The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 1659 contributions
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
Again, I will push back on that. As somebody who stopped doing economics in my first year of university, I may be going beyond the bounds of my expertise, but I think that what you are saying is slightly different. It is not that there is not elasticity of demand; it is that you have rising levels of demand but, at any given moment, the market will be finding a price. If you were to put prices up by 5 per cent at that moment, you would expect to see some reduction. It could be a 5 per cent drop in demand or a 1 per cent drop in demand, but you would expect to see a drop in demand.
I accept that it may be a difficult assessment to make but I think that it is questionable to say that there would be no impact on demand. I am just wondering about that assessment of what a 5 per cent increase would do to demand—which is different from saying that there are rising levels of demand.
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
I want to ask a couple of final questions about the technicalities of the collection of the visitor levy. Let us look at the Edinburgh proposition. There will be a 5 per cent levy, and the council will allow accommodation providers to retain 2 per cent of that, but there will be 20 per cent VAT on top of that. Would it not be better just to charge 3 per cent? The key concern of providers is that they will have to put their prices up in a way that is beyond their control. The council would get the same amount of money if it just charged a 3 per cent levy and the accommodation providers would be able to charge a lower price. Would that not be simpler?
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
Sorry—you need to say that again.
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
It is 2 per cent of the total amount that they are collecting.
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
Thank you for your thoroughness on that, and welcome to the committee.
As much as we welcome Stephen Kerr to the committee, it is also sad to see Jamie Halcro Johnson leave. I am sure that all committee members will join me in thanking him for his contributions and wishing him well in whichever new committee he finds himself.
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
As a guide, I note that we will aim to conclude this panel at about quarter to 11. I turn to Gordon MacDonald.
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
I thank the panel for all their contributions. We will have a brief suspension to allow the panels to switch over.
10:52 Meeting suspended.Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
Stephen Kerr has a supplementary question.
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
Can I come in on that? I would very gently like to push back on that. It may be complicated to arrive at an answer, but one fundamental point that needs to be addressed is the price elasticity of demand. That is, if you are putting up the price by 5 per cent, what will that do to demand? Is that an assessment that you are recommending be made?
Economy and Fair Work Committee
Meeting date: 3 September 2025
Daniel Johnson
Edinburgh is going to put up the price of accommodation by 5 per cent. That is the decision that the council has made. Has the council assessed what that will do to visitor demand?