Agenda Document Pack - Economy and Infrastructure Committee - 05/02/2025
Perth and Kinross Council · 5 February 2025
Back to Economy and Infrastructure Committee — 5 February 2025 and its agenda
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Ambition | Compassion | Integrity Our vision is for a Perth and Kinross where everyone can live life well, free from poverty and inequalities Council Building 2 High Street Perth PH1 5PH 29/01/2025 A hybrid meeting of the Economy and Infrastructure Committee will be held in the Council Chamber on Wednesday, 05 February 2025 at 09:30. If you have any queries please contact Democratic Services on (01738) 475000 or email Committee@pkc.gov.uk. THOMAS GLEN Chief Executive Those attending the meeting are requested to ensure that all notifications are silent on their device and other devices are in silent mode. Please note that the meeting will be broadcast online and recorded. The recording will be publicly available on the Council’s website following the meeting. Members: Councillor Eric Drysdale (Convener) Councillor Jack Welch (Vice-Convener) Councillor Hugh Anderson Bailie Rhona Brock Councillor Steven Carr Councillor Stewart Donaldson Councillor John Duff Councillor Angus Forbes Councillor Ken Harvey Councillor Noah Khogali Councillor Grant Laing Councillor Willie Robertson Councillor Frank Smith Councillor Colin Stewart Councillor Alan Watt Page 1 of 160
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Economy and Infrastructure Committee Wednesday, 05 February 2025 Agenda Members are reminded of their obligation to declare any financial or non- financial interest which they may have in any item on this agenda in accordance with the councillors’ code of conduct. 1 WELCOME AND APOLOGIES/SUBSTITUTES 2 DECLARATIONS OF INTEREST 3 MINUTE OF MEETING OF THE ECONOMY AND INFRASTRUCTURE COMMITTEE OF 21 OCTOBER 2024 FOR APPROVAL (copy herewith) 5 - 6 4 OUTSTANDING BUSINESS STATEMENT (copy herewith 25/26) 7 - 8 5 TAY CITIES PROSPECTUS FOR REGIONAL GROWTH (2025- 2035) AND PERTH AND KINROSS ECONOMIC ACTION PLAN (2025-2030) Report by Strategic Lead - Economy, Development and Planning (copy herewith 25/27) Note: There will also be a short presentation on this item. 9 - 62 6 PERTH AND KINROSS VISITOR LEVY Report by Strategic Lead - Economy, Development and Planning (copy herewith 25/28) 63 - 160 Page 3 of 160
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Economy and Infrastructure Committee Minute of hybrid meeting of the Economy and Infrastructure Committee held in the Council Chambers on Monday 21 October 2024 at 1.00pm. Present: Bailies A Bailey (from item 5 onwards) and C McLaren, Councillors H Anderson, A Chan (substituting for Councillor N Khogali), S Carr, E Drysdale, J Duff, A Forbes, K Harvey, G Laing, W Robertson, F Smith, C Stewart and J Welch. In Attendance: D Littlejohn, Strategic Lead – Economy, Development and Planning, B Murray, (Economy, Place and Learning); A Clegg and S Whyte (Housing and Communities), K Molley, S Hendry, S Dockerill and M Pasternak (all Legal and Governance). Apology: Councillor N Khogali Councillor E Drysdale, Convener, Presiding. Then Convener led on Items 1-5 and Vice-Convener led on Item 6. 1. Welcome and Apologies Convener welcomed everyone to the meeting. An apology for absence was noted as above. 2. Declarations of Interest There were no Declarations of Interests in terms of the Councillors’ Code of Conduct. 3. Minute of Meeting of Economy and Infrastructure Committee of 28 August 2024 The minute of the meeting of the Economy and Infrastructure Committee of 28 August 2024 was submitted and approved as a correct record. 4. Outstanding Business Statement Resolved: The status of actions in the Outstanding Business Statement (24/283) be noted and completed actions removed accordingly. 5. Perth and Kinross Local Development Plan (LDP3) Development Plan Scheme There was submitted a report by Strategic Lead – Economy, Development and Planning (24/284) seeking approval for the updated statutory Development Plan Scheme (DPS) relating to the preparation of the next Perth and Kinross Local Development Plan (LDP3). (Bailie A Bailey entered the meeting during this item.) 3 Page 5 of 160
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Resolved: (i) The proposed Perth & Kinross Council Development Plan Scheme incorporating the responses to consultation on the draft Participation Statement, be agreed. (ii) The Strategic Lead - Economy, Development and Planning, be authorised to submit the Scheme to the Scottish Ministers. (iii) The Place Strategies Manager & Chief Planning Officer (in post from 2 December 2024), be remitted to submit an annual progress report to the Economy & Infrastructure Committee detailing any changes to the Development Plan Scheme. 6. Perth and Kinross Outdoor Access Forum Annual Report 2023-24 There was submitted a report by the Strategic Lead – Housing and Communities (24/285) summarising the activities and progress of the Perth and Kinross Outdoor Access Forum over the last year and recommends the appointment of one new member to the Forum. Resolved: (i) The appointment of one new member for a period of four years, be confirmed. (ii) It be noted that the remaining members are retained in their appointments for at least a further year as set out in Appendix 1 of Report 24/285. (iii) The fulfilment of any casual vacancy arising in this period through recruitment by Forum members, as detailed within the Forum’s Terms of Reference, be delegated to the Strategic Lead (Housing & Communities). (iv) The contribution of two retiring members - thanking them for their service, the activities and progress of the Forum since November 2023, and the ongoing commitment to maximise effective partnership working to make the best of the exceptional landscapes, paths networks and access rights for all within Perth & Kinross, be noted. (v) It be noted that future Outdoor Access Forum Annual reports be submitted to the Climate Change and Sustainability Committee for consideration. Page 6 of 160
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ECONOMY & INFRASTRUCTURE COMMITTEE OUTSTANDING BUSINESS STATEMENT (OBS) (Report No. 25/26) Please note that this statement sets out outstanding decisions of this committee along with an update and estimated completion date. Actions which are overdue are shaded for ease of reference. Where an update reflects that an action is complete then the Committee’s agreement will be sought to its removal from the OBS. No Minute Reference Subject Title Outstanding Actions Update Lead Officer /Service Action Due /Complete Action Expected 16. 28 August 2024 Item 5 Road Gully Cleansing Public communications to be released to raise awareness of landowner responsibility in relation to watercourses. Flooding Manager to prepare communication re landowner responsibilities pending an engagement piece with landowners, farmers etc over the coming months with support from Bailie McLaren (and the NFU etc). Strategic Lead – Environment and Infrastructure COMPLETE February 2025 18. 28 August 2024 Item 5 Road Gully Cleansing Investigate technical feasibility of publicising gully cleansing and monitoring data, schedules and performance. Progress continues to develop technical solution between RMP, PKC IT team and software provider. Development time and estimated costs established. Potential issues with direct upload of data to PKC Sharepoint Site but will seek manual transfer solution as a temporary fix if required in order to publicise data. Strategic Lead – Environment and Infrastructure ONGOING April 2025 4 Page 7 of 160
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Perth and Kinross Council Economy and Infrastructure Committee 5 February 2025 Tay Cities Prospectus for Regional Growth (2025-2035) and Perth and Kinross Economic Action Plan (2025-2030) Report by Strategic Lead – Economy, Development and Planning (Report No. 25/27) 1. Purpose of Report 1.1 The purpose of this report is to provide information on the Tay Cities Prospectus for Regional Growth (2025-2035) and to endorse the draft Perth and Kinross Economic Action Plan (2025-2030) developed by the Perth and Kinross Economic Partnership before it goes out for public consultation. 2. Recommendations 2.1 It is recommended that the Committee: (i) Note the Tay Cities Prospectus for Regional Growth (ii) Endorse the draft Perth and Kinross Economic Action Plan developed by Perth and Kinross Economic Partnership (iii) Note that the Strategic Lead - Economy, Development & Planning will carry out a public consultation on behalf of Perth and Kinross Economic Partnership, and following consultation, to finalise the Action Plan with Perth and Kinross Economic Partnership for delivery from 1st April 2025. (iv) Request that officers bring back annual progress reports to this Committee for consideration. 3. Structure of Report Introduction Section 4: Background/Context Section 5: Tay Cities Prospectus for Regional Growth Section 6: Draft Perth and Kinross Economic Action Plan Conclusion 4. Background/Context 4.1 The Tay Cities Regional Economic Strategy (2019-2039) was approved by the Tay Cities Joint Committee in September 2019. The priorities identified in the Strategy provided the basis for the Tay Cities Deal (2019-2030) which was signed on 17 December 2020. The Tay Cities Deal has provided £300m to support 26 programmes and projects across the region. 4.2 In March 2021, a Perth and Kinross Economic Wellbeing Plan (2020-2028) was approved by the Council (Report 21/37) to address the challenges arising from the economic and social impacts of the Covid-19 pandemic and identified 5 Page 9 of 160
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a range of interventions required to ensure recovery of the local economy. A progress report was provided to Council on 27 April 2022 (Report 22/105 refers). 4.3 A current review of the 83 projects listed in the Economic Wellbeing Plan highlights that as of January 2025; 33% have been completed; 39% are on- going projects or currently in delivery; 7% have been delayed; and 21% were not taken forward/failed to secure funding. Appendix 3 highlights a summary of several key projects within the Plan which have been delivered or are ongoing, which have created significant outcomes for individuals, businesses and places. 4.4 Since 2019, there have been several major changes to the economic and social context at a local, national and international level. These include recovery from the Covid-19 pandemic, war in Ukraine, cost of living crisis, a new National Strategy for Economic Transformation, Fair Work legislation, Community Wealth Building ambitions, Scotland green industrial strategy, proposals for a new UK Industrial Strategy from the new UK Government, and the need for a Just Transition to Net Zero. 4.5 In 2024, there was an agreement at regional level to review the Tay Cities Regional Economic Strategy, which concluded that there was a need to focus on fewer and more transformational opportunities to deliver regional economic growth from 2025. To that end, a Tay Cities Prospectus for Regional Growth (2025-2035) was approved by the Tay Cities Joint Committee in December 2024. 4.6 In 2024, the Perth and Kinross Economic Partnership agreed that a new Economic Action Plan was needed to ensure that local actions remained relevant and were in line with the regional transformation opportunities outlined in the Prospectus. During the summer/autumn of 2024, a series of design led thinking workshops were held to support the development of the new Economic Action Plan. 5. Tay Cities Prospectus for Regional Growth (2025-2035) 5.1 Within the context of the Scotland's National Strategy for Economic Transformation, the economic mission for the Tay Cities Region is unchanged - we want to be one of the most productive knowledge-led economies, whilst ensuring that we become smarter, greener and fairer. To do this we will work to: • Attract investment for innovation and infrastructure • Develop, retain and attract talented people • Improve physical and digital connectivity to, from and around the region • Increase economic participation and reduce inequalities 5.2 The Prospectus for Regional Growth (2025-2030) has been developed to attract external investment into the Tay Cities region, focussing on four key priority opportunities: • Clean growth for smarter and sustainable places Page 10 of 160
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• Life sciences, health and agri-tech • Tourism and culture • Creative, digital, cyber and games economy 5.3 Continued investment in skills and talent and connectivity – both digital and physical - will underpin these opportunities. 5.4 The Committee is asked to note the Tay Cities Prospectus for Regional Growth (2025-2035). Appendix 1 provides more detailed information. 6. Perth and Kinross Economic Action Plan (2025-2030) 6.1 The draft Perth and Kinross Economic Action Plan 2025-2030 (Appendix 2) has been developed through a collective effort of the Perth and Kinross Economic Partnership who will be responsible for its implementation and monitoring. 6.2 The Perth and Kinross Economic Partnership partners are: • Department for Work and Pensions • GrowBiz • Elevator (including Business Gateway) • Scottish Enterprise • Skills Development Scotland • Perthshire Tourism Partnership • VisitScotland • Perth and Kinross Association of Voluntary Services • UHI Perth • Perthshire Chamber of Commerce • Federation of Small Businesses • Perth and Kinross Business Partnership • Perth and Kinross Council 6.3 The Action Plan sets out the approach Perth and Kinross Economic Partnership will take over the next five years (2025-2030) to grow a stronger, greener, fairer and more sustainable economy for Perth and Kinross. The Action Plan has been developed through research of the evidence base, stakeholder engagement, and a deep understanding of our unique strengths and needs. 6.4 It outlines the context and the actions that we need to deliver to address the challenges we face. It will guide the Partnership to deliver economic development actions collectively and help the Partnership to focus and prioritise resources and galvanise support around both public and private investment in Perth & Kinross. 6.5 The key objectives include: • Supporting our local businesses to grow, attract jobs and investment • Tackling inequalities • Supporting the transition to net zero. Page 11 of 160
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6.6 In addition to the key objectives, the Action Plan aims to: • Capture and lead on regional opportunities. • Strengthen Perth and Kinross Economic Partnership around enterprising, customer-focused and shared resources. 6.7 The Action plan supports the delivery of Perth and Kinross Council’s Corporate Plan’s seven priorities, focusing predominately on the following two: • Developing a resilient, stronger and greener local economy by promoting business creation and growth, skills development and job creation. • Tackling poverty by promoting access to training and jobs to people experiencing, or at risk of, experiencing poverty. 6.8 The Action plan works alongside key Perth and Kinross place-based strategies: • Local Development Plan linking to the National Planning Framework 4 • Local Housing Strategy linking to the National Housing Strategy – Housing to 2040 • Mobility Strategy linking to Regional and National Transport Strategies 6.9 Together, the Action Plan and place-based strategies support essential local strategies listed below: • Anti-Poverty Strategy for Perth and Kinross 2024-2030 • Employability Strategy and Action Plan • Perth 2040 linking to Perth City Development and Design Framework • Climate Change Strategy & Action Plan • Perth and Kinross Council Local Area Energy Plan 2024-2045 • Perthshire Tourism Strategy and Action Plan runs until 2025. • Perth and Kinross Culture Strategy 2023-2028 • Raising Attainment Strategy 2024-2027 • Carers Strategy 2023 to 2026 • Perth and Kinross Physical Activity and Sports Strategy 2023-2028 • Community Learning and Development Plan 2024-2027 • Mental Health and Wellbeing Action Plan 6.10 The Action Plan emphasise the advantages that Perth and Kinross has for its strategic location and excellent transport links; its rich heritage; vibrant arts scene; world class environment and quality of life. Overall, our economy has good foundations to grow and is a proven world-class leader in food & drink, tourism and finance sectors. It can build on its strong business creation and survival performance to strengthen business growth in key sectors. However, the Plan also emphasises that not everybody is benefiting from these positive economic opportunities, and further efforts need to be made for household experiencing or be at risk of poverty. 6.11 The Action Plan highlights that if we are to create a place where everyone can truly live life well, we must focus our collective effort to address several grand challenges. These grand challenges are: Page 12 of 160
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• Economic Growth - Our economy experiences and will experience a slow and fragile growth with some of our sectors more exposed to external events and need to grow our micro, small and medium businesses. However, there are sectoral growth opportunities and a strong enterprise base. Perth and Kinross have recently been named as the top UK area for having the strongest growth potential opportunities amongst its businesses (Growth Flag, 2025). • Technological Change - Our economy experiences technological change from automation and digital transformation and some of our jobs are more exposed and at risk (estimated 33,000 jobs). However, there are also growth opportunities in the digital, AI and fintech industries that we need to attract more of, particularly when applied to other sectors. • The Transition to a Net-zero Carbon Economy - Our economy needs to transform to net zero and some of our sectors are at risk of lagging behind due to costs, new norms or skills shortage. However, there are also growth opportunities and for Perth and Kinross to become a leader in this field. Perth and Kinross have already been identified as one of top UK areas which stand out with particularly high concentrations of Net Zero GVA at 13%. (Ref. CBI Economics and The Data City 2024). • Tackling Inequalities - Our local economy does not offer the same positive economic opportunities for everyone with significant earnings disparities and people experiencing or at risk of poverty due to insecure or low paid employment. However, there are skill shortages and job opportunities in some growth sectors that could be the route to more well- paid and secure jobs. 6.12 For each grand challenge, the Partnership has identified the evidence it has and what it means in terms of actions. The Partnership has then identified what it will be focusing on, what it is aiming for and what actions it will deliver. 6.13 Appendix 2 provides more detailed information on each action. It is important to note that the action plan does not list all the actions that each partner organisation is delivering individually but focuses on actions which would bring added-value or addresses where partnership working, and delivery, will really make a difference. 6.14 For each action, costs and funding sources have been estimated or in some cases will have to be confirmed. Existing budgets will be optimised as much as possible, and external funding sought to support each action when relevant. 6.15 The Committee is therefore asked to endorse the draft Perth and Kinross Economic Action Plan developed by Perth and Kinross Economic Partnership in advance of public consultation. 6.16 Perth and Kinross Economic Partnership intends to carry out a public consultation in February/March 2025 with residents, businesses and communities. The Council will organise the consultation on behalf of the Partnership. Page 13 of 160
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6.17 Following consultation, the Partnership will finalise the Action Plan and the delivery would start from 1 April 2025. 6.18 The Partnership will review the progress of the Action Plan annually and it is proposed that annual progress reports are submitted to this Committee for consideration. 7. Conclusion 7.1 The Perth and Kinross Economic Action Plan sets out the Council and its economic development partners’ proposed response to the challenges facing our local economy. Within the context of Scotland's National Strategy for Economic Transformation, the actions set out in the Action Plan will contribute to the delivery of the Tay Cities Regional Economic Strategy (2019-2039), the priority opportunity themes, and the regional-scale projects identified in the Tay Cities Region Prospectus for Regional Growth (2025-2035). The Action Plan will require best use of existing budgets and seeking additional revenue and capital resources from external funding sources. 7.2 Following consideration by the Committee, a public consultation will take place and following consultation, the Action Plan will be finalised, and the delivery will start from 1 April 2025. Annual progress reports will be submitted to this Committee. Authors Name Designation Contact Details Steve MacDonald Economic Development Manager – Business, Place and Investment EPLCommitteeReports@pkc.gov.uk (01738) 475000 Alison Seggie Economic Development Manager – People, Partnerships and Funding Authorised Name Designation Contact Details Serge Merone Strategic Lead – Economy, Development & Planning 29 January 2025 APPENDICES Appendix 1 – Tay Cities Prospectus for Regional Growth Appendix 2 – Draft Perth and Kinross Economic Action Plan Appendix 3 - Examples of Projects and Outcomes Delivered via the previous Economic Wellbeing Plan Page 14 of 160
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ANNEX 1. Implications, Assessments, Consultation and Communication Strategic Implications Yes/None Community Plan/Single Outcome Agreement Yes Corporate Plan Yes Resource Implications Financial Yes Workforce No Asset Management (land, property, IST) No Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal and Governance Yes Risk Yes Consultation Internal Yes External Yes Communication Communications Plan Yes 1. Strategic Implications Community Plan/Single Outcome Agreement 1.1 This section sets out how the proposals relate to the delivery of the Perth and Kinross Community Plan/Single Outcome Agreement in terms of the following priorities: (i) Giving every child the best start in life; (ii) Developing educated, responsible and informed citizens; (iii) Promoting a prosperous, inclusive and sustainable economy; (iv) Supporting people to lead independent, healthy and active lives; and (v) Creating a safe and sustainable place for future generations. This report relates to Objectives (iii). Corporate Plan 1.2 This section sets out how the proposals relate to the achievement of the Council’s Corporate Plan Objectives: (i) Giving every child the best start in life; (ii) Developing educated, responsible and informed citizens; (iii) Promoting a prosperous, inclusive and sustainable economy; (iv) Supporting people to lead independent, healthy and active lives; and (v) Creating a safe and sustainable place for future generations. This report relates to Objective (iii). Page 15 of 160
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2. Resource Implications Financial 2.1 The recommendations in this report do have financial implications. For each action, specific funding sources have already being identified in existing budgets. When funding sources have not been identified, these will be identified from existing budgets or considered during the budget setting process in future years or from external funding sources Workforce 2.2 The recommendations in this report do not have any direct implications for the Council’s workforce. However, it is likely that some staff may be required to undertake different duties to allow implementation of the Economic Action Plan. Asset Management (land, property, IT) 2.3 There are no direct Asset Management implications arising from this report. However, some potential actions in the plan could have implications for Council assets. 3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. An Equality Impact Assessment will be carried out on the final version of the plan following public consulation. One of the main focus of the Action Plan is on tackling inequalities and officers will ensure that implementation can benefit all groups in society and reduce barriers to participation. Strategic Environmental Assessment 3.2 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. An Environmental Impact Assessment has been undertaken for the Tay Cities Regional Economic Strategy of which the Perth and Kinross Economic Action Plan is a sub-set/workstream, and as such should not require its own Assessment. However, some actions in the Action Plan could require an Environmental Impact Assessment which would be carried out as needed. Sustainability 3.3 Under the provisions of the Local Government in Scotland Act 2003, the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. Under the Climate Change Page 16 of 160
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(Scotland) Act 2009, the Council also has a duty relating to climate change and, in exercising its functions must act: • in the way best calculated to delivery of the Act’s emissions reduction targets; • in the way best calculated to deliver any statutory adaptation programmes; and • in a way that it considers most sustainable. Legal and Governance 3.4 The Strategic Lead, Legal and Governance has been consulted on this report. The recommendations in this report do not have any direct legal implications. The Perth and Kinross Economic Partnership owns the delivery of the Action Plan and Perth and Kinross Council is one of the partners. However, some actions in the Action Plan may have legal implications and assessments would be carried out as needed. Risk 3.5 The development of the Perth and Kinross Economic Action Plan is a significant piece of work, which will cover a 5 year period of time and effect what the Council and its partners do. There will be some risks associated with this work and these will be identified and managed using recognised risk management approaches. 4. Consultation Internal 4.1 All members of the Council’s Strategic Leadership Team have been consulted in the preparation of this report. External 4.2 The draft Economic Action Plan was subject to an in-depth engagement with all partners for the Perth and Kinross Economic Partnership using a Design Thinking approach. This collaborative, creative problem-solving approach places people at the heart of its solutions, ensuring that the plan addresses real needs effectively. This approach has also helped to strengthen relationships among partners, enhancing their ability to work cohesively toward shared actions. A public consultation will be carried out with the wider business community, and the general public during February/March 2025. 5. Communication 5.1 The communication arrangements will be developed through a Communication Plan which has still to be drafted and approved by Perth and Kinross Economic Partnership. Page 17 of 160
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2. BACKGROUND PAPERS 2.1 N/A. Page 18 of 160
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2025-2035 TAY CITIES REGION: PROSPECTUS FOR REGIONAL GROWTH 5 Page 19 of 160
