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Displaying 1659 contributions
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
And south-west Edinburgh.
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
You can decide between yourselves who would like to answer.
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
In every area where a levy has been proposed, has an assessment of the elasticity of demand been made?
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
Is that part of the consideration in Highland Council? I do not know what is being proposed but will there be an assessment of, for example, what percentage difference a 1 per cent increase in price would make to demand? Is that something that is being attempted?
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
I am probably abusing my position as convener very early on in my tenure, but I will make the brief observation that, as a business owner, if I were to put my prices up by 5 per cent at my instigation, I absolutely would be making a forecast on what that would do to my revenue. It may be a difficult calculation, but it is one that I would expect to be done. If local authorities are saying, “We are going to put our prices up by a certain percentage,” I would expect them to assess what that would do to demand and to revenue. I think that that is a fairly fundamental business assessment and if businesses would be making that assessment, I think that local authorities should be making it.
Murdo—do you have any more questions?
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
Fantastic. We have questions from Willie Coffey next.
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
Kevin Stewart, would you like to ask questions?
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
I understand. It is a fraction of a percentage.
On the percentage collection issue, VAT—I have made this point in a private briefing about the City of Edinburgh Council—is a non-trivial tax to collect. A lot of verification is required. If we consider hotel accommodation, there are a lot of different components to that that go beyond the provision of accommodation. There are fine-dining experiences in which the cost of the accommodation is probably less than half of the total bill that is paid. What prevents a bed and breakfast provider, for example, from saying, “We don’t charge for our accommodation. We just have a £100 breakfast that we provide in the morning”? How would you prevent that from happening?
12:15More broadly, the verification that is required to audit the books to ensure that each room rate has had the 5 per cent levy applied correctly is quite complex, certainly as compared with simply totting up the total number of nights of occupancy and then multiplying that by a flat fee.
What stops abuse and, more important, how will verification take place? It strikes me that that is a non-trivial issue.
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
Determining that is quite complicated, is it not?
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
Okay. I will leave my questions there. I thank the witnesses for their contribution.
12:20 Meeting continued in private until 12:35.