In a letter dated 18th September 2025 to the STA, The Scottish Government confirmed that the Presiding Officer had ruled the proposed amendment to the Housing (Scotland) Bill out of scope, meaning it cannot proceed during this parliamentary session.
The amendment had been worked up with direct input from the ASSC and the Minister for Public Finance, Ivan McKee, has formally thanked the tourism sector more widely for its constructive engagement.
We believed the Housing Bill could have been the right legislative vehicle to reform the Visitor Levy because it already contained taxation measures affecting overnight accommodation, such as Council Tax on second and empty homes and the classification of self-catering properties for Non-Domestic Rates. In this context, the amendment sought to align the levy with other accommodation-related taxes by introducing a fairer fixed nightly rate model, shifting liability to the visitor, and ensuring consistency and administrative efficiency across local taxation systems.
While existing legislation already allows councils a range of options, Ministers recognise that some areas of Scotland are seeking greater flexibility in how the Visitor Levy is applied. The Government is therefore considering providing additional powers, including the ability for local authorities to adopt a single flat rate or tiered flat rate model alongside the current percentage-based approach.
The Government has committed to keeping stakeholders updated as this work develops and to continuing collaboration to ensure the levy delivers meaningful outcomes for councils, communities, and businesses.
The ASSC will continue to work with the Scottish Government to identify other routes to reform.