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Contents 3.Foreword & Executive Summary 4.Introduction & Vision 5.Tay Cities - Our Region 6.Tay Cities Region - Economic Performance 7.Tay Cities Region Deal Investment & Benefits 8. Tay Cities - Priority Opportunity Themes / Enablers 2025-2035 9.Priority Opportunities Themes: Next steps 10.Private Sector Engagement 11.Evolving our Regional Economic Partnership 12.Proposed delivery governance arrangements 13.Our Asks 14.Contacts and Links to Further Information Page 20 of 160
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Foreword - Chair of the Tay Cities Joint Committee The Tay Cities Region partners have a long and positive track record of collaborative working, including through ourTay Cities Region Deal Partnership, to deliver inclusive, sustainable economic growth. We have a shared ambition to make the Region one of the most desirable areas in Europe in which to live, work, invest and visit. Our Region has added to its economic strengths and assets through the Tay Cities Region Deal investment programme: innovation assets for our world-class universities, a thriving life sciences sector, advanced manufacturing, creative industries and many more. However, we know that there are new challenges and opportunities that require more innovation and investment. Our productivity remains low, and exclusion levels remain stubbornly high, for example, average weekly wages remain below the average for Scotland contributing to the cost-of-living crisis. Foreword - Chair of the RegionalEnterprise Forum Our mission is unchanged for the Tay Cities Region - we want to be one of the most productive knowledge-ledeconomies, whilst ensuringthatwe become smarter,greenerandfairer. Our economic strategy is also unchanged. We continue to work together to: •attractinvestmentfor innovation,andinfrastructure •develop,retainandattracttalentedpeople •improvephysical anddigitalconnectivityto, from andaroundtheregion •increase economic participationandreduceinequalities. By placing smarter, inclusive and sustainable growth at the heart of our regional growth ambitions, we will achieve greater impact from the Tay Cities Region Deal, to make a lasting difference to our businesses and communities. Our long-term partnerships with regional businesses and the Scottish and UK governments are essential to make this a reality - not just through shared investments, but from our shared connections and pride in the Region. Executive Summary The purpose and scope of this Prospectus is to achieve the greatest impact from the Tay Cities Region Deal across the whole of the Region. As many projects have now been delivered, it sets out a revised approach to delivery for the next phase. It restates the Vision from the Tay Cities Regional Economic Strategy 2019 – 2039 to show how Tay Cities Region can support the missions of the Scottish and UK Governments through a tighter focus on growth from collaborative innovation, in four Priority Opportunity Themes (Clean Growth for Smarter and Sustainable Places Life Sciences, Health and Agri Tech, Tourism and Cultural, Creative, Digital, Cyber and Games Economy), and two enablers (Skills and Talent, and Connectivity – Digital and Physical). It summarises the economic strengths of each of the Local Authority areas and it provides an update on key economic indicators, many with little change since the first Regional Economic Strategy in 2017. It forecasts outcomes from the Tay Cities Region Deal investment in terms of jobs and leverage for each of the Priority Opportunity Themes and Enablers. The Priority Opportunity Themes set out the regional ambitions for them and examples of existing and future investment opportunities. There are a small number of next steps for these that set out how the partners intend to turn this Prospectus into delivery. These include a re-energised approach to engagement with businesses in the region and a review of the governance processes for the Regional Economic Partnership. Barriers have been identified that may put at risk an integrated approach to delivery of the Tay Cities Region Deal, other funding programmes and business as usual. Some of the Priority Opportunity Themes have existing roadmaps, others need to be developed. The principal ask of the businesses is that they engage in these processes to help steer them as they are developed and delivered. The Prospectus concludes with a series of asks for the private sector, Scottish and UK Governments and national agencies. The principal one is that any future UK and Scottish Government funding comprises a multi-year, long-term, integrated, place-based allocation based on our socio-economic needs. For the funding to be based on our shared ambition to become a smarter, fairer, and greener region for our businesses and citizens. Page 21 of 160
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Introduction The purpose and scope of this Prospectus is to achieve the greatest impact from the Tay Cities Region Deal across the whole of the Region. Many projects have already been delivered and further business cases and reviews of its programmes are taking place in 2024, so it is timely to consider the best approach for the next phase. However, to achieve that impact, to revitalise our business engagement and achieve the wider ambitions for inclusive, sustainable, economic growth through innovation as set out in our Regional Economic Strategy 2019-39, we are reviewing our Regional Economic Partnership to develop a more integrated approach across the Tay Cities Region Deal, other investment programmes and business as usual delivery. We want to re-energise our partnership, particularly with businesses. Our biggest challenge is the human resources available to us. We need to make best use of who is available, to develop new competencies as we cope with ageing workforces and recruitment constraints. The Tay Cities Region Economic Strategy 2019-2039 sets out the mission for the Tay Cities Region and our Regional Economic Partnership. Since its last update in 2019, new events, strategies, policies, and thinking have emerged. These include recovery from the COVID-19 pandemic, the National Strategy for Economic Transformation, Fair Work legislation, Community Wealth Building ambitions, proposals for a new UK Industrial Strategy, and the need for a Just Transition to Net Zero. Our mission stays the same, but we agree that we need to focus on fewer and more transformation opportunities to deliver regional economic growth from 2025. This Prospectus is a place-based approach that is cross-sectoral, recognising that the different sectors of the economy are inextricably interlinked. Cross-cutting themes including Connectivity and Talent and Skills underpin the growth opportunities. By integrating existing policies, strategies and initiatives will link to the strategy and prospectus to leverage further investment for the Region. This document also sets out how the region will contribute to the emerging UK Industrial Strategy missions: to deliver clean power by 2030, harness data for the public good, caring for the future, and to build a more resilient economy. Vision We strive to make the Tay Cities Region a cleaner and greener region driving our net zero and clean energy transition as part of a green industrial strategy. We will become one of the most exciting, dynamic and desirable areas of Europe to live, work, invest and visit. The region will lead the transition for clean, green growth that fosters world-leading innovation, research and business entrepreneurship and growth. The region’s world class cluster of learning and research (Universities of St Andrews, Dundee, Abertay, Highlands & Islands, Dundee & Angus College, Scotland’s Rural College, Fife College, and James Hutton Institute) combined with the global tourism assets of The Tay, its nature assets, iconic golf courses, and leading strengths in agriculture, food and drink, life sciences, advanced manufacturing, port assets and renewable energy production and support, will continue to position the region as the place of choice for investment and business location. Our economy will be fully inclusive – putting people and wellbeing at the heart of everything we do - and one where disadvantage, poverty and inequality are tackled through provision of and access to economic opportunity. The region is renowned for its public, private, third sector and academic collaboration driving innovation and research, applying digital technologies and developing low carbon solutions for the Tay Cities region and beyond. Page 22 of 160
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Tay Cities - Our Region North East Fife • Fife’s sector strengths include advanced manufacturing, financial and business services, food and drink, culture and creative/digital, sectors that build on the academic and vocational expertise of the University of St Andrews and Fife College. • Fife has an outstanding coastline and strategic travel routes providing opportunities for inclusive and sustainable growth. • Fife is a centre of excellence in low carbon and renewable energy innovation being showcased at the University of St Andrews’ Eden Campus, Guardbridge. • Several transformative investments are already underway including the opening of the Levenmouth Rail Link in June 2024. • Outstanding natural and cultural assets provide many tourist destinations, including the Forth Bridges, St Andrews – The Home of Golf, a total of 48 Fife golf courses, the Fife Coastal Path, and the Pilgrim Way. Angus • Angus’s sector strengths include manufacturing and engineering, renewable energy, tourism and golf, food and drink, and agriculture. • Strategically placed to support the offshore renewable sector, Montrose Port Authority is home to operations and maintenance for Scotland’s largest wind farm and is the first Scottish port to offer shore power to offshore energy vessels. • Skills development opportunities in programming robotics, welding training using VR, and advanced manufacturing all take place at the Tay Cities Engineering Partnership at Dundee & Angus College, Arbroath. • Home to international tourism events such as The Senior Open and Bon Fest, Angus continues to attract investment into tourism infrastructure to meet market demand and support sustainable economic growth. • Significant investment is in the pipeline to support transition to low carbon transportation on land, sea and in the air through the Mercury programme. Dundee City • Dundee’s sector strengths include life sciences, technology, digital, creative and cultural industries, sectors that build upon the academic expertise of the Universities of Dundee and Abertay and Dundee & Angus and Al-Maktoum Colleges. • With its £1bn Waterfront redevelopment, Michelin Scotland Innovation Park and City Centre Investment Plan, Dundee offers significant opportunities for further inward investment. • Dundee has an international reputation for using culture and creativity as a catalyst for building resilient and robust communities. • Dundee was Scotland’s first Fair Trade City, the UK’s first Living Wage City and the UK’s first UNESCO City of Design. • Dundee has established its status as a visitor destination with the opening of V&A Dundee in 2018, the redevelopment of the Royal Research Ship Discovery Point experience and the planned Eden Project, Dundee. Perth and Kinross • Perthand Kinross's sector strengths include finance and business services (7.1% of the local economy and employing more than 8000 people). • The energy sector, and SSE plc, levers significant natural assets; in clean energy production, transmission, storage and distribution. • There is a thriving visitor economy with world-class resorts, outstandinglandscapes and visitor attractions. The new Perth Museum welcomed over 150,000 visitors in its first 5 months. • Perth is the UK's only UNESCO City of Craft. • The agriculture, food and drink sectors are driving the green Agritech revolution, led by the James Hutton Institute's world-leading research. • Perth and Kinross has a strong and resilient enterprising mindset demonstrated by high levels of self- employment and a high 5-year business survival rate. • Investment in the Perth Innovation Eco Park and its Innovation Highway. Page 23 of 160
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Compared to 16.5% in Scotland as a whole Compared to Scottish unemployment rate of 3.7% Compared to Scottish rate of 7.8% Compared to Scottish survival rate of 40.5% Earnings Productivity Average workplace weekly wages in all areas in the Tay Cities Region (TRC) are below the Scottishaverage. Wage levels are a long-term issue. Our ambition is to increase the number of better paid jobs across the region, to improve access to opportunity and for more equitable distribution of wealth and wellbeing. Whilst business survival and self-employment rates in the Region are slightly higher than the rates for Scotland as a whole, these figures mask significant intra-regional variations. Angus and Perth and Kinross have higher survival and self-employment rates while Dundee and Fife have lower rates. We aim to enhance the support for business start-ups, survival and growth by supporting sectors in which the region has strengths, or which offer significant potential for growth through innovation. The Tay Cities Region’s unemployment rate is a long-term issue, higher than the average for Scotland, as is the proportion of people who are economically inactive but want a job. Our long-term objectives are to reduce economic inactivity (people who are neither in work nor seeking work) to below the Scottish average, while increasing productivity to create higher- paid jobs. The graph below shows the Gross Value Added (GVA) per hour worked across the four local authorities within the Tay Cities Region compared to the Scotland average. GVA per hour worked is lower than the national figure in Dundee and Fife, but higher in Angus and Perth and Kinross. Productivity underperformance is a long-term issue. 702.80 682.30 680.60 671.90 622.80 550 600 650 700 750 Scotland Angus Dundee Perth & Kinross Fife Average Weekly Workplace Wage 2023 (£) 38.50 39.00 32.50 38.70 36.30 28 30 32 34 36 38 40 Scotland Angus Dundee Perth & Kinross Fife Gross Value Added Per Hour Worked 2022 (£) 41% 5-Year Business Survival Rate (2017-2022) 7.9% Self- Employment Rate (2023) 4.2% Unemployment Rate (2023/24) 26.6% of economically inactive people want a job (2023/24) Note: All data shown below are from Office of National Statistics datasets. Where figures are not available for the North-East Fife Area, data for the Fife Council local authority area have been used. Tay Cities Region - Economic Performance Labour Market Business Base Page 24 of 160
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Tay Cities Region Deal Investment & Benefits Up to £102m Government Investment Up to 3,083 jobs Up to £131.099m leverage Life Sciences andAgri-Tech Up to £49.7m Government Investment Up to 661 jobs Up to £54.162m leverage Cultural, Creative/ Digital andVisitor Economies Up to £86.2m Government Investment Up to 2,543 jobs Up to £200.985m leverage Clean Growth for Smarter and Sustainable Places The Tay Cities Region Deal will provide the key outcomes shown below (existing deal projects have been linked to the key themes set out in this document). Further information on Tay Cities Region Deal projects and the benefits they will bring to the region is available in the latest Annual Performance Report. The TCRD Partnership continues to demonstrate deliverability at a regional level and as such has attracted other regional economic growth initiatives over the years. Examples of these are noted below. Please note some themes have been merged for this data collection exercise, the priority theme opportunities and enablers set out in slide 8 will be reassessed as more projects progress. Up to £30.1m Government Investment Up to 148 jobs Up to £500k leverage Skills/Talent Up to £32m Government Investment Up to 459 jobs Up to £13.254m leverage Connectivity Page 25 of 160
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Tay Cities - Priority Opportunity Themes / Enablers 2025-2035 Clean Growth for Smarter and Sustainable Places Our vision is to be a powerhouse for innovationwith the increased take up of smart technologies. We will become Scotland's most collaborative digital tech region, unlocking business growth and investment through building a connected and inclusive ecosystem. The Clean Growth Initiative could act as a key delivery mechanism for a cleaner, smarter, more sustainable place. Investment opportunities include Michelin Scotland Innovation Park, Eden Campus, Perth Eco Park and Angus’ Mercury Programme. Life Sciences, Health and Agri-tech With a strong agricultural sector in the region, award-winning food and drink producers and a cluster of research institutions that provide an unparalleled level of sectoral expertise, we believe that the region has the potential to make a significant contribution to the Scottish economy from innovation from field to fork collaboration, for food resilience and to address the health consequence of food poverty. Investment opportunities include James Hutton Institution, Medtech and a regional innovation plan. Creative, Digital, Cyber & Games Economy Our region has a significant opportunity to make more of our strong subsectors: creative, cyber games and software development. We will deliver the tech roadmap and use this as the basis for ongoing investment in innovation and digital skills. Dundee continues to build a reputation as a hub of digital excellence, particularly in terms of software, digital gaming, mobile app development and technology services. Our ambition is to extend this to include the whole region. Investment opportunities include The ongoing development of the Cyber Quarter. Justtech and Perth Creative exchange. Enablers Skills and Talent Connectivity – Digital and Physical Private Sector Engagement – People and Organisations (More information on Page 10) Tourism and Culture Our region has a significant opportunity to make more of the region's coasts and wild spaces, and in particular River Tay which links the region. More can be made of the region's ancient heritage and modern culture for visitors and residents alike. We will work together to ensure tourism and culture sectors deliver positive contributions to local communities, the economy and the environment. Investment opportunities include The Tay Adventures programme; Eden Project Dundee Page 26 of 160
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Priority Opportunities Themes: Next steps Support a shift to net zero and growth in the circular economy. Utilise the Clean Growth Initiative. Consult with private sector to develop an innovation roadmap to outline and deliver priorities and actions. Develop an innovation action plan for this priority opportunity theme. Deliver the culture and tourism commitments in the Tay Cities Region Deal and develop additional tourism and culture opportunities via new projectsand initiatives which leverage further investment and continue to raise the region's profile and reputation as a quality destination. Implement the regional Tech Sector roadmap, as a foundation for further growth through innovation and its adoption. Prioritise digital connectivity and use of smart place technologies across the region to boost productivity, attract tech-driven businesses, and improve residents' quality of life. Create a sustainable and reliable inter and intra-regional transport network for business and freight and improve accessibility to jobs, education and other key destinations by public transport. Continue to deliver Phase 1 of Regional Skills and Employability Development Programme. Develop Phase 2 and plan resources for delivery. Develop and deliver the Tay Cities Regional Skills Action Plan and develop a common intelligence framework. Clean Growth for Smarter and Sustainable Places Life Sciences, Health and Agri-tech Skills and Talent Creative, Digital, Cyber & Games Economy Connectivity – Digital and Physical Priority Theme Tourism and Culture Priority Theme Priority Theme Priority Theme Enabler Enabler Page 27 of 160
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Private Sector and Regional Engagement An immediate priority is that we will reenergise our strategic collaboration with the private sector in the region. By leveraging private sector expertise, innovation and resources, we can create market- led solutions and services, for more sustainable outcomes. Our ambition is for the private sector to work with us to have input when planning and delivering the regional activities. We will utilise the Regional Enterprise Forum and collaborate with academia and existing National Agencies (Scottish Enterprise, VisitScotland, Skills Development Scotland, Scottish Development International, Creative Scotland and Historic Environment Scotland) to ensure we have more strategic engagement with the private sector. Local Authorities will utilise their Economic Development departments for more localised and targeted business engagement. Areas of focus will include: • To provide clear rationale as to why businesses should engage with the Regional Economic Partnership e.g. Engage private sector to engage in the Priority Opportunity Themes as we develop and deliver their roadmaps. • We share the Governments’ ambition to secure commercial investment. We will ensure that our businesses want to invest in the local and regional economies, and we are committed to make it easier for them to do so. • Building on and strengthen our existing networks and connections rather than start again from scratch (Life Sciences- Science Futures, Tay Cities Clean Growth, Tourism and Culture - Tay Country, DigiTay). Page 28 of 160
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Evolving our Regional Economic Partnership The Tay Cities Region Economic Partnership is a mature governance structure established to develop and deliver the Tay Cities Region Deal. Many projects have now been delivered, and we now want to achieve the greatest impact from these across the Cities Region. However, to achieve that impact, to revitalise our business engagement and achieve the wider ambitions for inclusive, sustainable, economic growth through innovation set out in our Regional Economic Strategy 2019-39, we are agreed on the need to review our governance processes to deliver the growth opportunities set out in this Prospectus. With a new UK Government and to prepare for the next Scottish Government, we need to review these now if we are to deliver transformational change for the region. Consultation with the partners has helped us determine that the challenges that need addressed are: • Too little private sector involvement in setting and delivering the regional economic strategy. A lack of alignment with their investment and innovation priorities. • No transparent strategic and operational leadership of the Regional Economic Strategy’s Programmes, the management of the interdependencies between Deal-funded activities, those funded through other programmes and business as usual service delivery. The Chief Executives, the Heads of Economic Development and the regional approaches being adopted by national agencies are “advisory” rather than part of the management governance. • A misalignment of responsibility and accountability with available resources, creating resource pressures and reluctance to step up and drive the delivery of roadmaps, their actions and regional programmes. We will become a more strategicregional Economic Partnership and aim to create an adaptable funding environment in which we can respond faster to external changes. We are now halfway through the delivery of Tay Cities Region Deal Programme, with over 50% of the deal fund claimed. We recognise we need to change to have a more strategic focus to drive the economic development of the region. Click here for full details of the existing Governance Arrangements. The Regional Economic Partnership is making a firm commitment to review the governance and make best use of available resources. A new group will be introduced for the CEO’s / Management group to provide strategic oversight. The Management Group would be repurposedto provide operational oversight of the Priority Opportunity Themes ensuring they are robust and effective. The thematic boards would also align with the Priority Opportunity Themes and enablers. The Business Engagement proposals set out in Page 10 would also be incorporated into this strategic, operational and programme/project delivery structure. The private sector and regional engagement proposal will be a key element of successfully delivering the Priority Opportunity Themes. Page 29 of 160
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Our Asks We want to be a region that is known for delivering the fullest impact from collaborative innovation, piloting and demonstrating innovation in action, adopting a living lab approach to do so. To effectively achieve this and deliver the opportunities in this Prospectus, a local, regional and national approach is required to engage businesses, our communities, our public sector and academia. Many of the controls and interventions through which local and regional challenges can be addressed sit at Scottish or UK Government level. Many businesses located in the region rely on approval of their investment plans by external organisations. Through the right form of partnership (new collaborative approaches and funding models), the Tay Cities Region has the potential to harness the socio-economic opportunity from smart technologies, the drive to net zero, to build a more resilient and thriving regional economy that can help support a more prosperous and equal society in Scotland and the UK. We are working together on skills planning for our Region. However, we share the ambition to havea more aligned and responsive Regional Skills Programme which will be more use common frameworks for delivery. We want to build on and strengthen our Regional Economic Partnership, to continue to work with the Scottish and UK Governments, and national agencies to provide mutual value. Our Asks: • Based on our successful track record of delivering the Tay Cities Region Deal, our ask to UK and Scottish Government is that any future UK and Scottish Government funding comprises a multi-year, long-term, integrated, place-based allocation based on our socio-economic needs. For the funding to be based on our shared ambition to become a smarter, fairer, and greener region for our businesses and citizens. • We ask for support to develop a stronger regional delivery capability, including a Regional Intelligence Hub to evidence regional economic performance, place and sectoral opportunities. A Regional Intelligence Hub would allow us to develop a Regional Innovation Action Plan with national agencies, private sector, academia, UK, and Scottish Governments. • We ask for support from the Governments as we transition our governance from one centred on city region deal activity to a regional economic partnership. We need further capacity funding to implement this new governance model. New powers and delivery tools may be needed to achieve the ambitions within the Priority Opportunity Themes and enablers set out in this prospectus. • We ask UK and Scottish Governments to consult with our Regional Economic Partnership Leads on proposals to refocus national strategies and policies to support regional aspirations, e.g. National Strategy for Economic Transformation and the emerging Invest 2035: the UK's modern industrial strategy. • We ask the private sector to work collaboratively with us to ensure we can create market- led solutions and services, for more sustainable outcomes. To help us make this process an easy process for the private sector. Page 30 of 160
