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Councils to be given greater flexibility over visitor levy

The bill will allow councils to set fixed visitor levies by area, season, or accommodation type to simplify collection and address legal issues with percentage-based charges.

  • The Scottish Government will introduce a new Bill to let councils set a flat-rate visitor levy, aiming for early 2026 and hoping to pass it before the May elections.
  • After months of industry feedback, ministers concluded further flexibility was needed as industry bodies and small accommodation businesses warned the percentage-based model 'cannot be implemented in practice' due to complexity.
  • Booking platforms are reported to be struggling, with Booking.com saying it 'can’t collect a Levy for only five consecutive nights' and Airbnb advising hosts to inflate rates, while Edinburgh estimates the levy could raise 50 million annually.
  • Local authorities are being urged to pause plans as Edinburgh and Glasgow have announced schemes, and Edinburgh council leader Jane Meagher will work with the Scottish Government on potential changes.
  • Industry groups hailed the announcement and said Marc Crothall and the ASSC will work constructively, while Scottish Conservative Murdo Fraser warned the levy still risks harming local economies after earlier U-turns.
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Government to allow flat rate tourist tax

The visitor levy gives councils the power to tax stays in hotels and other accommodation.

·London, United Kingdom
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theedinburghreporter.co.uk broke the news in on Tuesday, December 2, 2025.
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