Seòmar agus comataidhean

I welcome the minister’s comments on the issue. I have met many in the sector who have pointed out to me how the bill, as drafted, could complicate matters in this regard. I think that it is important that we have in place the exemptions that are in amendment 37 and that they do not get left to guidance and variation.

I am happy to take up the minister’s offer of a meeting ahead of stage 3. I hope that the bill can be amended. As I said, some of the guidance for exemptions exists, such as for short-term lets, but councils do not necessarily know whether they can use that power. I am concerned that the bill would lead to interpretation council by council across Scotland among those that decide to introduce a visitor levy.

I will not press amendment 37 but will bring back a new amendment at stage 3, I hope.

Amendment 37, by agreement, withdrawn.

Amendment 7 moved—[Tom Arthur]—and agreed to.

Amendments 38 and 39 not moved.

Section 10, as amended, agreed to.

After section 10

Amendment 19 not moved.

Section 11—Scheme to impose levy

Amendments 40 and 41 not moved.

Section 11 agreed to.

Section 12—Prior consultation on scheme

I welcome that. There may be another amendment for stage 3 on who from tourism representative bodies in a wider council area would then be involved in that decision making on expenditure. I am happy to take that on board.

Turning to the other amendments in the group, I welcome many of Sarah Boyack’s amendments. However, other council areas, though perhaps not Edinburgh and Highland, which have both long advocated for a tourist levy, are concerned about it being established. We need to take into account the many concerns that have been expressed about the set-up period and the systems that businesses would use. Therefore, we do not support amendments 21 and 25, but we support Sarah Boyack’s other amendments in the group.

I will not be moving amendment 46, convener.

In light of the minister’s comments, I will not move amendment 46.

Amendment 46 not moved.

Amendment 22 not moved.

Section 13 agreed to.

Sections 14 to 16 agreed to.

Section 17—Use of net proceeds of scheme

I support all the amendments in the grouping, which goes to the heart of who will be impacted by the bill, which is businesses the length and breadth of Scotland.

Our tourism sector is really diverse across many communities in Scotland. Importantly—Daniel Johnson touched on this—the levy will not just be about hotel chains with an information technology department and a bookings team; it will be about individuals who might run their business out of a diary and who, all of a sudden, are turned into a Government tax collector. We have to be mindful of what that will do to businesses and the consequences that they will face for not being able to report on time or collect what might be a complex levy.

On Pam Gosal’s amendments on VAT, it is important to note that around 20 per cent of unregistered borderline businesses admit to having taken action to remain below the threshold and outside of VAT systems, so it is important that we consider behaviour change in the industry.

My amendment 42 would make provision to ensure that a business impact assessment is undertaken. After the bill is passed, it could provide an opportunity to address concerns around the potential economic impact of the legislation. I hope that the minister and the committee will see that the introduction of such a provision could be useful in scoping the impact of the legislation.

During stage 1, the committee did not take a position on whether it supports a percentage scheme or a flat rate. However, it was clear that all the businesses that gave evidence to the committee, whether in person or through written submissions, would prefer a flat-rate fee. That was partly because of the simplicity of implementation. A flat rate would make returns far easier to introduce, administer, calculate and submit and, perhaps most important, it would be easier to explain to guests. As the committee heard, the use of a percentage system to calculate a visitor levy could also cause confusion because of the complexity of additional services being provided—for example, meals—which would make it harder to calculate the percentage fee.

Given the concerns that have been voiced with regard to the impact on business, Conservative members believe that, if the bill is passed, a flat-rate fee would be the simplest way of implementing a levy.

I move amendment 27.

In light of what the minister has said and his amendment 15, which we will be supporting, I will not move amendment 42. That will enable further conversations to take place ahead of stage 3.

Amendment 42 not moved.

Amendments 43 and 44 not moved.

Amendment 8 moved—[Tom Arthur]—and agreed to.

The Government’s decision to support a percentage rate raises concerns with regard to what that might mean and how it will be interpreted at council level. If the rate is set at 5 per cent—I think that is the rate that the Scottish Government is currently proposing—will that lead to a sliding scale on which different councils can appeal? That might lead, in turn, to different councils deciding to charge different rates, which I think is the concern that has been expressed by two of the key councils for tourism activity—the City of Edinburgh Council and Highland Council. Could the minister clarify that?

Good morning, minister and officials. In your opening statement, minister, you said that renters and landlords do not need to know the detail behind this. What modelling has taken place on how many landlords will look to apply the upper limit of 12 per cent and what that would mean for the systems that are currently in place?

I understand. You mentioned the geographical element; in Edinburgh, new properties are coming on to the market with rents that are 25 to 30 per cent higher than they would have been prior to rent control. There is a real disturbance and a potentially dramatic rent increase, as well as a loss of properties, in the capital. What lessons have been learned from that and the lack of data and consultation in relation to future rent controls in the housing bill?

Finally, the Scottish Association of Landlords has accused the Scottish Government of “anti-landlord rhetoric” and of

“harming investment in private rented housing in Scotland”.

Today, it reports estimates of around 22,000 homes being lost from the private rented sector. How would you respond to that?