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Contacts and Links to Further Information Tay Cities Regional Economic Strategy 2019-2039 Tay Cities Region Deal Tay Cities Region Tourism Strategy Tay Cities Clean Growth DigiTay- Tay Cities Digital Skills Project Tay Cities – Investment Proposition Tactran Sestran Page 31 of 160
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Contents 1: INTRODUCTION 2: GRAND CHALLENGES 3: WHAT WE WILL DELIVER 4: HOW WE WILL MEASURE PERFORMANCE 5: HOW WE WILL ORGANISE OURSELVES APPENDIX 1 Page 34 of 160
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1: Introduction Welcome to the draft Perth & Kinross Local Economic Action Plan (2025-2030), a roadmap designed to bolster the economic vitality and resilience of our community. In an ever-evolving global economy, it is crucial that we proactively address the challenges and opportunities that impact our local businesses, workforce, and overall economic landscape. This draft Perth and Kinross Economic Action Plan (2025-2030) has been co-produced by all members of the Perth and Kinross Economic Partnership. An important aim is to support increased collaboration in economic development to deliver more in partnership. More information on the members of the Partnership is included in Appendix 1 ‘Who we are’. This action plan will replace the Perth and Kinross Economic Wellbeing Plan (2020-2028) which was approved in March 2021 to address the challenges arising from the economic and social impacts of the Covid-19 pandemic. The Economic Wellbeing Plan identified a range of interventions required to ensure recovery of the local economy. Since then, there have been several major changes to the economic and social context at a local, national and international level. The Perth & Kinross Economic Action Plan sets out the approach Perth and Kinross Economic Partnership will take over the next five years (2025-2030) to grow a stronger, greener, fairer and more sustainable economy for Perth and Kinross. This action plan has been developed through comprehensive research, stakeholder engagement, and a deep understanding of our unique strengths and needs. It outlines the context and the actions that we need to deliver to address the challenges we face. It will guide the Partnership to deliver economic development actions, and help the Partnership to focus and prioritise resources and support conversations around both public and private investment within Perth & Kinross. Our key objectives include: • Supporting our local businesses to grow, attract jobs and investment • Tackling inequalities • Supporting the transition to net zero As we embark on this journey, the Partnership invite all residents and stakeholders to comment on the draft action plan. Together, we can create a dynamic and inclusive economic environment that supports the well- being and aspirations of every individual in our community. Page 35 of 160
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1.1: CONTEXT Within the context of Scotland's National Strategy for Economic Transformation, the actions set out in this draft action plan will contribute to the delivery of the Tay Cities Regional Economic Strategy (2019-2039), the priority opportunity themes, and the regional-scale projects identified in the Tay Cities Region Prospectus for Regional Growth (2025-2035). The economic mission for the Tay Cities Region is unchanged - we want to be one of the most productive knowledge-led economies, whilst ensuring that we become smarter, greener and fairer. To do this we will work to: • attract investment for innovation, and infrastructure • develop, retain and attract talented people • improve physical and digital connectivity to, from and around the region • increase economic participation and reduce inequalities The Prospectus for Regional Growth (2025-2035) has been developed to attract external investment into the Tay Cities Region, focussing on four key priority opportunities: • Clean Growth for Smarter and Sustainable Places • Life Sciences, Health and Agri-Tech • Tourism and Culture • Creative, Digital, Cyber and Games Economy Continued investment in skills and talent and connectivity – both digital and physical - will underpin these opportunities. The actions outlined in the draft Economic Action Plan aim to position Perth and Kinross to attract new investment, whilst aligning with the Perth and Kinross Community Plan and the Council Corporate Plan. Together, these strategies support a vision of a region where everyone can live life well, free from poverty and inequality. Both plans emphasise the importance of collaborating with communities to create a thriving local economy that aligns with low carbon ambitions and ensures inclusive opportunities for all. They also highlight Community Wealth Building as a place-based approach to economic development, focused on retaining and redistributing wealth within the local economy whilst empowering residents and businesses. Page 36 of 160
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The draft action plan supports the delivery of Perth and Kinross Council’s Corporate Plan’s seven priorities, focusing predominately on the first two: • Developing a resilient, stronger and greener local economy by promoting business creation and growth, skills development and job creation. • Tackling poverty by promoting access to training and jobs to people experiencing, or at risk of, experiencing poverty. • Tackling Climate Change and supporting sustainable places by promoting decarbonisation of the economy and climate resilient placemaking. • Enabling our children and young people to achieve their full potential by promoting an enterprising mindset from a young age, and through career opportunities. • Protecting and caring for our most vulnerable people by promoting business and skills development opportunities in the care sector, and the opportunity for economically inactive to enter or return workforce. • Supporting and promoting physical and mental wellbeing by promoting a more resilient workforce. • Working in partnership with communities by promoting community-led actions and community wealth building, as well as the importance of meeting housing needs. The draft action plan works alongside key Perth and Kinross place-based strategies: • Local Development Plan linking to the National Planning Framework 4 • Local Housing Strategy linking to the National Housing Strategy – Housing to 2040 • Mobility Strategy linking to Regional and National Transport Strategies Together, they support essential local strategies designed to address the seven priorities highlighted above and listed below. • Anti-Poverty Strategy for Perth and Kinross 2024-2030 • Employability Strategy and Action Plan • Perth 2040 linking to Perth City Development and Design Framework • Climate Change Strategy & Action Plan • Perth and Kinross Council Local Area Energy Plan 2024-2029 • Perthshire Tourism Action Plan runs until 2025. • Perth and Kinross Culture Strategy 2023-2028 • Raising Attainment Strategy 2024-2027 • Carers Strategy 2023 to 2026 • Perth and Kinross Physical Activity and Sports Strategy 2023-2028 • Community Learning and Development Plan 2024-2027 • Mental Health and Wellbeing Action Plan Page 37 of 160
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1.2: The Perth & Kinross Economy Population Figures Scotland's Census 2022 estimated the population of Perth and Kinross to be 150,953. This is an increase of 4,301 (2.9%) from Census 2011 (Scotland 2.7%). There are now estimated to be over 37,226 people aged 65 years and over in Perth and Kinross, accounting for 24.7% of our population (Scotland:20.1%). This proportion has increased from 20.2% in 2011. The population density in Perth and Kinross of approximately 28.5 residents per km2 is below Scotland’s 69.8 residents per km2 and makes it the 7th least densely populated council area in Scotland. Number of Businesses There were 6,175 registered businesses in Perth & Kinross in 2024, employing a total of 54,932 people. Businesses that fall into the bracket of employing either 0-49 people or 50-249 people are categorised as Small to Medium Enterprises (SMEs). In 2024, there were 6,060 businesses employing 0-49 people, and 95 businesses employing 50-249 people. In 2024, 20 businesses in Perth & Kinross employed over 250 people. 10% of the businesses in Perth and Kinross each had a turnover of at least £1M. Number of Jobs 54,932 jobs out of the total of 66,288 in Perth & Kinross were in the private sector. The largest sector by employee job share was Accommodation and Food Services at 13.6% of all jobs, followed by Health at 12.1% of all jobs, and Retail at 9.1%. Page 38 of 160
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2: Grand Challenges Perth and Kinross is well known for its strategic location and excellent transport links, its rich heritage, vibrant arts scene, world class environment and quality of life. Overall, our economy has good foundations to grow and is a proven world-class leader in food & drink, tourism and the financial industries. It can build on its strong business creation and survival performance to strengthen business growth in key sectors. However, not everybody is benefiting from these positive economic opportunities, as we still have households experiencing or at risk of poverty. Across Perth and Kinross, it is estimated that 30,000 people are living below the poverty line, and 27,200 of them are experiencing deep or very deep poverty (living on below 50% or 40% of median earnings). The most recent estimates for child poverty in Perth and Kinross indicates that 5,750 children (21.7%) are living in relative poverty. If we are to create a place where everyone can truly live life well, we must focus our collective efforts to address several grand challenges. These grand challenges are around economic growth, technological change, the transition to a net-zero carbon economy, and tackling inequalities. For each grand challenge, the Partnership has identified the evidence it has and what it means. The Partnership has then identified what it will be focusing on, what it is aiming for and, in the next chapter, what actions it will deliver. Page 39 of 160
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Challenge 1: ‘Economic Growth’: Evidence Gross Value Added (GVA) £53,100 per job in PKC, above the Scottish average of £52,000 Output Growth Increase in GVA for Perth and Kinross was positive, but lagged the Tay Cities Region and Scottish averages between 2017 and 2021. 515 New businesses in 2023 Business birth rate in P&K is the highest in the Tay Cities Region and higher than the Scottish Average. 688 Businesses per 10,000 population Higher than the Tay Cities Region and Scottish Average. High Growth Businesses 1.6% Were defined as high growth, comparable to the national average (a business with 10+ employees and an average of 20% growth over three years in terms of turnover) 245 Business deaths out of the 465 which started in 2018 High Survival Rate 47.3% 5-year survival rate (2018- 2023) is the highest in the Tay Cities Region and fifth highest in Scotland. Self-employment 11% Highest in the Tay Cities Region and higher than the Scottish average. Page 40 of 160
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Challenge 1: ‘Economic Growth’: Analysis What does this mean? Economic growth in Perth and Kinross, like many other regions, faces a series of significant challenges shaped by global and local factors. Over recent years, external factors such as the COVID-19 pandemic, the rising cost of living, and political and geopolitical crises, including war- related disruptions, have left lasting impacts on the economy. These factors have affected businesses across various sectors and places, particularly in vulnerable areas such as Perth city centre, smaller town centres, and rural communities. The Perth and Kinross economy experiences, and will continue to experience, slow and fragile economic growth over the next few years which could be influenced by geopolitical and national events. However, the economy benefits significantly from a strong, enterprising mindset, and has the foundations to innovate and create greater added value in all sectors, even if the challenge is to grow the size of more businesses. There are sectors across the Tay Cities Region which could provide opportunities for growth. What we will focus on The Partnership will work together to secure investment in the areas linked to the four regional priority opportunities, focusing on bringing added value to workers and businesses, thereby enhancing the resilience and robustness of the Perth and Kinross economy. What we are aiming for People will have access to a range of jobs, careers and higher paid job opportunities in sectors important to Perth and Kinross economy. ? Page 41 of 160
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Challenge 2: ‘Technological Change’: Analysis What does this mean? The past few years have seen a challenge of technological change that has centred around the risks of automation facing the labour market. For a lot of businesses, the pandemic accelerated many long- term digital plans, with many shifting work to home and digital learning and looking to invest in new technologies. The Perth and Kinross economy will experience workforce challenges to adapt to technological changes or meet industry needs. An estimated 33,500 jobs across the whole labour market in Perth & Kinross are at risk due to automation, with varying degrees of probability that some of the duties and routine, repetitive tasks performed could be replaced through automation. The risk of automation tends to be higher for lower-skilled roles, and lower for higher-skilled roles. Professional occupations are the occupational group at the lowest risk but since this is the largest occupational group by workforce size, the estimated impact is still notable. The occupational groups most exposed to the risk of automation in terms of sheer workforce numbers are associate, professional and technical occupations and skilled trades occupations. What we will focus on The Partnership will work together to secure investment in future skills and technologies to ensure the Perth and Kinross economy remains competitive and attractive, providing access to higher-quality jobs. What we are aiming for People will have relevant skills to adapt to technological change, thereby staying in or entering employment. ? Page 43 of 160
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Challenge 3: ‘Just Transition to Net Zero’: Evidence A Net-Zero Leader • Perth City has been identified as an innovation cluster of electricity, energy, storage, agri-tech, water and waste. • Energy sector employment in Perth & Kinross is more than double the Scottish average. • Perth and Kinross is ranked as one of the Net Zero economy hotspots in the UK. • Carbon Disclosure Project (City Score) A by 2024 Positive Calendar Year Influence 2019. Renewable power with approved planning permission: Biomass 5.12MW output of biomass power, with planning permission approved spread over seven sites Wind Installed: 312MW of installed or operational wind power, spread across 162 turbines Approved: 75MW of wind power with planning permission approved, spread across 42 turbines There are an additional 240 wind turbines, with power output unknown Solar power 89.95MW of solar power with planning permission approved, spread across 66 sites Hydro power 39.72MW of approved hydro power with planning permission approved, spread across 81 sites 521.79MW Total renewable power output from approved planning applications 480MW Total capacity of approved battery storage projects Page 44 of 160
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Challenge 3: ‘Just Transition to Net Zero’: Analysis What does this mean? The relationship between the economy and the environment has increasingly been at the forefront of policy discussions over the past few years. As we transition away from oil and gas, green economic measures that prioritise environmental sustainability have become a key focus for governments, businesses, and communities. Perth and Kinross is uniquely positioned to play a leading role in this transition, boasting significant natural resources to support renewable energy generation, and an advantageous position in energy transmission, distribution, and storage. However, achieving a sustainable, net-zero economy requires a concerted effort across all sectors, including transport and agriculture, to reduce carbon emissions. The transport sector, in particular, faces a critical need for innovation and investment in cleaner technologies and infrastructure to facilitate a shift toward sustainable mobility. The Perth and Kinross economy will experience workforce challenges to meet industry needs to achieve a transition to net- zero. However, some sectors are experiencing growth in the net-zero economy. Meeting the challenge of the “transition to net- zero” will also depend on attracting talent and prioritising reskilling and upskilling across all industries, with a specific focus on clean growth sectors such as energy transition. Building a workforce equipped with the skills required to innovate, adapt, and implement sustainable practices is crucial to ensuring both economic competitiveness and growth. What we will focus on The Partnership will work together to grow the supply chain in sectors supporting the transition to net-zero, such as energy and mobility transition and the circular economy, unlocking significant market opportunities and attracting, retaining, reskilling or upskilling individuals across all sectors. What we are aiming for People will have relevant skills to benefit from economic opportunities arising from transition to net- zero, thereby staying in or entering employment. ? Page 45 of 160
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Challenge 4: ‘Tackling Inequalities’: Evidence Economic Activity (July 23 – June 24) 80,300 people are economically active, (Scottish Average is 77.3%) 74.8% are employed (73.8%) 2,200 are unemployed (2.7%) 79,300 64,800 are employees (61.4%) 14,300 are self-employed (12.2%) 30.2% are part-time employees 9 3% of households are in ‘urban adversity’ 10.5% of children in low-income families Household Types Wages £671.90 is the average workplace weekly wage (2023). This is 95.6% of Scottish average 12,424 This equates to 8.24% of the population. 45% of these claims were from the 3 City Centre wards 23.4% described as financially stretched Page 46 of 160
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Challenge 4: ‘Tackling Inequalities’: Analysis What does this mean? The workforce is shaped by various dynamic factors, including an ageing population, life expectancy, migration patterns such as the outmigration of young people, levels of economic inactivity, technological advancements, and access to transport and commuting opportunities. In Perth and Kinross, these workforce trends significantly influence the local economy and present ongoing challenges. Residents are accessing higher earning opportunities by commuting out with Perth and Kinross. Not everybody is benefiting from positive economic opportunities with some people and their families experiencing or at risk of poverty. There is also a large number of people not accessing career and job opportunities, and some people experiencing poverty in work due to low earnings. Worklessness remains a key driver of poverty, with households often struggling to recover from unemployment, ill-health, or childcare responsibilities. Even for those in work, poverty can persist due to low wages, precarious employment arrangements with irregular hours or split shifts, and the high costs and limited availability of affordable transport and childcare. It is vital to ensure that people have opportunities to increase their earnings and that those earning a fair wage are not left in poverty. While unemployment levels in Perth and Kinross are relatively low, the average earnings of workers in the region are also comparatively low. This creates a notable disparity between those working within the area, and residents who commute outside the region for higher-paying jobs. Furthermore, there are significant income inequalities between the highest and lowest earners, exacerbating disparities in disposable income both within and between urban and rural communities. Rural residents, in particular, often face a “rural poverty premium,” with higher costs of living and fewer accessible services than those in urban areas. Skill shortages in critical sectors, such as the care industry, present another significant challenge. The ageing population increases demand for care services, creating pressure on a sector already struggling to attract and retain workers. At the same time, higher life-expectancy provides opportunities for older individuals to remain in the workforce longer, potentially helping to alleviate some labour shortages. As the overall workforce shrinks, adapting to future economic demands will require a focus on reskilling and upskilling the existing workforce. Workers will need to be equipped to meet the challenges posed by automation, emerging technologies, and the evolving needs of key industries. Addressing these workforce issues through targeted policies and community support will be essential to building a more inclusive, resilient, and prosperous Perth and Kinross economy. What we will focus on The Partnership will work together to retain and retrain the existing workforce, and increase the workforce by supporting people back into the workplace from economic inactivity. The Partnership will work together to expand the availability of good quality sustainable jobs, including pay or other working arrangements. What we are aiming for Economically inactive people will have relevant skills to enter or re-enter the workforce, and people in work will secure fair wages. The number of households experiencing or at risk of poverty will reduce. ? Page 47 of 160
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3: What we will deliver To address the identified grand challenges and achieve what the Partnership is aiming for, specific actions have been identified and are detailed in the table below. For each action, we identify how the action links to the grand challenges and regional priority opportunities, what the action the Partnership will aim for is, Key Performance Indicators, milestones, timeline, delivery partners, and costs and funding sources. In addition to the identification of the grand challenges, the Partnership has also used a Design Thinking approach to identify key areas of collaboration. This collaborative, creative problem-solving approach places people at the heart of its solutions, ensuring that the plan addresses real needs effectively. This approach has also helped to strengthen relationships among partners, enhancing their ability to work cohesively toward shared actions. Looking ahead, the Partnership aims to collaborate more closely by developing enterprising from an early age, promoting a customer-focused approach, and sharing resources. Enterprise is crucial for driving the Perth and Kinross economy by fostering innovation, collaboration, and continuous learning. The Partnership is dedicated to empowering individuals and businesses to take on new ventures with initiative and resourcefulness. This involves providing the necessary tools and confidence to take risks, and seize opportunities for both personal and business growth. The Partnership will work together to cultivate an enterprising culture. By prioritising learning, encouraging new business creation, and supporting innovative product and service development, they aim to unlock potential for growth. They will inspire others, starting from a young age, by leveraging the success stories of current entrepreneurs. Focusing on individuals and businesses is central to our customer-focused approach. Listening to our customers' needs allows us to provide tailored, high-quality support to help them achieve their goals, whether it's starting a business, securing a better job, or improving their workforce. We are committed to using our resources effectively to provide the best service. To ensure transparency and accountability, we will establish clear commitments to our customers and each other. Efficient and effective resource sharing for a common purpose is essential, with collaboration between organisations being key to success. By strategically targeting and sharing resources, we can better support businesses and people across Perth and Kinross. Our actions will be driven by evidence from local social and economic performance data. Regular communication of this evidence and our progress will ensure transparency and accountability. Insights and updates will be shared with stakeholders, including the public, elected members, boards, and senior management. It is important to note that the table in this draft action plan does not list all the actions that each partner organisation is delivering individually, but focuses on actions which would bring added-value or address market failure though partnership working and delivery. Partnership members, individually or with other members, are already providing business support to start-ups and growing companies including signposting, generic business advice, specialised advice such as export, mentoring or networking. They are also supporting the development of business infrastructure such as digital or transport connectivity, or the servicing of land or commercial and industrial properties. In that context, links will be strengthened with the Local Development Plan, the Local Housing Strategy and the Mobility Strategy. Significant investments have also been made to support Agri-Tech and food and drink innovation through the Advanced Growth Plant Centre and the International Barley Hub in Invergowrie led by the James Hutton Institute. These provide a strong platform to develop enterprise and support this regional growth opportunity. Partnership members, individually or through Perth and Kinross Local Employability Partnership (LEP) Strategy and Action Plan, are already providing employment support to people to access higher-quality jobs through their employment life, or re-enter the labour market either when they are identifying career opportunities and looking for their first job, when they are looking for a job later in life, or when they are in a job and looking for new skills and training. They are also supporting actions at regional level through Tay Cities Skills Programme and these will continue. Partnership members are already using their own resources to support existing local and regional actions individually or jointly. Appendix 1 provides more details on members and their activities. Page 48 of 160
