’s Self-Caterers, said:
“Key Scottish tourism stakeholders are united in saying these amendments are insufficient to address business concerns. Nobody would expect the Scottish Government to adopt every industry recommendation but what is on the table is a paltry offering. It is akin to re-arranging the furniture on the deck of RMS Titanic whilst it sinks.
Sadly, commitments to cut red tape have bypassed a sector facing irreversible damage. We can’t keep kicking the can down the road and hoping for the best when small and micro businesses urgently need help now.
All licensing is doing is pushing up the costs of holidaying in Scotland, squeezing the supply of accommodation for our world-leading Festivals while generating a flourishing black market, damaging local businesses for no material benefit, and further legal challenges cannot be ruled out.
Our message to government is clear: there has to be real, tangible change otherwise more small indigenous Scottish businesses will continue to close, it is as simple as that.”
Notes to Editors:
[1] ASSC written evidence to the Local Government Committee, May 2024.
[2] VisitScotland written evidence to the Local Government Committee, May 2024.
[3] Scottish Tourism Alliance written evidence to the Local Government Committee, May 2024.
[4] Scottish Bed & Breakfast Association written evidence to the Local Government Committee, May 2024.