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To build on existing local and regional actions, the Partnership is proposing to deliver the following actions: These actions relate to our Grand Challenges (GC): ‘Economic Growth’(EG), ‘Technological Change’(TC), ‘Just Transition to Net- Zero’ (JTNZ) and the Prospectus for Regional Growth Priority Opportunities (PO): ‘Clean Growth for Smarter and Sustainable Places’ (CG), ‘Tourism and Culture’ (ToC) and ‘Digital’(D). GCPO Action What we are aiming for KPI Action Target/ Milestones Mileston es Timeline Lead Partner responsible for delivery & monitoring Other partners Costs and funding sources EG, TC, JTNZ CG Develop the first phase of Perth Eco-Innovation Park as a strategic site for energy and mobility transition Grow the supply chain, support innovation and create a range of jobs and career opportunities in the clean growth sector. Number of jobs created, Hectares of employment land created Phase 1 enabling infrastructure developed Opportunities promoted March 29 PKC Scottish Enterprise, Scottish Development International £33m - PKC has already committed £3.2m to support design phase – existing budgets and external funding EG, TC, JTNZ CG Develop Binn Eco-Park as a strategic site to support circular economy business opportunities Grow the supply chain, support innovation and create a range of jobs and career opportunities in the clean growth sector. Number of jobs created Master plan agreed Opportunities promoted June 25 Sept 25 (start) Binn Group PKC, Scottish Enterprise, Scottish Development International £20K - Existing budgets and external funding. £20K annually- Existing budgets and external funding EG, TC, JTNZ CG Position and market Perth and Kinross as a leader in energy and mobility transition and the circular economy Grow supply chain, support innovation and attract public and private investments, and create jobs and career opportunities in the clean growth sector Number of registered businesses in energy sector Level of investment attracted. Economic Development marketing and communication Plan incl. Invest in Perth website in place May 25 PKC Scottish Enterprise/ Scottish Development International £20K annually - Existing budgets and external funding Page 49 of 160
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GCPO Action What we are aiming for KPI Action Target/ Milestones Mileston es Timeline Lead Partner responsible for delivery & monitoring Other partners Costs and funding sources EG, TC, JTNZ CG Develop a programme of investable energy transition projects with the private sector Grow supply chain, support innovation and attract public and private investments to create jobs and career opportunities in the clean growth sector Private sector investment leverage. Number of jobs created Strategic Energy Partnership in place Agreed programme Sept 25 Dec 25 PKC Private partners £100K - Existing budgets and external funding TBC – Public and private funding EG, TC, JTNZ ToC Develop the Perth City Centre Development and Design Framework to create a series of investable projects for street scape enhancements, property improvements and new developments which can be taken forward and delivered. Develop and deliver projects to regenerate areas in and around the City Centre which enhance the overall design and economic performance of Perth. Number of projects delivered. Public and private sector funding secured. Approved Perth City Centre Development and Design Network. May 25 (Adoption of Framework) PKC Property owners and other public and private sector partners. Staff time – Existing budgets and external funding EG, TC, JTNZ ToC Prepare for early engagement with residents, businesses and tourism organisations on a local visitor levy. Increased levels of finance to re- invest in projects and activities which enhance the tourism offering in Perth & Kinross. Number of visitors. Direct expenditure. Total employment within the tourism sector. Early engagement decision made. March 25 (initial scoping paper). PKC Visit Scotland Residents. Tourism organisations Staff time – Existing budgets and external funding EG, TC, JTNZ ToC Options appraisal and implementation of recommended approach to deliver strategic and co-ordinated tourism destination marketing activity. Drive up visitation and spend from identified audiences, and establish a joint public-private approach to tourism destination marketing activity. Number of visitors. Direct expenditure. Total employment within the tourism sector. Perth and Kinross Tourism Action Plan. Options appraisal and recommended approach for destination marketing action plan. June 25 June 25 PKC VisitScotland. Businesses operating within the tourism sector. Staff time – Existing budgets and external funding Page 50 of 160
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GCPO Action What we are aiming for KPI Action Target/ Milestones Mileston es Timeline Lead Partner responsible for delivery & monitoring Other partners Costs and funding sources EG, TC, JTNZ ToC Deliver the actions set out in the Strategic Tourism Infrastructure Development Plan. This includes investment in inclusive and accessible infrastructure, waste disposal network on A9, walking and cycling trails, and cycle infrastructure. Improve Perth and Kinross visitor infrastructure to enhance the visitor experience and ensure any developments take into account the requirements of local residents and communities. Number of visitors. Direct expenditure. Total employment within the tourism sector. Assess delivery against timescales set out in the Strategic Tourism Infrastructure Plan. June 25 PKC Visit Scotland. Businesses operating within the tourism sector. Staff time – Existing budgets and external funding TBC (Plan)- Existing budgets and external funding EG, TC, JTNZ ToC Develop and deliver sector specific business support programmes and accelerators for the tourism sector. Support the growth of businesses in the tourism sector including agri- tourism. Total employment in the tourism sector. Tourism specific business support programme developed. Programmes delivered in year 25/26 June 25 PKC Business Gateway GrowBiz Visit Scotland. £40K annually - Existing budgets and external funding EG, TC, JTNZ D Develop and deliver sector specific business support programmes and accelerators for the creative industries and digital sector. Increase the number of start-ups and the growth of existing businesses in the creative industries and digital sector. Number of businesses operating in the creative industries and digital sector. Number of businesses reporting growth in the creative industries and digital sector. Total employment in the creative industries and digital sector. Creative industries and digital specific business support programme developed. Programmes delivered in year 25/26 March 25 PKC Business Gateway GrowBiz WASPS. CodeBase. £40K annually - Existing budgets and external funding Page 51 of 160
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These actions relate to our Grand Challenges: ‘Tackling Inequalities’(TI) and the Prospectus for Regional Growth Priority Opportunities: ‘Skills and Talent’(ST). GC PO Action What we are aiming for KPI Action Target/ Milestones Timelin e Lead Partner responsible for delivery & monitoring Other partners Costs and funding sources TI Work with employers to encourage the adoption of inclusive employment & fair work practices including caring responsibilities Increase the average earnings of people working in Perth and Kinross and reduce the number of households experiencing or at risk of poverty Number of employers adopting fair work practices Business Champions Group created Promotion Campaign Launched Dec 25 March 26 Perthshire Chamber of Commerce, PK Business Partnership PKC £10K – existing budgets £40K – existing budgets and external funding TI ST Provide business and skills support to start-ups, and grow childcare provision which meets the needs of parents/carers Help parents/carers and economically inactive people to enter or re-enter employment Number. of places created Bespoke provision in place Dec 25 Business Gateway, GrowBiz PKC (Education) £60K annually - Existing budgets and external funding TI ST Provide business and skills support to start-ups, and to support individuals to up/reskill to take up job opportunities or self- employment in the health & care sectors. Help carers and economically inactive people in rural communities to re-skill, enter and re-enter employment Number of businesses supported Bespoke provision in place Dec 25 Business Gateway, GrowBiz PKC, PKHCP £60K annually - Existing budgets and external funding TI Expand the Future for Families Programme – an integrated approach to tackling child poverty through a combination of actions to support priority parents Help carers and economically inactive people to re-enter and enter employment and reduce the number of households experiencing or at risk of poverty Number of families supported with positive outcomes New activities programme in place Dec 25 Local Employability Partnership £100K annually - Existing budgets and external funding TI ST Develop a new and comprehensive programme of Sector Skills Academies focussing on local sectors where we know businesses are struggling to recruit – focus likely to be on rural skills; transport and logistics; health & care including. childcare; hospitality & construction. Help carers and economically inactive people to re-enter and enter employment and reduce the number of households experiencing or at risk of poverty Number of individuals successfully completing Academies Programme developed Dec 25 Local Employability Partnership £100K annually – Existing budgets and external funding Page 52 of 160
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To further build on existing local and regional actions, the Partnership is also proposing to deliver the following actions: Action What we are aiming for KPI Action Target/ Milestones Timeline Lead Partner(s) Costs and funding sources Identify existing and scan future available financial resources and agree a process to allocate available financial resources Efficient sharing of financial resources The amount of financial resources shared among partners and the impact on cost savings or project success. Funding sources mapped out Process in place May 25 May 25 Partnership Staff time - Existing budgets and external funding Identify existing and future Partnership’s members capacity and expertise, agree Partnership’s members’ leading and supporting roles for each action and implement co-training programme Efficient sharing of staff resources The number of staff shared/funded among partners and the impact on cost savings or project success. Staff capacity mapped out and roles identified Co-training programme developed May 25 Sept 25 Partnership Staff time - Existing budgets and external funding £10K annually - Existing budgets and external funding Develop and agree robust communication channels including a joint and shared marketing plan Clear joint narrative and communication Joint and shared marketing plan agreed Communication Plan agreed Marketing Plan agreed May 25 Sept 25 Partnership Staff time - Existing budgets and external funding £20K annually - Existing budgets and external funding Identify and agree incentives to sustain customers’ engagement High level of engagement from businesses and people Benefits experienced by businesses and people. Incentives in place Sept 25 Partnership £20K annually - Existing budgets and external funding Contribute to set up a Regional Intelligence Hub Evidence our economic performance, place and sectoral opportunities to support our evidence- based approach Regional Intelligence Hub set up and running Regional Hub terms agreed Sept 25 Partnership £10K annually - Existing budgets and external funding Develop a strong and quality Partnership Efficient partnership working Participation rates in meetings, events, and joint activities. Level of satisfaction among partners measured through feedback. 1st Annual Review March 26 Partnership Staff time - Existing budgets and external funding Page 53 of 160
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4: How we will measure performance The Partnership is proposing the following monitoring arrangements for Perth and Kinross Economic Action Plan. For each specific action: • We will use SMART: specific, measurable, achievable, relevant, and time-bound monitoring, and identify a key performance indicator that will be used to measure progress, performance, and impact. • We will identify milestones. • We will assign roles and responsibilities for action delivery, data collection, analysis, and reporting to ensure accountability and collaboration among partners. We will collect, analyse, and utilise data to track progress, identify potential risks and issues, and provide you and partners with timely and accurate information to support decision- making throughout the duration of the plan. It will be used to identify opportunities for quality improvement and optimisation based on monitoring findings and feedback. The Partnership will regularly monitor the progress of actions to ensure timely completion, and will review the Economic Action Plan annually. The Partnership will agree the format, content, and distribution channels for monitoring reports, ensuring that they are tailored to the needs of various stakeholders and decision- makers. Regular updates on Perth and Kinross Economic Action Plan’s delivery progress, and on local economic performance, will be provided to the public, elected members, Partnership members’ Boards and senior management teams. By implementing these arrangements, the Partnership will aim to ensure transparency, accountability, and effectiveness in the delivery of the Economic Action Plan. Page 54 of 160
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5: How we will organise ourselves To support the delivery of the Economic Action Plan, the Partnership will organise itself as follows: 1. The Partnership will meet at least quarterly. 2. Each member organisation will nominate one individual to represent the organisation and to attend meetings. The organisation can nominate a substitute if the nominated individual cannot attend. A nominated individual can only represent one organisation. 3. The Partnership will elect a chairperson, and the chair will rotate annually. 4. The Partnership will aim to take decision on a consensus basis. If consensus cannot be achieved, a simple majority vote will take place. Every member organisation will have an equal say in the decision making and an equal right to vote. If a conflict of interest arises, the member organisation affected will withdraw from the decision-making process. 5. Any member organisation will be able to escalate issues, risks, or deviations from the plan to the Partnership for discussion and resolution. 6. The Partnership and its member organisations will gather feedback from stakeholders and use findings to drive continuous improvement and optimisation of plan activities. 7. Perth and Kinross Council will support the Partnership’s governance arrangements. 8. The Economic Action Plan and any subsequent annual progress reports will be submitted to Perth and Kinross Council’s relevant Committee for endorsement. 9. The Economic Partnership will link to Tay Cities Region, Scottish and UK bodies and partnerships to ensure alignment to Tay Cities Regional Economic Strategy, Scottish and UK strategies, and to access information and resources. 10. The Economic Partnership will also act as the ‘Economy’ thematic group to deliver Perth and Kinross Council’s Community Plan and Corporate Plan’s Priorities for the Economy. Page 55 of 160
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APPENDIX 1 Perth and Kinross Economic Partnership Who we are Department for Work and Pensions (DWP) DWP is responsible for welfare, pensions and child maintenance policy. As the UK’s biggest public service department, it administers the State Pension and a range of working age, disability and ill health benefits to around 20 million claimants and customers. GrowBiz GrowBiz Scotland (GrowBiz) is a Scottish charitable company. It provides free support services for anyone who is considering becoming self-employed, starting or growing an existing small business or social enterprise in rural Scotland. Elevator (including Business Gateway) Elevator helps entrepreneurs accelerate their businesses through the unique delivery of Business Gateway services across Tayside, and delivers local accelerator programmes. Business Gateway supports anyone who is thinking about starting a business, people starting a business, social enterprises, and growing businesses across the whole of Perth and Kinross. Scottish Enterprise (SE) SE is Scotland’s national economic development agency enabling businesses to innovate and scale to transform Scotland’s economy Skills Development Scotland (SDS) SDS is Scotland’s national skills body contributing to sustainable economic growth by providing Career Information Advice and Guidance to individuals, and working with employers and employer groups on a national, sectoral, regional, local and individual basis; supporting them to recognise and articulate their current and future skills needs to engage in the skills system to ensure it better meets those needs in the short, medium and longer term. Perthshire Tourism Partnership (PTP) PTP was established to bring together public sector organisations and tourism groups based in Perthshire to discuss strategic themes relating to tourism. The group is made up of seven local tourism associations, three collaborative groups, public sector agencies including VisitScotland, Historic Environment Scotland, National Trust for Scotland and Perth & Kinross Council. It is not a constituted group or a funded body. Visit Scotland VisitScotland is Scotland’s national tourist board. Providing advice, information and inspiration to visitors who are planning a trip to Scotland. They support the tourism industry through partnership working with businesses, public agencies and local authorities with the aim to grow Scotland’s visitor economy. Page 56 of 160
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Perth and Kinross Association of Voluntary Services (PKAVS) PKAVS is a large Perthshire charity which has, for over 50 years, helped people to flourish and communities to thrive throughout Perth & Kinross.. Every year, we improve the quality of life of thousands of local people, including adults with mental ill-health, young and adult unpaid carers, volunteers, the local Third Sector, and older people. UHI Perth UHI Perth provides further education and higher education in the City of Perth through a main campus and by distance learning. Perthshire Chamber of Commerce (PCC) PCC is an independent, non-profit making, non-political business membership organisation. Our focus is on championing the issues that matter to our members, helping promote and protect the interests of local businesses, and ensuring the economic future for the communities of Perthshire. Federation of Small Businesses (FSB) FSB is a non-profit making organisation, led by its members, that aims to help small business owners achieve their ambitions. Alongside providing wide-ranging benefits designed to save members time and money, FSB is committed to highlighting and campaigning on the broad range of issues that affect the small business community. This involves working cross-party with political representatives at a local, Scottish, and UK level. In Perth & Kinross, FSB has a dedicated Membership Advisor and Development Manager available to help maximise the value of FSB membership, discuss business issues, and signpost to additional local business support. FSB hosts a series of free online webinars, networking events, and Business Bootcamps to help small business owners make connections, develop their skills, and increase business resilience. Perth and Kinross Business Partnership (PKBP) PKBP brings together Perthshire Chamber of Commerce, GrowBiz Scotland and Perthshire Local, which collectively represent around 3,000 businesses in the region. It aims to give the region a more powerful voice and profile, attract national funding and investment, and collaborate to tackle the challenges facing Perth and satellite towns across the area. Perth and Kinross Council (PKC) PKC is the local government for the Perth and Kinross area and though its 40 councillors democratically elected represents Perth and Kinross citizens. PKC provides public services, including education and learning, social care, waste management, development and planning. Page 57 of 160
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Appendix 3: Examples of Projects & Outcomes Delivered via the Economic Wellbeing Plan Project Outcomes Cost/Funders Parental Employment Support – Future for Families Futures for Families offers a tailored package of support to eligible parents. Whether a client is in work or not, they will receive relevant assistance to progress, with the aim of securing well paid/skilled employment. Our clients all have access to our training grant, digital support, subsidised travel, childcare when moving back into employment, clothing vouchers for work/interviews and the self-employment start up grant. • Since project start the Futures for Families team @ PKC have assisted 407 new families. We currently have 225 active clients, with 136 of these families engaging in 24/25 to date. • Supporting clients into self-employment has become a key focus. The Key Workers have supported a total of 64 clients into newly self-employed businesses between November 2023 and present day, working closely with BG. • Utilising the Elev8 Support and Training Grant, we have supported 29 clients in 2023/24 investing £178,229.43. This activity has risen considerably in 2024/25 as 94 clients have been supported to date. • Since introducing the Digital Support Grant in September 2023, we have financially supported 56 families in or at risk of digital poverty PKC - £300K SG grant - £330K TCD Skills Programme – SME Skills The Tay Cities SME Skills Fund, funded through the Tay Cities Deal and managed by Dundee and Angus College offers a £5,000 grant opportunity to small and medium sized businesses in the Tay Cities region (including Perth and Kinross) to upskill or re-skill their workforces through training provided by academic training providers across the region. Bespoke training can also be created for businesses. To date 17 Perth & Kinross businesses have been supported, funding 97 different training courses, benefitting 757 employees. Tay Cities SME Skills Fund SG via TCD- £2.47M for TC region TCD Skills Programme – Digital Skills The project is designed to address the skills gaps across the Tay Cities Region by supporting individuals access digital skills training and working with businesses and organisations to plug their digital skills gaps. To date the project has supported 529 individuals across the Tay Cities Region (121 from P&K) to access 42 individual training courses including Data & Python, Power BI, Data Science, Data Analytics, Ai, Cybersecurity. For more info. visit Home - Tay Cities Digital Skills Project Phase 1 £2.47M 5 Page 59 of 160
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Skills Passport The Skills Passport Training Grant was devised to offer access to funding for training courses which are unobtainable by any other means, to help individuals with their journey back into employment or business start-up. The grant offers financial support for training courses to enable individuals to overcome barriers to employment, or to sustain better employment opportunities. In 2023 it supported 42 individuals with training qualifications with 32 of those now in employment or self- employment. In 2024, 39 further awards have been awarded to date; with more projected for Q4. £180K p.a. £155K UK SPF £25K PKC Emergency/Covid Business Grants Perth & Kinross Council administered a range of business support grants on behalf of the Scottish Government to assist businesses in the Perth & Kinross area. These grants aimed to provide financial relief to businesses, particularly in the hospitality and tourism sectors, that were required to cease operations due to COVID-19 lockdown restrictions. Over the course of three lockdown periods, from March 2020 to the lifting of restrictions in mid-2022, the Council distributed funds to support local businesses. In total, the council received more than 1800 applications across various funding schemes. And paid out c. £84 million during this period. £84M SG The Green Capital Development Grant The GCDG fund was launched in January 2022 with the specific aim of supporting businesses with green focused capital investment. The funding strategy is devised now, as during the pandemic to leverage private investment into capital projects to increase the total return opportunities for the funding. Supporting just under 50 projects with £943,285 has leveraged in £5M worth of investment. The grant has been an extremely successful initiative that has generated a significant reduction in net carbon emissions throughout Perth & Kinross, whilst simultaneously measurably improving the region’s economy. The capital investment provided has allowed many local businesses to improve their turnover and create additional employment. £943,285 PKC £5M local businesses Visitor Management Infrastructure PKC successfully secured funding of >£900K from the SG’s Rural Tourism Infrastructure Fund towards 3 projects: - • Grandtully Visitor Management Facilities (delivery partner was the Scottish Canoe Assoc.) Project completed September 2023 and included creation of 80 new parking spaces; 6 EV chargers; 4 e- bike chargers; bike shelter & maintenance point; Accessible toilets, showers 7 changing facilities • Loch Leven improvements (delivery partner RSPB) – creating new car park, new visitor centre, café, shop, and gender neutral/ changing places toilets all now open. Improvements include: - 97 additional car parking bays, 4 additional accessibility bays, 12 EV charging points & 2 e-bike charging points; 10 new cycle stands; 12 new toilets. • Aberfeldy Car Park/ River Tay Way - visitor infrastructure at Aberfeldy Car Park for a hub on the new River Tay Way (delivery partner Perth & Kinross Countryside Trust) – improvements include 1 new Accessible toile; 2 Parent/Child Toilets; 2 Changing Rooms; Grey wastewater disposal; Information point & seating area. Total project costs: - Grandtully Total £1.121M Loch Leven £457,508 River Tay Way £522,000 Gigabit Connected Perth & Kinross Our local Gigabit digital infrastructure has been significantly enhanced by public and private investment via funding from the UK Government (DCMS) and the Tay Cities Deal. Spanning 19.5km, Perth’s new, In total Page 60 of 160
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end-to-end full fibre network underpins significant digital infrastructure within the region. Completed by Neos Networks, the network is fully installed and operational. This will be crucial to futureproofing businesses in the area and the wider region against the ever-growing demands of the digital economy. A similar contract was deployed by BT Telecoms focusing on our towns and rural communities. In total the project secured significant external funding: £3.9M DCMS and £1M TCD and was completed in November 2021; 136 public buildings were connected and many 1000’s more residential & business premises can now be connected to Full Fibre due to this investment in PKC properties. It has also led to the development of the Broadband Voucher scheme funded by the UK SPF in 2024. £3.9M UK Govt (DCMS) plus £2M Tay Cities Deal Cross Tay Link Road (CTLR) The CTLR is the biggest infrastructure project ever undertaken by Perth & Kinross Council and planning permission was granted in 2019. It has involved the construction of a new 3-span bridge over the River Tay and a six kilometre stretch of new carriageway linking the A9 and the A93 to Blairgowrie and the A94, just north of Scone. It also includes the construction of two kilometres of realigned dual carriageway on the A9 just north of the Inveralmond Roundabout. The project will improve the local transport network and traffic flow and reduce journey times. It will also enhance pedestrian and cycle safety, increase network capacity as well as significantly reducing traffic congestion and related pollution in Perth city centre. The project has also unlocked housing and commercial land and related business and investment opportunities. It is due to opened in the Spring of this year. £150.5M PKC £110.5M TCD £40M Adapt Your Property Support The Adapt Your Property Fund provides substantial financial assistance to property owners and tenants, enabling them to renovate and repurpose vacant commercial properties. By offering grants of up to £75,000 or 50% of the project costs, this fund encourages the conversion of these spaces into new commercial, community, or residential uses. This initiative not only helps reduce the number of empty properties but also stimulates local economic growth, supports small businesses, and enhances the aesthetic appeal of town and city centers. Projects supported by this fund contribute to local placemaking and townscape improvements, delivering wider community benefits and fostering a sense of local pride. Around £1.5M of grant funding has been awarded to various projects around Perth and Kinross, in return this has seen a further investment of almost £10M in our urban settlements. PKC £1.5M Private owners £10M Perth Museum Perth Museum opened on Easter Weekend 2024 after a £27M redevelopment project of the former Perth City Hall. The project has created a world-class cultural and heritage attraction which highlights the fascinating objects and stories that put Perth and Kinross at the heart of Scotland’s story. At its heart sits the Stone of Destiny, one of Scotland and the UK’s most significant historical objects. Returned to Perthshire for the first time in over 700 years. The project has created 29.5 FTE jobs directly and welcomed over 233,600 visitors by December 2024. £27M in total £17M PKC £10M UKG via the TCD Page 61 of 160
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Pitlochry Festival Theatre Improvements PFT’s transformative VISION Capital Project is part of a story of continuous evolution. At the start of the pandemic when, for reasons of public safety we had an empty building, the decision was made to break up this complex capital project into one we could be delivered in phases. Phase 1 was completed in August 2022, works included a transformed Foyer – bright, open and accessible – and a brand new 172-seat Studio theatre – a flexible space in which to showcase new writing and touring productions. In 2024 Phase 2 works included the replacement of the glass curtain walls which look over the River Tummel, and the refurbishment of the Theatre roof and air systems. Both interventions significantly improved energy efficiency. The final phase commenced in January 2025, with the full restoration of the main Auditorium and stage infrastructure. It will also include further upgrades to visitor facilities and a radical re-imagine of the hospitality and retail spaces. To date £10M+ from Dunard Fund/ Gannochy Trust. £10M UKG via the TCD Broxden Low Carbon Hub The Broxden Low Carbon Transport Hub Project has created an innovative, low carbon transport hub at a key, strategically important site and central node on the Scottish motorway network, at Broxden. It has broadened the range of refuelling facilities and transport modes available, and provides sustainable travel options to residents, businesses and visitors to the region. The project included 15 EV chargers including 6 rapid & 1 disabled access, providing a range of EV charging speeds to accommodate a variety of EV usage patterns. Innovations included a solar canopy, integrated with a battery storage system to hold on-site generated renewable energy. To encourage active travel, new secure bike storage facilities and a public transport information display have also been provided. The project has contributed to the development of an integrated, effective, efficient and low carbon transport system for Perth City and the wider region. £1.2M £790K TCD SG £387K ERDF Page 62 of 160
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Perth and Kinross Council Economy and Infrastructure Committee 5 February 2025 Perth and Kinross Visitor Levy Report by Strategic Lead – Economy, Development & Planning (Report No. 25/28) 1. Purpose 1.1 To explain how the Visitor Levy (Scotland) Act 2024 and the powers granted to local authorities could be applied within Perth and Kinross, and the process for considering this. 1.2 Seek committee approval to commence early engagement on a potential visitor levy scheme for Perth and Kinross, recognising the importance of tourism on the local economy and the need for engagement with interested parties. 2. Recommendations 2.1 It is recommended that the Committee: - Agree the approach and timeline for early engagement on a potential visitor levy scheme for Perth and Kinross set out in section 4.6. - Instruct the Strategic Lead - Economy, Development and Planning to report back on the results of that early engagement and produce a draft Perth and Kinross Visitor Levy Scheme to Council in December 2025, for a decision on whether to proceed to formal consultation or not. 3. Structure of Report 3.1 This report is structured over the following sections: • Section 4: Background/Main Issues • Section 5: Proposals • Section 6: Conclusion • Appendices 4. Background / Main Issues 4.1 In May 2024, MSPs backed legislation – The Visitor Levy (Scotland) Act 2024 – giving local authorities a new power to introduce a visitor levy that would raise money to be re-invested locally on facilities and services substantially for or used by visitors (leisure and business) - enhancing the visitor experience. 6 Page 63 of 160
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In October 2024, the Scottish Government approved the guidance on the visitor levy for local authorities (Appendix 1). 4.2 The Act gives local authorities in Scotland the power to introduce a levy for overnight accommodation based on a percentage of the cost of that accommodation. Local authorities have the power to determine the percentage rate set, the geographical area where it applies and any local exemptions. The authority can also specify a maximum number of nights to apply the levy and whether it applies to all or part(s) of its area. 4.3 The visitor levy does not apply to: • Those using overnight accommodation as their only or primary residence. • Those staying on a dedicated gyspy/traveller site. • Those in receipt of specified UK disability benefits, payments or allowances. 4.4 At this time, the cruise market and motorhomes are not in scope. This will be reviewed nationally on an ongoing basis. 4.5 Local authorities that want to introduce a visitor levy are only able to do so after they have consulted local communities, businesses and the wider tourism sector, through early engagement, formal consultation and then implementation period. In total these processes would take just over 2 years to conclude if the minimum timescales were applied. For Perth and Kinross this means that the earliest date a scheme could come into effect would be Summer 2027. Timeline for engagement/decision-making 4.6 For a visitor levy scheme to be successfully implemented it is important that there is appropriate and effective engagement with a range of interested parties. Visitor levy guidance published by the Scottish Government (Appendix 1) clearly sets out the timescales for this process. 1. Early engagement (approximately 6-12 months) – undertake early engagement with local businesses, residents and other relevant partners to inform a draft visitor levy scheme. 2. Forecasting - alongside early engagement undertake forecasting to assess the potential income generated from a levy. 3. Consultation (12 weeks) – consult on the proposed visitor levy scheme. 4. Implementation period (18 months) – following publication of decision to proceed, the implementation period is intended to allow local authorities, communities and businesses time to prepare for the introduction of the scheme. Page 64 of 160
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5. Proposals 5.1 This report does not seek a decision on implementation. It sets out proposals for early engagement to allow the Council to make an informed decision on whether to introduce a local visitor levy scheme or not. 5.2 It is important to acknowledge that in feedback in the lead up to the national legislation coming into place, there have been reservations expressed, both locally and nationally, about the introduction of a visitor levy scheme. That is why early and ongoing engagement with those most likely to be impacted by the introduction of a scheme is a fundamental part of the proposed approach to exploring the possibility of a scheme in Perth and Kinross. 5.3 The visitor economy is one of the most important sectors in Perth and Kinross, supporting businesses, jobs and communities across the area. This is reflected in our Perth and Kinross Economic Action Plan and the Tay Cities Regional Prospectus for Growth. It is also one of the key action areas under the Council’s Corporate Plan priority of ‘developing a resilient, stronger, and greener local economy’, where we commit to promoting what our city and towns have to offer to businesses, investors and tourists. Nationally, the visitor economy is also one of the Scottish Government’s six key growth sectors. 5.4 What the visitor economy sector in Perth and Kinross looks like: • 2.3 million visits to Perth and Kinross in 2023. • 2.8 nights – average length of stay. • Total economic impact of £641 million for local businesses and communities. • 8,200 full time equivalent jobs supported. 5.5 There are community costs to supporting visitors to our area. This has previously been recognised by Council through investment in the Visitor Ranger Scheme to promote responsible tourism and provide support and guidance to visitors to help minimise the impact visitors to popular parts of Perth and Kinross can have on year-round residents. The visitor levy could provide an opportunity to offset these costs and invest in the visitor economy sector. 5.6 To ensure a planned and effective approach to implementation, VisitScotland guidance on the levy recommends alignment with a local or regional tourism strategy. We are currently refreshing our Perth and Kinross Tourism Strategy and Action Plan. This will be brought to the Economy and Infrastructure Committee on 28 May 2025 and will set out a clear vision for tourism in our area and detail the types of activity that could be supported by a levy, under 4 main areas: • Area promotion • Investment and infrastructure • Market development and internationalisation Page 65 of 160
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• Industry growth and resilience 5.7 Consultation on the Perth and Kinross Tourism Strategy and Action Plan, developed by Perthshire Tourism Partnership, is currently underway. This activity is being carried out with support from VisitScotland, ensuring local, regional and national alignment. 5.8 Through early feedback from this activity, as well as nationally through bodies such as the Scottish Tourism Alliance, concerns have been expressed that with financial pressure on local authorities, the income received from any visitor levy will be used to offset general budget pressures rather than enhancing the visitor offer. Demonstrating the alignment between the Tourism Strategy objectives and the investment of any visitor levy income will be a key part of addressing these concerns as part of our early engagement process. Factors to be taken into consideration when developing a scheme 5.9 The Visitor Levy Guidance (Appendix 1) details a number of issues local authorities should take into account when developing proposals for a local scheme. 5.10 As part of this there is a requirement for local authorities to state whether they will exempt businesses below VAT threshold. This needs to be taken into account at a local level, reflecting the make-up of the sector as there is a potential for small businesses potentially being pushed into a higher tax threshold through the collection of the levy. 5.11 The scheme must specify, among other factors, the area of operation, the percentage rate chargeable and the objectives of the scheme. 5.12 In order to calculate potential revenue for Perth and Kinross, we have commissioned The Moffat Centre, a leading consultancy and research body in the tourism and travel market, to carry out a full assessment of potential income based on overnight stays and any other relevant measures. This is being done in partnership regionally with other authorities as part of the Tay Cities Regional Economic Partnership. Discussions on a levy are also taking place as part of this partnership to determine any potential collaboration, shared opportunities and challenges. 5.13 It is important that any scheme considers an areas price competitiveness and considers the point beyond which visitors may be unwilling to pay for accommodation. This will be considered when drafting the scheme, in partnership with VisitScotland and specialist expertise where appropriate. 5.14 Although there is no requirement for a local authority to provide assistance to liable persons (businesses), local authorities are encouraged to be mindful of the costs incurred by accommodation providers. Page 66 of 160
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5.15 In managing visitor levy income local authorities are required to maintain separate accounts for any net proceeds of a scheme, meaning funds should not be incorporated into a council’s ‘general fund’. However, the visitor levy generates a revenue income which can be used to finance capital borrowing for relevant capital investment. 5.16 While legislation is still relatively new and most other areas considering a scheme are at a similar stage to Perth and Kinross, there are opportunities to learn from other areas. Edinburgh was the first area to go through a process of formal consultation. This ran until the end of December 2024 and full results and a decision have now been taken. The City of Edinburgh Council are proposing a percentage rate of 5% on the first 5 nights of overnight stay. The estimated levels of income are £50 million per annum, starting in July 2026 – subject to council approval of a scheme. The proposed use of funds include: • Administration and contingency costs • City operations and infrastructure (55%) • Culture, heritage and events (35%) • Destination management (10%) • Fixed annual amount: o Housing and tourism mitigation (£5 million) o Participatory budgeting (2%) Early engagement process 5.17 In order to introduce a scheme we are required to, through early engagement with industry and residents, produce a draft scheme. This process is likely to take around 10 months to ensure effective consultation, representation and input from all parties. 5.18 Led by the Council’s Economic Development Team, and supported by a range of internal and external partners, we will: • Carry out an extensive programme of early engagement with local businesses, residents and any other relevant partners to draft a Perth and Kinross Visitor Levy Scheme, in compliance with legislative requirements. • Forecast potential income from a visitor levy. • Gather further feedback on the proposed visitor levy scheme. • Provide regular updates to elected members on progress. • Bring a full report to Council in December 2025, seeking a decision on whether to progress to statutory consultation on the scheme or not. 5.19 If elected members agree to progress, there would then be a formal 12 week consultation period, after which the proposed scheme would be brought back for final approval from Council. As per the legislation, if final approval is given there would then be an implementation period of at least 18 months. The implementation period is intended to allow local authorities, communities, and businesses to prepare for the introduction of a visitor levy scheme. Page 67 of 160
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Decision-making timeline for Perth and Kinross 5.20 Engagement and communication would continue throughout the progress to implementation with a number of opportunities for elected members to consider feedback and whether to progress to the next stage. Even if there is a final decision to implement, a successful visitor levy scheme will require meaningful and sustained engagement throughout its lifetime. For this reason Visitor Levy Forums (“advisory bodies”) need to be set up within 6 months of formal announcement of a scheme. This should include the local authority, industry and tourism sector representatives. This will be progressed if the final decision of Council is to implement a local Visitor Levy Scheme. 6. Conclusion 6.1 A visitor levy could provide indefinite annual funding allowing multi-year investment for transformational and impactful projects over the short, medium and long term, and the ability to leverage additional funds. A local scheme could create significant opportunities for Perth and Kinross. 6.2 Officers therefore recommend that committee approves work to explore a potential Perth and Kinross Visitor Levy Scheme, commencing early engagement to ensure that the views of local businesses, residents and other relevant partners are incorporated in the development of a draft scheme, and brings a report back in December 2025 for a decision on whether to progress. Early engagement period (February-November 2025) •Incorporating forecasting research work •Development of draft Visitor Levy Scheme Committee meeting (December 2025) •Consideration of feedback from consultation activity •Decision on whether to proceed with implementation of draft Visitor Levy Scheme Formal consultation period (12 weeks) Council meeting (Spring 2026) •Consideration of feedback from formal consultation •Decision on whether to proceed Implementation period (18 months) •Preparation for introduction of the scheme Page 68 of 160
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Author Name Designation Contact Details Steve MacDonald Economic Development Manager – Business, Place and Investment EPLCommitteeReports@pkc.gov.uk (01738) 475000 Approved Name Designation Date Serge Merone Strategic Lead – Economy, Development and Planning 29 January 2025 APPENDICES Appendix 1 – Guidance on the Visitor Levy for local authorities (Scottish Government – October 2024). Page 69 of 160
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ANNEX 1. Implications, Assessments, Consultation and Communication Strategic Implications Yes / None Community Plan / Single Outcome Agreement Yes Corporate Plan Yes Resource Implications Financial Yes Workforce Yes Asset Management (land, property, IST) Yes Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal and Governance Yes Risk Yes Consultation Internal Yes External Yes Communication Communications Plan Yes 1. Strategic Implications Community Plan/Single Outcome Agreement 1.1 This report supports all of the priorities within the Community Plan 2022-27. (i) Reducing Poverty (including child poverty, fuel poverty and food poverty) (ii) Mental and physical wellbeing (iii) Digital participation (iv) Skills, learning and development (v) Employability Corporate Plan 1.2 This report supports the objectives within the Corporate Plan:- (i) Children and young people grow up safe, respected, well-educated, and confident in their ability to realise their full potential; (ii) People and businesses are increasingly able to prosper in a local economy which support low carbon ambitions and offers opportunities for all; (iii) People can achieve their best physical and mental health and have access to quality care and support when they need it; (iv) Communities are resilient and physically, digital and socially connected; Page 70 of 160
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(v) Perth and Kinross is a safe and vibrant place, mitigating the impact of climate and environmental change for this and future generations. 2. Resource Implications Financial 2.1 The recommendations in this report do not have direct financial implications. 2.2 Existing Economic Development budgets will be used to progress the work. For example, we have made a contribution at a regional level for The Moffat Centre to carry out an assessment of the levels of revenue that could be generated. 2.3 We will also look for external funding to bring in additional resource if and when required. Workforce 2.4 The recommendations in this report do not have any direct implications for the Council’s workforce. The project will be led and delivered by Perth and Kinross Council Economic Development – Business, Place and Investment Service. Asset Management (land, property, IT) 2.5 There are no direct Asset Management implications arising from this report. 3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. This section should reflect that the proposals have been considered under the Corporate Equalities Impact Assessment process (EqIA) with the following outcome: (i) Assessed as not relevant for the purposes of EqIA Strategic Environmental Assessment 3.2 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. Page 71 of 160
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No further action is required as it does not qualify as a PPS as defined by the Act and is therefore exempt. Sustainability 3.3 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. Under the Climate Change (Scotland) Act 2009 the Council also has a duty relating to climate change and, in exercising its functions must act: • in the way best calculated to delivery of the Act’s emissions reduction targets; • in the way best calculated to deliver any statutory adaptation programmes; and • in a way that it considers most sustainable. Legal and Governance 3.4 The Visitor Levy (Scotland) Act 2024 (the act) gives local authorities the power to impose a levy in respect of persons staying in certain types of accommodation overnight. Risk 3.5 Delaying progress on exploring a local visitor levy risks not maximising potential revenue – due to the long timescales involved. 3.6 A lack of meaningful and comprehensive engagement and consultation risks a lack of industry and resident support for a potential scheme. 3.7 A full risk register will be produced for the full report, including mitigations. 4. Consultation Internal 4.1 The following have been consulted at an early stage. • Economy, Development and Planning • Local Taxes • Convenor, Vice Convenor (Economy and Infrastructure Committee), Council Leader External 4.2 The following have been consulted at an early stage. • VisitScotland • Perth and Kinross Tourism Partnership Page 72 of 160
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• Perth and Kinross Business Tourism Partnership 5. Communication 5.1 In order to engage and consult on this project, we will communicate with a wide range of stakeholders. A full communication plan will be drafted and implemented at the outset of the project. Those to be communicated to include: • Relevant Perth and Kinross Council Services • VisitScotland • Perth and Kinross Tourism Partnership • Perth and Kinross Business Tourism Partnership • Local Tourism Partnerships • Tourism businesses and those in associated sectors • Community Councils 2. BACKGROUND PAPERS 2.1 None. Page 73 of 160
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Guidance on the Visitor Levy for local authorities October 2024 6 Page 75 of 160
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Contents Minister’s Foreword 3 Foreword from VisitScotland 4 01 Power to Introduce a Levy 6 02 Timeline 8 03 Required Content of a Visitor Levy Scheme 11 04 Forecasting 13 05 Early Engagement 16 06 Consultation 21 07 Implementation Period 25 08 Equalities 27 09 Scheme Publication 29 10 Calculation of a Levy 31 11 Rate Setting 38 12 Use of Funds 41 13 Liable Persons 46 14 Assistance for Liable Persons 49 15 Billing of Overnight Accommodation 51 16 Remittance 53 17 Exemptions 58 18 Islands 63 19 Local Flexibilities 65 20 Communication 67 21 Visitor Levy Forum 70 22 Accounting 72 23 Annual Reporting 74 24 Review of a Visitor Levy Scheme 76 25 Compliance 78 26 Internal Review and Appeal 82 27 Registers 84 Images : Front cover, Helix Home of the Kelpies Contents page, John Muir Way, HelensburghPage 76 of 160
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Guidance on the Visitor Levy for local authorities 3 Minister’s Foreword The Scottish Government believes that a visitor levy can be a force for good, delivering benefits for local communities, local authorities, and local businesses. For the first time councils in Scotland now have the power to introduce a visitor levy in their area, if they think it is right and after they have consulted local businesses, communities, and tourism organisations. Alongside the process of Parliamentary scrutiny of the Visitor Levy (Scotland) Act the Scottish Government asked VisitScotland to form an Expert Group, made up of stakeholders reflecting tourism, business, and local government. The purpose of the Group was to develop guidance for local authorities on the use of the new visitor levy power. The Act was amended as it progressed through Parliament to legally require all local authorities to have regard to this Guidance. I therefore welcome this first published edition of the Guidance, and am pleased to formally approve it, in line with the requirements under the Act. It is the fruit of much work by VisitScotland and the Expert Group, considering a large number of issues and producing Guidance that will be useful to not only local authorities, but others with an interest in how best to introduce and administer a visitor levy. I thank all those organisations on the Expert Group who gave their time and expertise to produce this Guidance. The power to introduce a visitor levy is a new and important one for local authorities, and this Guidance will assist them in considering, and if they believe it is right, introducing and administering a visitor levy in the most effective way possible. Ivan McKee MSP Minister for Public Finance Page 77 of 160
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Guidance on the Visitor Levy for local authorities 4 Foreword from VisitScotland As the national tourism agency, VisitScotland’s core purpose is to drive the visitor economy and grow its value to Scotland. We do this in collaboration with the tourism and events industry as we work together to deliver the two national strategies - Scotland Outlook 2030 and Scotland the Perfect Stage. Together, these set out our shared ambitions for Scotland to be the world leader in 21st century tourism and build on our status as a world-leading events destination. The introduction of a visitor levy in Scotland – in line with many other destinations around the world – adds a new and important dimension to these ambitions. The visitor economy is one of Scotland’s most important industries, supporting businesses, jobs and communities across the country. It is one of six Scottish Government growth sectors and is worth £10.7 billion (c.6%) to Scotland’s economy. With a levy, local authorities now have the power to generate revenue specifically for the benefit of the visitor economy. If developed collaboratively between local authorities and businesses, a visitor levy scheme represents a unique and significant opportunity to deliver multi-million-pound annual investment in the sector. Given that critical link to the visitor economy, we expect that local authorities choosing to bring forward proposals will do so after having set out their priorities for development of the sector through local tourism or visitor economy strategies. This approach will ensure that the objectives of a visitor levy brought forward align with the principles of relevant local tourism strategies, as well as other related local, regional and national strategies directly linked to the visitor economy. We know the introduction of a levy is a major change for businesses and we expect local authorities to work closely with the accommodation sector in their area. It is important businesses receive the support they need to be able to collect and remit the levy where it will be charged. The implementation period will be the ideal opportunity to do this but we welcome the opportunities the legislation provides for regular engagement with the sector beyond the introduction of a levy. As chair of the Expert Group, we have brought together the tourism industry, local authorities and government to deliver the statutory guidance for the visitor levy. This document provides local authorities with guidance on the development and implementation of a visitor levy. It may also be of use to accommodation providers responsible for collecting and remitting a levy, and others with an interest in a proposed scheme. We will continue to consider and review the guidance as local authorities bring forward proposals for visitor levy schemes and to reflect the complexities of certain accommodation sectors. This will be done through continued collaboration with the industry and local authorities as we work to ensure that the introduction of any visitor levy helps destinations deliver on their ambitions for sustainable tourism. Page 78 of 160
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01 Power to Introduce a Levy V&A Dundee and RRS Discovery Page 79 of 160
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Guidance on the Visitor Levy for local authorities 6 01 Power to Introduce a Levy 1. The Visitor Levy (Scotland) Act 2024 (referred to hereafter as “the Act”), was passed by the Scottish Parliament in May 2024, and received Royal Assent on 5th July 2024. The Act gives local authorities in Scotland the power to introduce a levy that is charged on the purchase of overnight accommodation at a percentage rate. It will be for each local authority to decide after consultation, whether or not to introduce a visitor levy (VL) scheme. 2. A local authority will also determine many of the elements of a VL scheme, such as the percentage rate set, the geographical area where it applies, and local exemptions from paying a visitor levy. 3. This guidance is for local authorities that are considering developing and implementing a VL scheme in their area. It may also be of use to accommodation providers responsible for collecting and remitting a levy, and others with an interest in a proposed VL scheme. The guidance has been developed collaboratively between local authorities and tourism and accommodation business organisations, working together in an Expert Group led by VisitScotland. 4. This guidance is not intended to be exhaustive, nor is it an authoritative statement of the law. Local authorities should seek their own legal advice if, and where, they are unsure of their legal obligations or the lawfulness of a proposed VL scheme. This guidance may be reviewed and updated from time to time. Types of accommodation to which a levy applies 5. Under the Act, overnight accommodation is considered a room or area that is used by a visitor for residential purposes, but is not their only or usual place of residence. Therefore a visitor levy does not apply to accommodation that is being used as someone’s only or usual place of residence. 6. The types of accommodation included within scope of the legislation are: a. hotels b. hostels c. guest houses d. bed and breakfast e. self-catering f. camping sites g. caravan parks h. accommodation in a vehicle, or on board a vessel, which is permanently or predominantly situated in one place i. any other place at which a room or area is offered by the occupier for residential purposes otherwise than as a visitor’s only or usual place of residence 7. A visitor levy cannot be charged for accommodation on local authority gypsy and traveller sites, and registered social landlord gypsy and traveller sites. It also cannot be charged for accommodation in a vehicle, or on board a vessel that is undertaking a journey involving one or more overnight stops. 8. Scottish Ministers may amend the Act to change the type of accommodation covered, vary the description of the accommodation type, or remove a type of accommodation. Before making any of these changes, Scottish Ministers must consult local authorities, representatives of communities, businesses engaged in tourism and tourist organisations, and other appropriate persons. Where Scottish Ministers seek to change accommodation types, this would need to be approved by the Scottish Parliament. Page 80 of 160
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02 Timeline The Old Man of Storr, Isle of Skye Page 81 of 160
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02 Timeline 1. Many of the activities required to be carried out by local authorities as part of the introduction, implementation, or modification of a VL scheme will need to be carried out in a specific order. 2. Beyond these statutory requirements, it is recommended that local authorities also carry out a range of other tasks, which although non-statutory, will ensure that a VL scheme is introduced in a manner which the Expert Group considers good practice. Figure 1 and Table 1 outline both the statutory and non-statutory tasks and provide an indicative timeline presenting the order in which events and activities should take place during the introduction of a VL scheme. 3. This timeline is intended to provide a general guide, and exact dates that activity is undertaken will be for the local authority to determine according to individual local circumstances. 4. It is also recommended that, where possible, local authorities consider how existing approaches can be utilised in the completion of these activities. Figure 1: Indicative timeline of activities to be carried out establishing a VL scheme Guidance on the Visitor Levy for local authorities 8 Forecasting Approximately 6 -12 months Approximately 2 years Normally 12 weeks At least 18 months VL Scheme comes into force Early Engagement Consultation Implementation Page 82 of 160
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Guidance on the Visitor Levy for local authorities 9 Table 1: Indicative timeline of activities to be carried out establishing a VL scheme Statutory Requirement Local authorities undertake work to understand their local visitor accommodation sector and set up necessary cross working between local authority departments. See Chapter 04 Forecasting. Local authorities engage with stakeholders to develop visitor levy proposal, which may include considerations such as exemptions and their potential impact. See Chapter 05 Early Engagement. Discussion at committees within the local authority. Debate at relevant local authority committee. Local authorities to prepare for consultation. See Chapter 06 Consultation. Objectives of VL scheme to be developed. ✓ Impact studies to be carried out as required. ✓ Develop draft VL scheme to be proposed. Plans for the use of net proceeds of a VL scheme to be developed. See Chapter 12 Use of Funds. Agreement of draft VL scheme by the local authority. Public consultation on entire draft VL scheme proposal (standard practice is 12 weeks). See Chapter 06 Consultation ✓ Analyse and report findings to the local authority committee, including potential changes to a VL scheme in light of consultation. See Chapter 06 Consultation. Formal public announcement of decision on whether or not to introduce a VL scheme (if the decision is to introduce a VL scheme, the proposed start date for a scheme is to be set out). ✓ Minimum 18-month implementation period begins. See Chapter 07 Implementation Period. ✓ Scottish Ministers to be notified of decision to introduce Levy. ✓ Local authorities to establish a Visitor Levy Forum within six months of formal public announcement of a decision to introduce a VL scheme. See Chapter 21 Visitor Levy Forum. ✓ Local authorities to advise businesses of their liability and prepare administration of VL scheme. Implementation period expires. VL scheme comes into force, and the visitor levy is collected and remitted to the local authority. See Chapter 16 Remittance. ✓ Annual report on the scheme. See Chapter 23 Annual Reporting ✓ Page 83 of 160
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03 Required Content of a Visitor Levy Scheme Inner Forth Cycle Route Page 84 of 160
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03 Required Content of a Visitor Levy Scheme 1. Local authorities wishing to introduce a visitor levy in their area are required to create a VL scheme. A VL scheme is required by the Act to specify: a. the geographical area covered by a VL scheme (two or more local authorities may act jointly to make a VL scheme) b. the date on which a VL scheme comes into force c. the period of time in which a VL scheme will be active (which can be indefinitely) d. the times during a VL scheme period when the purchase of accommodation will be liable to a visitor levy charge (which can be at all times) e. the percentage rate of the visitor levy f. the scheme’s objectives g. the arrangements for review of decisions that relate to a scheme h. any exemptions that mean a visitor levy is not payable or may be reimbursed (which must include an exemption where the visitor is in receipt of disability benefits specified in the Act) i. the arrangements for the administration of any exemptions j. the evidence required and manner in which it can be proved that the exemption related to specified disability benefits applies to a relevant transaction k. the way the local authority intends to make decisions on the use of the net proceeds from a visitor levy l. whether or not the visitor levy is payable in relation to accommodation with an annual turnover below the VAT threshold Guidance on the Visitor Levy for local authorities 11 Page 85 of 160
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04 Forecasting Edinburgh Fringe Festival performers Page 86 of 160
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Guidance on the Visitor Levy for local authorities 13 04 Forecasting 1. The forecasting of revenue from a visitor levy is an important process to help understand the viability of introducing a visitor levy. Being able to estimate the size of the expected receipts from specific accommodation providers, through establishing an early register of accommodation businesses, may also assist compliance once the VL scheme is operational. 2. Forecast estimates will be impacted by choices on the design of a scheme, including what exemptions are put in place, the geographical area it applies to and the percentage rate of the charge. Revenue forecasting 3. There are different approaches to forecasting future revenue receipts, and a variety of different secondary data sources that can help with such forecasting are available for free or on paid subscription. Quality of information is likely to be variable, and estimates should acknowledge the levels of uncertainty or gaps in coverage, so reasonable expectations are set. 4. To calculate the expected forecasted revenue, a variety of data could be used to help with this work. For example, local authorities may wish to prepare data on the supply of inventory (rooms, keys, beds) the number of places to stay in the area (properties), the times through the year these are occupied (occupancy rates), and average tariffs for different accommodation types. Local authorities may also find it helpful to use publicly available data relating to Non-Domestic Rates to identify the number of each accommodation type included in the scope of the VL scheme. 5. In very simple terms, Table 2 is an example of what a local authority could develop as a basis for any initial estimation. Table 2: An example of what a local authority could develop as a basis for initial forecasting Accommodation type1 Number of rooms Occupancy rate Average cost per room Revenue from 1% of occupied room cost Current hotel provision 6,414 66.7% £65.38 £1.02m New hotels or expansions currently under construction 325 66.7% £65.38 £51,730 Guest houses / B&B 210 39.0% £55.00 £16,441 Camping (berths) 40 25.0% £25.00 £912 Youth hostels (beds) 50 45.0% £16.50 £1,355 Self-catering / short term lets 525 47.0% £50.00 £45,031 Total 7,564 £1.135m 1When forecasting the room rates used, it will need to be net of additional extras (e.g. food), include whether accommodation is available 365 days a year or seasonal, and include the impact of exemptions. Page 87 of 160
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Guidance on the Visitor Levy for local authorities 14 6. Where local data is difficult to come by, local authorities may wish to seek national level information from sources such as VisitScotland. Forecasting ongoing costs of administration 7. Under the Act, the administrative costs to a local authority of a VL scheme can be taken from the funds raised by a scheme. 8. The local authority could base these costs on their experience of administering other local taxes, including enforcement activity, or from engagement with other municipalities in Europe with direct experience of administrating these types of taxes. 9. Local authorities must annually report a VL scheme income from the period, the quantity spend, and the quantity used to support the administration of the visitor levy. For further information, see Chapter 22 Accounting. Delegation of enforcement and collection 10. The Act enables a local authority to delegate collection and enforcement functions. This allows it to put in place arrangements with a third party to handle these aspects in relation to a VL scheme. 11. A local authority could, therefore, perform the various collection and enforcement functions itself or make arrangements with another body (e.g. an administrative and professional services company) to carry out the administration of a visitor levy. Under the Act, a local authority can enter into an agreement with another local authority to carry out these functions, as is currently the practice for some elements of existing local taxes. 12. Such collection activity might involve the processing of a combination of business data and personal data (in the context of a business), which will be in scope of the UK General Data Protection Regulation (GDPR). When contracting for such a service, the local authority will need to make sure that the contract is compliant with UK GDPR Article 28 (processor) and that each processor involved will support the local authority in upholding data subject rights. Costs for local authorities setting up a VL scheme 13. The up-front set-up and decision-making costs may need to be financed within existing local authority budgets; however, it should be borne in mind that these costs could be offset against future revenues raised through a VL scheme. It will be up to the local authority to decide how best this can be carried out. Page 88 of 160
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05 Early Engagement Sands of Meal, Shetland©Euan Myles Page 89 of 160
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05 Early Engagement 1. Local authorities considering introducing a VL scheme in their area are strongly recommended to undertake engagement around proposals for a scheme, prior to the consultation. Although not statutory, this is considered, by the Expert Group, to be best practice. To assist with planning this engagement an example is given on page 19 outlining the approach the City of Edinburgh Council has taken. 2. This approach will enable local authorities to bring forward proposals that are well understood by those who will be paying, collecting and remitting the levy. It will also be a collaborative way to help generate industry support for a VL scheme. 3. Local authorities will have their own well-established processes and networks for engaging with stakeholders. Local authorities should make use of these networks and processes, engaging through them to develop proposals in advance of the consultation. 4. The following chapter of the guidance outlines some key principles that local authorities should consider when commencing early engagement. Context 5. When developing approaches to early engagement, local authorities should first have an understanding of what is needed to bring forward a consultation. For the consultation the Act requires a local authority to prepare: a. an outline of a proposed VL scheme b. a statement about the objectives of the proposal, indicating how the authority intends to measure and report on those objectives c. an assessment of the impacts of the proposal d. a statement about the cases or circumstances where a visitor levy will not be payable or may be reimbursed 6. In order to establish this information, the local authority proposing a VL scheme will need to undertake a level of engagement, with relevant stakeholders, deemed appropriate to inform the consultation process. General principles 7. The following ‘general principles’ will help guide local authorities focus early engagement to inform preparation for the required consultation. In particular these three areas are considered: a. a scheme outline b. scheme objectives c. scheme impact Guidance on the Visitor Levy for local authorities 16 Page 90 of 160
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Guidance on the Visitor Levy for local authorities 17 Scheme outline 8. Local authority priorities: in developing an outline for a VL scheme, a local authority should identify its own priorities for its development and delivery. A local authority must have regard to, and align with, the principles of relevant local tourism strategies, as well as other related local, regional and national strategies, which are directly linked to the visitor economy. This should be considered before moving any further. The local authority should also take necessary steps to ensure all relevant individuals / departments within the local authority are sighted on early development of a VL scheme outline. 9. Local stakeholders: in developing an outline for a VL scheme, a local authority should identify and engage with stakeholders who will have an interest in such a scheme. This interest can be a: a. business interest (they will be collecting and remitting the levy) b. resident interest (they may wish to know how the funds will be spent) c. tourism organisation interests (local and national tourism organisations with an interest in how the visitor levy will operate and funds be used, such as VisitScotland) d. other public body interests (such as national parks who will have an interest in a potential VL scheme) e. visitor interests f. or other interest (such as organisations who may be able to provide advice and support on the collection of a self-assessed levy, e.g. Revenue Scotland) Identifying the right stakeholders for this process will be easier if these stakeholders have been engaged through the existing tourism strategy process. Local authorities will have long-established networks and processes which they should be able to rely on when identifying stakeholders. 10. Engagement: once stakeholders have been identified, local authorities should make efforts to engage them in understanding their priorities. Simultaneously, local authorities should take this opportunity to test early thinking with these stakeholders. 11. Scheme development: having done this early work, a local authority should be in a position to develop a scheme outline that is familiar to key stakeholders, is cognisant of their views, reflects the aspirations of the local tourism strategy, and other related local, regional and national strategies, which are directly linked to the visitor economy. Page 91 of 160
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Guidance on the Visitor Levy for local authorities 18 Scheme objectives 12. Tourism strategy: in developing an outline for a VL scheme, a local authority should be able to draw a clear link to the objectives of its local tourism strategy and other related local, regional and national strategies. Having the objectives of the levy closely linked to this will allow the local authority to ensure that the VL scheme objectives link to wider strategic thinking on the visitor economy. 13. Local authority priorities: local authorities should consider the priorities for their own areas and ensure that the stakeholders they engage with during early engagement, understand these priorities, so that a VL scheme’s objectives link to the wider work, and strategic focus of the local authority. Scheme impacts 14. Assessment: local authorities are required to assess the impacts of their proposal as part of the consultation. In order to inform this process, we recommend that local authorities undertake work to identify impacts on: a. businesses collecting and remitting the levy b. visitors paying the levy c. communities who may benefit from the levy d. local authorities administering the levy 15. Work to assess the impact of a proposed VL scheme should be undertaken openly and transparently, working with stakeholders appropriately. For more information, see Chapter 18 Islands and Chapter 08 Equalities. 16. Local authorities should engage with liable persons to develop awareness of the costs that will be incurred by a liable person collecting and remitting a levy at this stage of the process. Local authorities may wish to consider engaging with liable persons around possible options for addressing those costs, which could then be included as part of the statutory consultation process. 17. Work will also be required to assess the potential income generated at an early stage. For further information, see Chapter 04 Forecasting. 18. The following case study example may aid local authorities as they look to develop their early engagement approach. Page 92 of 160
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Guidance on the Visitor Levy for local authorities 19 City of Edinburgh Council Early Engagement Over a significant period of time, City of Edinburgh Council has conducted engagement focusing on the below elements, which subsequently play a crucial role in shaping the development of their VL scheme: • understanding the powers given by the new legislation - what choices a local authority can make, and the sequence of stages they need to follow • access and knowledge of local data – to estimate the expected revenue receipts, as well as understand the range and diversity of the accommodation base in the area • engage out – utilising existing networks to facilitate regular and frequent engagement with the sectors that will be impacted. For example, Edinburgh Strategic Implementation Group, Edinburgh Tourism Action Group, other business networks, businesses, visitors, community councils and residents. This also included a visitor levy survey aimed at visitors and residents, generating almost 4,000 responses • engage in – identify the internal workstreams to implement the visitor levy, e.g. collections, enforcement, finance, media team and economy teams etc Page 93 of 160
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06 Consultation Discover Scotland Event Page 94 of 160
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Guidance on the Visitor Levy for local authorities 21 06 Consultation 1. Under the Act, a local authority looking to introduce a VL scheme must prepare and publicise an outline of a scheme, a statement of a scheme’s objectives, and an assessment of the impacts of the proposal. It should also include a statement about when a levy will not be payable or may be reimbursed. 2. The Act requires a local authority to consult on a proposed VL scheme with those it considers representative of communities, businesses engaged in tourism, and local tourist organisations. Following the consultation, the local authority must prepare and publicise a report which summarises the consultation responses, states whether or not the authority intends to proceed with a scheme (or a scheme as modified in light of the consultation), and set out the authority’s reasons for whether or not it intends to proceed. 3. Guidance on consultation best practice can be found in Scottish Government Consultation Good Practice Guidance, and it is recommended a local authority considering a consultation on a visitor levy takes that guidance into account when developing and carrying out any consultation. Proposed scheme 4. Under the Act, a local authority must prepare and publicise: a. an outline of the proposed scheme or (as the case may be) a scheme as it is proposed to be modified (“the proposal”) b. a statement about the objectives of the proposal, including how the authority intends to measure, and report on the achievement of those objectives c. an assessment of the impacts of the proposal in the authority’s area d. a statement about the cases or circumstances where a visitor levy will not be payable or may be reimbursed 5. It is recommended that any proposal for consultation should cover all the elements required in a scheme to allow for an appropriate level of input and discussion with stakeholders. For further information, see Chapter 03 Required Content of a VL Scheme. 6. In setting out a statement about the objectives of a proposed scheme, it is recommended local authorities set out how they have considered a scheme will benefit the local visitor economy. In reporting and measuring this a local authority could use existing mechanisms aligned to an adopted local tourism strategy, and other related local, regional or national strategies which are directly linked to the visitor economy. 7. The local authority should also set out how it intends to capture the wider impacts of the proposal, including the impacts on businesses, visitors and residents. 8. Local authorities should have an existing awareness of the costs incurred by liable persons collecting and remitting a levy through early engagement. See Chapter 05 Early Engagement for more information. Where a local authority decides that assistance to a liable person in addressing costs may be appropriate, possible options for this should be included in the consultation. 9. The local authority should make documents relating to its consultation process available on the local authority website, and at the local authority’s main office during normal business hours. Page 95 of 160
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Guidance on the Visitor Levy for local authorities 22 Consultation process 10. The Act sets out a requirement to consult such persons as the authority considers to be representative of communities, businesses engaged in tourism and tourist organisations in its area, and any such other persons the authority considers likely to be affected by the proposal. 11. It is for the local authority to determine who the appropriate consultees may be in each circumstance. In determining who to consult it may be useful for local authorities to reflect on the make-up of the visitor economy in their own area and ensure those who will have an interest are captured. Local authorities may consider the following interested parties: a. overnight accommodation businesses in the local authority area that may be responsible for collecting and remitting a proposed levy b. national, regional and local tourism organisations (including VisitScotland) c. local residents d. neighbouring local authorities e. visitors to the local authority area 12. Where a proposed VL scheme area overlaps with an area designated as a National Park, the National Park authority must be consulted. 13. In general, it is recommended that the local authority take steps, as it considers appropriate, for ensuring that adequate publicity about the proposal is given to persons likely to be affected by it. 14. It will be up to the local authority to determine how long it intends to run a consultation for. The timescale chosen should reflect the complex nature of proposals, which relate to self-assessed taxation, which will likely be new to both businesses, and local authorities. In general, it is recommended that 12 weeks is an appropriate time for the formal consultation to take place. 15. In considering timings for their consultation, local authorities should reflect on the legislative requirement to allow at least 18 months to have passed between the date of the local authority’s decision to introduce a scheme, and the date on which a scheme will come into force. Page 96 of 160
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Guidance on the Visitor Levy for local authorities 23 16. Where a modification to a scheme is proposed, an implementation period of at least 18 months will still apply if the modification: a. expands a scheme area b. increases the percentage rate(s) of the levy c. or removes exemptions Where other modifications are proposed, these may come into effect at a time of the local authorities choosing. This would follow the publication of the relevant consultation report. Consultation report 17. The Act requires a local authority to prepare and publish a consultation report which: a. summarises the consultation responses received b. states whether or not the authority intend to proceed with the proposal (or proposal as modified in light of the consultation) c. sets out the authority’s reasons for whether or not it intends to proceed 18. The local authority may also wish to include information on the number of consultation responses, an overview of who responded to the consultation, and the local authority’s response to the points raised in the consultation responses. 19. Local authorities should carefully consider this report, and their response to the issues raised in consultation, to demonstrate good decision-making in relation to the proposals, and the decision to take forward a scheme, not take it forward, or take it forward adapted in light of the consultation. 20. The consultation report should be published on the local authority’s website and at the local authority’s main office during normal business hours. Page 97 of 160
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Bike Bute Hire 07 Implementation Period Page 98 of 160
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Guidance on the Visitor Levy for local authorities 25 07 Implementation Period 1. As set out in the Act, a VL scheme will come into force at least 18 months after the date on which the local authority publishes a report, summarising the consultation responses received, and stating that it intends to proceed with the original proposal or a significant modification to a proposal. This is the implementation period. It will be for the local authority to ensure they communicate the beginning of the implementation period to relevant stakeholders. For further information, see Chapter 02 Timeline and Chapter 20 Communication. 2. This implementation period must be at least 18 months and is intended to allow local authorities, communities, and businesses to prepare for the introduction of a VL scheme, or to prepare for upcoming changes to an existing VL scheme, as agreed to be introduced by the local authority. 3. Within the implementation period, local authorities are encouraged to support key stakeholders, including accommodation businesses collecting and remitting the levy, and community organisations in conducting preparatory work ahead of a VL scheme coming into force. This preparatory work will be important in ensuring an efficient start to a VL scheme. 4. Work conducted in the implementation period should include ensuring that key stakeholders within the local visitor economy (including overnight visitors) are well informed of upcoming changes associated with the VL scheme. This includes both key information associated with a scheme, such as the percentage rate and geographic coverage, as well as information on the objectives of a scheme, and any plans for the use of funds. For further information, see Chapter 20 Communication. 5. For accommodation providers, local authorities may wish to conduct more targeted engagement, providing specific information on the technical aspects of a VL scheme. For further information, see Chapter 05 Early Engagement. 6. In this period, local authorities will need to communicate to businesses when they are expected to begin charging and collecting the visitor levy. Local authorities can also set out to businesses, expectations around remittance/return and payment of the levy, noting that this can only be done for overnight stays that have been occupied in the reporting period. 7. If, through early engagement and consultation, a local authority has chosen to take forward measures to help mitigate costs to businesses as part of a VL scheme, the local authority should take appropriate steps to communicate and implement those measures during this period. 8. It should be noted that the above is not intended to be an exhaustive list of where, and how, local authorities should engage with accommodation providers throughout the implementation period. It is anticipated that a successful VL scheme will see meaningful, and sustained engagement throughout the lifetime of a scheme. For further information, see Chapter 21 Visitor Levy Forum. Page 99 of 160
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08 Equalities 1. The Act does not place specific equality duties on a local authority in relation to a VL scheme. However, as public bodies there are requirements related to equalities that will impact on a local authority as it develops, introduces, and administers a VL scheme. 2. It is therefore recommended that local authorities planning to introduce or modify a VL scheme start by considering duties and requirements placed on them under existing legislation, such as the Public Sector Equality Duty, as contained in the 2010 Equality Act, and the 2010 Equality Act (Specific Duties) (Scotland) Regulations 2012, as amended. These pieces of legislation require local authorities to: a. report on mainstreaming the equality duty b. publicise equality outcomes and reporting progress c. assess and review the equality impact of policies and practices d. ensure publication of reports and data on equalities is accessible 3. Through adhering to the duties outlined in the Equality Act 2010 and the Equality Act 2010 (Specific Duties) (Scotland) Regulations 2012, as amended, it is believed that local authorities can mitigate the potential for equalities-related issues to occur within the design, implementation, and modification of a VL scheme. 4. However, it is also recommended that local authorities further consider the potential for equalities issues to arise in the implementation or modification of a scheme. 5. Specifically, some of the conditions which are used to define exemptions from the levy charge as set out in Chapter 17 Exemptions, are considered Special Category data. When this is the case, each controller will need to ensure that their processing activities for the administration of exemptions, and associated reimbursements, have an appropriate UK GDPR Article 6 lawful reason for processing, accompanied by an appropriate exemption under UK GDPR Art 9 (Processing of special categories of personal data). Similar consideration should be given to local exemptions should a local authority seek to bring any forward. 6. It is recommended that local authorities actively consider equalities-related issues with regards to the accessibility of messaging and communication. Under existing legislation local authorities are required to ensure that reporting on equalities is accessible. It is recommended that when publishing and communicating with regards to the implementation or modification of a VL scheme, local authorities follow best practice in this area. 7. Due to the potential impact of a VL scheme on a wide range of stakeholders, including visitors speaking different languages, local authorities may wish to further consider the demographic profile of those impacted by a VL scheme (such as residents, businesses or overnight visitors) in messaging and communication. 8. It is recommended that local authorities actively consider the potential for equality-related issues to arise within the consultation process, including when determining consultees, publicising a consultation, and publishing the results through a consultation report. Guidance on the Visitor Levy for local authorities 27 Page 101 of 160
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Rhoderick Dhu Viewpoint, Loch Lomond and Trossachs National Park 09 Scheme Publication Page 102 of 160
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09 Scheme Publication 1. Once a local authority has agreed to proceed with the introduction of a VL scheme in its area, it must publish its decision to do so. The Act requires a local authority to: a. notify Scottish Ministers of its decision to introduce a VL scheme b. publicise its decision to introduce a VL scheme and the date on which a VL scheme will come into force When to publish 2. The Act requires a local authority to publicise a scheme “as soon as reasonably practicable”. It is recommended that this publicity takes place no later than two months after the local authority’s decision to proceed. Notifying stakeholders 3. The Act requires a local authority to notify Scottish Ministers of its decision to introduce a VL scheme. A local authority may wish to consider how best to communicate the decision to introduce a VL scheme with other stakeholders. 4. In particular, a local authority will need to consider how best to notify those accommodation providers who will be collecting and remitting the levy. Consideration will also be needed on how best to notify accommodation providers of the transitional arrangements for a VL scheme, in particular which bookings made during the implementation period will be liable for the levy. For further information, see Chapter 20 Communication. Guidance on the Visitor Levy for local authorities 29 Page 103 of 160
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10 Calculation of a Levy The Watchers at Corgarff, Cairngorms National ParkPage 104 of 160
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10 Calculation of a Levy 1. The Act sets out the calculation to be applied in determining the amount of a visitor levy that is to be collected and remitted to the local authority. This calculation multiplies the accommodation portion of the transaction by the percentage rate set by the local authority. 2. There is no statutory cap on the maximum number of nights that an overnight visitor would be required to pay a visitor levy. However, a local authority may wish to consider creating a local cap in its VL scheme. This cap could be in the form of a monetary value or represent a maximum number of nights on which the levy applies. 3. In applying a local cap, local authorities should work with stakeholders to consider the impact this would have on visitors, businesses, and potential revenue. For further information, see Chapter 04 Forecasting. The rationale behind the development of a maximum cap should correspond with the objectives of the VL scheme, and local authorities will need to consider the impact of a cap on the administration of a VL scheme. 4. Under the Act, the accommodation portion refers only to the amount of the chargeable transaction that is attributable to the provision of the overnight accommodation. Examples of what this does not include are: a. meals or drinks b. parking for a vehicle c. laundry facilities or services for guests d. entertainment e. leisure facilities f. transportation to and from the accommodation 5. To aid in the calculation of a levy, it is recommended that local authorities ensure that an appropriate amount of information is provided by the liable person to validate figures submitted in the return. Similarly, it is recommended that local authorities provide liable persons with appropriate support. The powers available to local authorities to obtain this information are set out in section 73 and 74 of the Act. For further information, see Chapter 16 Remittance, Chapter 14 Assistance for Liable Persons and Chapter 07 on Implementation Period. Guidance on the Visitor Levy for local authorities 31 Page 105 of 160
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Guidance on the Visitor Levy for local authorities 32 Disability exemption A visitor has booked a hotel room for three nights at a total cost of £150 for the accommodation portion of the transaction. The visitor booked the room directly via the hotel website. The local authority has set a visitor levy charge at 4%. The visitor is in receipt of Disability Living Allowance payments as specified in Section 14 of the Act and is therefore exempt to pay the levy charge (they may still have to pay and be reimbursed). If the local authority chooses to operate exemptions via a process of reimbursement, the following calculation applies: £150 x 4%. As a result, the amount of levy chargeable by the individual to the accommodation provider would be £6, and the accommodation provider would subsequently remit this £6 payment to the local authority. In this example the local authority has put in place a reimbursement process. Therefore, following the completion of their stay, the visitor in receipt of specified disability allowance payments would follow the steps outlined by the local authority to receive a £6 reimbursement from the local authority. If this reimbursement application is successful, the final amount of levy charge retained by the local authority would be £0. If a visitor in receipt of one of the payments outlined in Section 14 of the Act is part of a larger group of overnight visitors, including visitors not covered by Section 14 of the Act, the local authority will decide how calculations to determine levy liability are conducted. For further information, see Chapter 17 Exemptions. Seasonal rate setting As set out in Section 14 of the Act, local authorities have the power to apply a visitor levy charge at certain times of the year, this includes applying different percentage rates at different times of the year. This must be set out in the content of the VL scheme produced by the local authority following the consultation. Examples of how this may operate in practice are set out below: • A visitor has booked self-catering accommodation for a total of seven nights at a total cost of £490 for the accommodation portion of the transaction. The visitor booked the accommodation via an online booking platform. The visit is taking place in March. The VL scheme operated by the local authority only applies a levy charge of 2% in the period of January to April. The following calculation therefore applies: £490 x 2%. As a result, the total amount of levy to be collected and remitted to the local authority would be £9.80. • Another visitor has booked the same accommodation, via the same online booking platform, for a total of five nights at a total cost of £425. This visit is taking place in July. The VL scheme operated by the local authority applies an increased percentage rate during June to September of 5%. The following calculation therefore applies: £425 x 5%. The total amount of levy to be collected and remitted to the local authority would be £21.25. 6. The following examples may aid local authorities and accommodation providers in calculating a levy: Page 106 of 160
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Guidance on the Visitor Levy for local authorities 33 Bed and breakfast Visitor C stays in bed and breakfast accommodation for a total of six nights at a cost of £480. This total cost includes breakfast supplied by the accommodation providers. The local authority has a set a visitor levy charge at 3%. However, the levy only applies to the accommodation portion of a transaction. The accommodation provider calculates that the cost of the breakfast per day is £6. This amounts to £36 for the duration of the stay. For the purposes of calculating the levy charge, this amount is therefore deducted from the total cost paid by the visitor. The following calculation therefore applies: (£480 – (£6 x 6)) x 3%. The total amount of levy to be collected and remitted to the local authority would be £13.32. Hotel Visitor D stays in a hotel for five nights at a total cost of £250 for the accommodation portion of the transaction. The local authority has set a visitor levy charge at 5%. The calculation to determine the levy amount chargeable can therefore be represented as follows: £250 x 5%. The amount of levy to be collected and remitted to the local authority would be £12.50. Visitor E stays in a hotel for three nights at a total cost of £600 for the accommodation portion of the transaction. The local authority has set a visitor levy charge at 4% but has introduced a maximum monetary cap on the levy of £20 per stay. The calculation to determine the levy amount chargeable can therefore be represented as follows: £600 x 4%. The calculation of the levy is therefore £24. However, because of the maximum monetary cap applied by the local authority, the overall amount of levy to be collected and remitted to the local authority would be reduced to £20. Self-catering Visitor F stays in self-catering accommodation for 14 nights at a cost of £120 per night for the accommodation portion of the transaction. The local authority has set a visitor levy charge at 3% and has applied a local maximum cap on the number of nights at seven consecutive nights. The cost of the accommodation portion relevant to the calculation is therefore reduced from £1,680 to £840. As a result, the calculation to determine the levy amount can be represented as follows: £840 x 3%. Overall, the amount of levy to be collected and remitted to the local authority would be £25.20. Package booking Two visitors have booked a package holiday. This package holiday is for a period of seven nights over multiple locations within the same local authority area: two nights in town A, two nights in town B, and three nights in town C. The package holiday was booked at a total cost of £3,500 (£1,750 per person). This cost includes accommodation, breakfast, transport and excursions. The local authority has set a visitor levy charge at 5%, however this charge only applies to the accommodation portion of the transaction. For the purposes of calculating the levy, costs for breakfast, transport and excursions are deducted from the total cost paid by the visitor. For the visitors stay, this can be worked out as: Page 107 of 160
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Guidance on the Visitor Levy for local authorities 34 • The cost of breakfast per day is £8 per person. This amounts to £56 per person for the duration of the stay. For the two visitors, £112 is therefore deducted from the total cost paid upfront. • The cost of transport between town A and town B is £3.50 per person, this amounts to £7.50 in total. The cost of transport between town B and town C is £12 per person, this amounts to £24 in total. The cost of transport from town C back to town A is £16 per person, this amounts to £32 in total. For the two visitors £63.50 is therefore deducted from the total cost paid upfront. • The visitors participated in excursions on four of the days during their stay. This was calculated by the accommodation provider to amount to a total cost of £120 per person. For the two visitors £240 is therefore deducted from the total cost paid upfront. • When calculating the levy to be paid for by the two visitors, the following calculation therefore applies: (£3,500 – (112+63.50+240)) x 5%. The total amount of levy chargeable to the local authority would subsequently be £154.23. VAT 7. Any amount charged by an accommodation provider for the visitor levy will be included in their turnover, which is used to determine if they need to register for VAT. It is at the discretion of the local authority to include or exclude businesses that fall below the VAT threshold from a VL scheme. 8. In the UK, VAT is charged at 20% on the price paid for the supply of taxable goods or services, including other taxes, levies and charges. In the case of the visitor levy, when an accommodation provider includes a visitor levy in the cost of the overnight accommodation, then this will form part of what is paid under a contract for the supply of accommodation. This portion of the visitor levy will be subject to the same VAT liability as the accommodation. 9. Where an accommodation provider is VAT registered, it is recognised that there may be variations in the way in which accommodation providers (or booking agents) display accommodation charges to the customer. 10. The table below sets out an example of a levy calculation and associated financial information for VAT registered and non-VAT registered businesses. Page 108 of 160
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Guidance on the Visitor Levy for local authorities 35 VAT calculation (according to current rates) In this example, an accommodation provider has an accommodation charge of £100 (excluding VAT). With a 5% visitor levy, the calculation is presented below: Table 3: VAT calculation VAT Registered Non-VAT Registered Accommodation charge* £100.00 £100.00 Levy 5% £5.00 £5.00 Total taxable supply £105.00 - VAT on accommodation charge £20 - VAT on visitor levy charge £1 - Total VAT £21.00 - Total cost to customer £126.00 £105.00 Cost breakdown Income to accommodation business £100.00 £100.00 Local authority levy remittance £5.00 £5.00 VAT payment to HMRC £20 + £1 = £21 - Total £126.00 £105.00 *this excludes the non-accommodation portion of the chargeable transaction Continuing to use the example above, at the end of the remittance period, based on 200 room nights sold at a cost of £100 per room, £1,000 will be payable by the accommodation provider to the local authority for the visitor levy. Page 109 of 160
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Guidance on the Visitor Levy for local authorities 36 This example is based on 200 room nights sold at a cost of £100 per room. Table 4: VAT calculation VAT Registered Non-VAT Registered Accommodation charge * £20,000 £20,000 Levy 5% £1,000 £1,000 Total taxable supply £21,000 - VAT on accommodation charge £4,000 - VAT on visitor levy charge £200 - Total VAT £4,200 - Cost breakdown Local authority levy remittance £1,000 £1,000 VAT payment to HMRC £4,000 + £200 = £4,200 - 11. It is recommended that when conducting communications and publicity as part of the consultation and implementation of a VL scheme, local authorities ensure that the method by which a levy is calculated is made clear to all stakeholders. The efficient operation of a VL scheme relies on a clear understanding on behalf of accommodation providers, visitors, and the local authority regarding how a levy is calculated, and the amount of levy which should be returned to the local authority. 12. There may be instances where there is disagreement on the results of a levy calculation. For example, this may occur when determining the exact amount of the chargeable transaction which can be reasonably attributable to accommodation costs. In particular, where this accommodation cost forms part of a bundle with other elements such as food, parking, or other activities. As set out in the Act, any amounts for other elements need to be “reasonably attributable”. Where a dispute between a local authority and accommodation provider occurs, local authorities should follow a dispute resolution process, in line with existing arrangements and good practice, with regards to other local taxes such as council tax. It is recommended that local authorities use the early engagement period to identify and resolve potential disputes. 13. Overnight accommodation providers can also request an internal review by a local authority, requesting that it looks again at a decision related to their visitor levy liability. For further information, see Chapter 26 Internal Reviews and Appeals. Page 110 of 160
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11 Rate Setting 1. When seeking to introduce a VL scheme, the Act requires local authorities to set the percentage rate that the levy will be charged at and publicise this as part of the outline of the proposed scheme. For further information, see Chapter 03 Required Content of a Visitor Levy Scheme and Chapter 06 Consultation. 2. It will be for the local authority to determine the percentage rate to suit local circumstances. 3. This rate may be different for different purposes or different areas within the local authority area. As outlined in the Act, a local authority could, for example, set different rates in relation to particular events. However, different rates cannot be set for different types of overnight accommodation. 4. This rate applies only to the cost of overnight accommodation and not for additional elements, which may be included in a total price, such as food or entertainment. For further information, see Chapter 10 Calculation of a Levy. 5. The Act gives local authorities discretion over the rate that can be charged, with no explicit cap. However, Scottish Ministers retain the power to set a maximum percentage rate for any visitor levy in Scotland, subject to a required consultation and agreement by the Scottish Parliament. 6. When considering what percentage rate a VL scheme should be set at, it is important that local authorities consider circumstances both within the local area, and in neighbouring authorities. It is recommended that local authorities consider key local factors, such as: a. the performance of the local visitor economy b. the demographic profile of overnight visitors c. accommodation stock 7. It is important that, when starting work on setting a percentage rate, local authorities also consider the outcomes of prior work conducted on forecasting the level of funding a visitor levy could generate. Accurate forecasting is crucial to understanding the viability of a VL scheme. It is therefore important that work conducted on setting a percentage rate takes account of the estimated revenue, which could be generated by different rates, and its relation to setup and ongoing administrative costs. For further information, see Chapter 04 Forecasting. 8. It is recommended that when setting a percentage rate, local authorities consider how the potential revenue generated by a specific rate meets the goals regarding the planned use of funds, as set out in the consultation, and how the use of funds links to the statement of objectives for a VL scheme. For further information, see Chapter 12 Use of Funds. 9. It is recommended that local authorities also consider the impact of a VL scheme on related bodies, such as National Parks. The Act requires that local authorities include the National Park authority in any consultation on a VL scheme, if the area in which a VL scheme would operate overlaps with that of the National Park. Guidance on the Visitor Levy for local authorities 38 Page 112 of 160
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10. It is recommended that, when conducting work on rate-setting, local authorities also consider the rate-setting for visitor levies in neighbouring authorities and other relevant international destinations. 11. Once a percentage rate has been set by a local authority, it is recommended that local authorities explicitly set out the rationale for the chosen rate. This could be achieved through meeting existing requirements regarding publicity or communications associated with the introduction or modification of a VL scheme. For further information, see Chapter 09 Scheme Publication and Chapter 20 Communication. 12. It is recommended that the rationale for the chosen percentage rate is linked to the outcomes sought by the local authority for the local area, and the proposed use of funds as set out in prior communications and reports produced by the local authority. 13. As set out in Chapter 24 Review of a Visitor Levy Scheme, local authorities must complete a review of their VL scheme before the end of the three-year period beginning with the date on which a scheme came into force. A review should be completed before the end of each subsequent three- year period. When planning the review of a scheme, local authorities will wish to be mindful of the requirement for consultation and implementation period (minimum of 18 months) prior to implementing a significant modification to their VL scheme. 14. Once a VL scheme is in place, the Act allows a local authority to increase or decrease the levy rate. Different rules apply if a local authority is looking to increase or decrease the percentage rate: a. Increasing the levy rate: if a local authority decides to increase the levy rate, this qualifies as a significant modification under the Act. As such, once the formal decision has been made by the local authority to increase the percentage rate, informed by the required prior consultation and a report on the consultation findings, an implementation period of at least 18 months must take place before this modification is implemented. b. Decreasing the levy rate: if a local authority decides to decrease the levy rate, this does not require an implementation period, but the required prior consultation and a report on the consultation findings must be carried out. 15. A local authority may specify a maximum number of consecutive nights a levy can be charged. This maximum can only be applied after consulting: a. representatives of communities and businesses engaged in tourism and tourist organisations b. other persons as the local authority considers appropriate Guidance on the Visitor Levy for local authorities 39 Page 113 of 160
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12 Use of Funds Aberdeen Art Gallery Page 114 of 160
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Guidance on the Visitor Levy for local authorities 41 12 Use of Funds 1. The Act requires a local authority operating a VL scheme to use the net proceeds of a scheme for certain specified purposes. Those purposes are that the funds must facilitate the achievement of a scheme’s objectives and that they should develop, support and sustain facilities and services for or used by visitors to a local authority area for leisure or business purposes. . 2. This places parameters within which funding from a visitor levy can be used, whilst also recognising the importance of local decision making by local authorities. This will mean facilities and services which are used by residents, as well as visitors, could receive funding from a visitor levy, depending on the local authority’s assessment of whether the facility or service is substantially used by visitors. 3. A local authority will also need to consult with representatives of communities, businesses engaged in tourism, and tourist organisations on the use of the funds raised by a levy. A local authority will also have to have regard to any local tourism or other relevant local, regional or national strategy which are directly linked to the visitor economy, when considering how best to use the funds raised. For further information, see Chapter 06 Consultation. 4. Local authorities are required to maintain separate accounts for the money received under the VL scheme. In doing so, local authorities may also wish to consider the use of funds over a number of years or as capital spending. For further information, see Chapter 22 Accounting. General principles 5. Net proceeds raised from a visitor levy must only be used to support the objectives of a VL scheme, or otherwise relate to developing, supporting or sustaining facilities or services which are substantially for or used by persons visiting for leisure or business purposes. The objectives of a VL scheme must themselves relate to developing, supporting or sustaining facilities or services which are substantially for or used by persons visiting for leisure or business purposes. 6. To understand how VL scheme objectives can relate to this, local authorities should have a well- developed understanding of the visitor economy in their area. In this regard, the Act requires local authorities have ‘regard to its local tourism strategy (if any)’. 7. It is important for local authorities to clearly set out how the use of the funds will develop, support and sustain the local visitor economy in line with a local tourism strategy, and other related local, regional or national strategies. 8. Aligning the use of funds with agreed tourism strategies will assist the local authority in making funding decisions that will add value to the local visitor economy, and benefit communities and residents. 9. This approach will allow local authorities flexibility to shape their spending to align with the delivery of those strategies which have already been consulted on and agreed by relevant stakeholders. Page 115 of 160
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Guidance on the Visitor Levy for local authorities 42 10. A local authority may wish to review the strategic landscape of their visitor economy to ensure they have strategies which are relevant and fit for purpose, in the context of how best to use the funds raised from a visitor levy. In doing so, the local authority may choose to review the local tourism strategy and consider whether it needs to be refreshed in anticipation of a visitor levy (at early engagement stage) or create a tourism strategy where one does not already exist. There are many other related strategies which should be considered in this context. These include, but are not limited to: a. local economic strategies b. regional economic strategies c. Scotland Outlook 2030, Scotland’s national tourism strategy d. related local, regional and national strategies, such as events (Scotland: The Perfect Stage) or culture (A Culture Strategy for Scotland) e. National Park Plans (if applicable) f. tourism focused Business Improvement District Plans (if applicable) g. infrastructure and visitor management plans, such as Strategic Tourism Infrastructure Development of plans 11. The Act also requires the local authority to consult ‘from time-to-time’ in relation to the net proceeds of the levy. Providing stakeholders with early opportunities to engage on how the funds will be spent will help foster support for a scheme. Ultimately, the timings for a consulting process on the use of funds will be for the local authority to decide, taking into consideration their own priorities and the sectors’ capacity to engage during traditional peak periods. For example, local authorities may wish to conduct consultation where changes are proposed to the use of funds following a review or significant modification to a scheme. 12. Facilities and services which are used by residents, as well as visitors, could receive funding from a visitor levy, depending on the local authority’s assessment of whether the facility or service is substantially used by visitors and whether it will lead to a positive impact on the visitor economy. For further information regarding what services or facilities a local authority could choose to allocate funds towards, local authorities may wish to see the case study examples provided via the link below. Page 116 of 160
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Guidance on the Visitor Levy for local authorities 43 13. In the process of assessing whether net proceeds to develop support and sustain a facility or service will meet the objectives of a scheme, the local authority may wish to satisfy itself that the use of net proceeds from the levy: a. is for the direct benefit of people visiting the area for the purposes of leisure/business and will safeguard or enhance the visitor experience AND/OR b. is for the indirect benefit of people visiting the area for the purposes of leisure/business and will help to safeguard or enhance the visitor experience AND c. supports the delivery of objectives in the local, regional, or national tourism strategy 14. How the net proceeds of a scheme have been used and the performance of a scheme in relation to its objectives must be included in the annual report for a scheme. For further information, see Chapter 23 Annual Reporting. 15. The Visitor Levy Forum established by the local authority will need to be engaged with regarding the use of funds given the important role the Forum plays in providing a means for ongoing engagement on a VL scheme. The Forum will discuss and advise the local authority on the use of funds from a VL scheme. For further information, see Chapter 21 Visitor Levy Forum. 16. To aid transparency around how the funds are being used, local authorities are encouraged to consider applying various means to communicate this information to the public, including visitors and businesses. In particular, local authorities may want to consider the publication of fund expenditure on its website. Case study examples 17. A bank of case study examples on various aspects of the visitor levy is being developed and updated here. Local authorities considering how best to make use of funds accrued from a visitor levy are encouraged to reflect on the examples from time-to-time. Timeline 18. Local authorities will want to consider how they wish to use the net proceeds of a visitor levy at the earliest opportunity. How the funds are used in relation to the objectives of a scheme will then be a key measure of the success of a scheme. 19. On an annual basis the timing and value of levy income received may vary from that forecasted, and in turn proposals for use of funds may need revised. Therefore, local authorities will need to ensure their mechanisms around use of funds can accommodate such circumstances. Revisions to proposals for the use of funds may also be required where there is an external shock to local authority finances such as a global or national event outwith the local authority’s control. Decisions on such revisions should adhere to the established process for use of funds in the VL scheme. Page 117 of 160
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Guidance on the Visitor Levy for local authorities 44 20. The following sets out the points at which a local authority should be considering or acting in relation to the use of funds. a. Tourism strategy: a local authority should have regard to, and align with, the objectives of relevant local tourism strategies, and other related local, regional and national strategies which are directly linked to the visitor economy. b. Early engagement: this represents an opportunity to engage with key stakeholders on how the funds might be used. c. Consultation: as part of this process the local authority will need to set out its objectives for a scheme, this should include how it intends to use the funds. Stakeholders will then have an opportunity to comment on these proposals.` d. Implementation period: this would be an ideal opportunity for the local authority to continue engagement with the public, including visitors and businesses, on how the funds will be used. e. Visitor Levy Forum: the Forum must be involved where the local authority has a duty to carry out a consultation. This includes around any proposed changes to where the use of funds from a VL scheme will be spent. f. Publication: local authorities may wish to publicise how the funds are being spent on an ongoing basis. This would aid transparency for those paying and collecting the levy. g. Annual reporting: the local authority is required to report on a scheme annually, including on how the net proceeds of a scheme have been used. h. Review of a scheme: local authorities with a scheme will be required to review that scheme every three years. As part of this process a local authority should consider how it is using the funds and any potential changes it may want to make. i. Ongoing consultation: the Act requires local authorities to consult from time-to-time on the use of the funds. Local authorities should consider how best, and how often to do this according to their own circumstances.This should take into account the ability of the tourism sector to engage during busy peak periods, as well as the need to have regard to a local tourism strategy, and other related local, regional or national strategies. As part of this requirement local authorities are obliged to consult with a National Park authority where all or part of a scheme overlaps with the area of a National Park. The local authority should also have regard to the National Park Plan for that Park. Page 118 of 160
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13 Liable Persons Jedburgh Abbey Page 119 of 160
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Guidance on the Visitor Levy for local authorities 46 13 Liable Persons 1. Under the Act, the accommodation provider is the ‘liable person’ as defined by the Act and becomes so when a visitor purchases overnight accommodation. 2. The Act requires that the liable person fulfil certain duties as part of this role. Accommodation providers will have to collect the levy from overnight visitors, remit this to the relevant local authority (which can be done via a third party such as a booking platform) and are responsible for making sure that suitable records and returns are made and kept. When considering retention periods in relation to a VL scheme, it is recommended that local authorities build on best practice and existing regulation in relation to local taxation. The liable person is also responsible for the payment of penalties, if applicable. For further information, see Chapter 25 Compliance. Third parties 3. Under the Act, accommodation providers can enter into arrangements with third parties, such as online booking platforms, tour operators, or destination management companies (DMCs) to collect, remit and pay the visitor levy to the relevant local authority. It will be for the accommodation provider and the relevant third party to come to an agreement, however, third party arrangements for remittance will require local authority consent. There is no obligation on the local authority to offer advice, but it may choose to do so. The accommodation provider remains the liable person in ensuring the completion of these duties. Common scenarios for liable persons 4. It is recommended that local authorities consider a range of common scenarios faced by businesses associated with the purchase of overnight accommodation, which have the potential to cause confusion regarding the status of the liable person. It is anticipated that questions related to these scenarios may be raised by stakeholders following the implementation of a levy and the local authority may wish to provide guidance or support in these (and other areas). For further information, see Chapter 14 Assistance for Liable Persons. Potential examples are provided below: a. Refusal to pay: there may be cases where a visitor who attempts to purchase overnight accommodation refuses to pay the visitor levy. This may occur where a visitor attempts to purchase overnight accommodation at the point of entry to the accommodation premises and not in advance of travel. In this scenario, the accommodation provider would remain the liable person, and could choose to cancel the booking or absorb the cost of the visitor levy. b. Cancellations: accommodation providers often experience cancellations. Where a cancellation happens on a booking that is pre-paid in advance, the business should refund the levy to the visitor and not remit it back to the local authority. For a visitor levy to be remitted to a local authority, a visitor is required to have entered the overnight accommodation and purchased the right to reside in the overnight accommodation for a period specified in Section 3 of the Act, which is paid for. If no payment of a levy from the visitor to the accommodation provider has taken place before the cancellation, no refund is required. In both cases, there would be no liable person as the visitor levy would not apply. Page 120 of 160
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Guidance on the Visitor Levy for local authorities 47 c. Refunds: accommodation providers may be required to provide refunds to overnight visitors. If a visitor has entered overnight accommodation for the period defined as a night in Section 3 of the Act but is provided with a refund by the accommodation provider, the visitor levy charge would still apply, and the accommodation provider would remain the liable person. Refunds issued to the customers who have already stayed in the accommodation would not automatically include the levy already paid by the visitor, and the liable person would still be required to pay the levy – unless otherwise specified by the local authority. d. Transitional provision: the visitor levy must not be charged where accommodation has been contracted prior to the date on which a local authority formally announces its intention to introduce a VL scheme. However, if a visitor or tour operator books overnight accommodation after a formal local authority decision to introduce a visitor levy has been agreed, and the date of the overnight stay is after the date on which a VL scheme is to come into force, the visitor levy would apply, and the accommodation provider would remain the liable person. It will be for the local authority and businesses to consider arrangements for collecting a levy from bookings made after the VL scheme comes into effect but before accommodation providers have put a system in place. In considering these arrangements, local authorities should be aware of the long lead in times that some businesses have in contracting accommodation bookings. Some examples include, but are not limited to: i. tour operators ii. destination Management Organisations iii. conferences and other business events iv. sporting and cultural events When engaging with these businesses, local authorities should be aware that representative bodies of such organisations may not be based in the local authority area. Data protection 5. A high proportion of accommodation businesses in Scotland are small and operated by sole traders (a “natural person”) as opposed to an established legal entity such as a Limited Company (a “legal person”). As such, certain items of information which might usually be processed by a local authority in the normal course of operations which would be treated as “business data” could actually be considered as “personal data” in the context of Article 4 (1) of the GDPR. 6. In these cases, data about the business run by a sole trader can directly or indirectly identify that individual. Which means that Articles of the UK GDPR are relevant to the processing activity involved and each individual will have rights, which must be upheld when processing such data. There will also be additional obligations for each local authority in terms of Article 5 (data protection principles), Articles 12-22 (data protection rights), Article 25 (data protection by design and default), Article 28 (processor), Article 79 (right to an effective judicial remedy), Article 80 (representation of data subjects) and Article 82 (right to compensation and liability) - this list is for illustrative purposes and is not intended as an exclusive or definitive list. Page 121 of 160
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14 Assistance for Liable Persons Mull of Galloway Lighthouse Page 122 of 160
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Guidance on the Visitor Levy for local authorities 49 14 Assistance for Liable Persons 1. There is no statutory requirement for a local authority to provide any specific form of assistance to liable persons. This chapter suggests several areas where local authorities may choose to assist liable persons. However, the form this assistance takes will be based on local needs and circumstances, and the ultimate decision on whether to provide assistance to liable persons, will be decided by the local authority. 2. Where local authorities do choose to provide assistance to liable persons within a VL scheme, this may result in a range of benefits. This may include higher levels of compliance, a reduction in potential disputes, and a more efficient VL scheme overall. 3. Assistance to liable persons could take place across the following key areas of a VL scheme: a. Remittance: in order for a VL scheme to operate successfully, accommodation providers should have a clear understanding of how they are able to make returns to the local authority. This includes the required content of the returns, the agreed reporting period, and the manner by which a return is made. For further information, see Chapter 16 Remittance. b. Exemptions: prior to the introduction of a VL scheme, it is crucial that accommodation providers have a clear understanding of how exemptions will operate. This includes knowledge of who is exempt, the evidence required by the overnight visitor, and how the local authority has chosen to administer exemptions. For instance, if the local authority chooses to administer exemptions via a process of reimbursement, accommodation providers should be provided with information as to how overnight visitors can apply for reimbursement from the local authority. c. Enforcement and compliance: it is important that accommodation providers have knowledge of the powers available to local authorities where they fail to comply with the requirements of a VL scheme. This includes an understanding of specific timescales, any penalty charges set by the local authority, and what may constitute a reasonable excuse for non-compliance. For further information, see Chapter 25 Compliance. d. Billing: accommodation providers could also be provided with key information relating to how overnight visitors should be invoiced. For further information, see Chapter 15 Billing. e. Business costs: local authorities should be mindful to the costs incurred by liable persons as they make changes to comply with a VL scheme. Local authorities should have an existing awareness of these costs as part of engagement with liable persons conducted at the early engagement, statutory consultation and implementation period stages. See Chapters 05 Early Engagement, 06 Consultation and 07 Implementation Period for further information. There are various means through which a local authority may wish to assist liable persons in addressing costs associated with set up and operation in accordance with a VL scheme. It is recommended that in making a decision about business costs, local authorities should assess the impact this assistance could have on both liable persons and the local authority. 4. This chapter will be updated further to reflect the experience of local authorities and liable persons following the introduction of VL schemes. Page 123 of 160
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15 Billing of Overnight Accommodation Princes Street, Edinburgh Page 124 of 160
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Guidance on the Visitor Levy for local authorities 51 15 Billing of Overnight Accommodation 1. At an early stage, in preparation for the introduction of the levy, it is strongly recommended that local authorities work closely with accommodation providers to establish what, if any, booking and invoicing systems are currently used by businesses, and how invoicing is handled. 2. It is important to remember that accommodation businesses use a variety of systems to manage bookings and produce invoices. Point of sales systems and property management systems will need to be modified to calculate and display the tax. These systems are provided by third parties and modification will incur charges for the business, as system reports will need to be enhanced to calculate and evidence the charge. 3. Therefore, there will need to be clarity early on as to how the invoicing process will need to work together with reporting required by local authorities. 4. Smaller accommodation providers might not use a digital service. In such cases, local authorities may need to consider how to support those businesses towards adopting an updated process. Alternatively, local authorities will need to ensure that paper-based invoicing and reporting can be accepted on request. For further information, see Chapter 16 Remittance. 5. When agreeing the invoicing format, consideration must be given to the interplay with the Digital Markets, Competition and Consumers Act 2024, which will provide protection to consumers on the display of pricing and The Price Marking Order 2004. 6. Local authorities will need to advise accommodation providers when they should begin charging and collecting the levy. 7. Local authorities have the ability to audit accommodation providers where they consider necessary. This may include requesting additional information to support a liable person’s return to the local authority. 8. Scottish Ministers have the power to set out in regulations requirements for the billing of overnight accommodation with respect to the chargeable transaction. At the time of publication no regulations on billing have been made. Page 125 of 160
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16 Remittance Belladrum Tartan Heart Festival Page 126 of 160
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Guidance on the Visitor Levy for local authorities 53 16 Remittance 1. As part of the operation of a VL scheme, the Act requires liable persons to make returns to the relevant local authority. These returns allow a local authority to monitor and administer a VL scheme. For further information, see Chapter 13 Liable Persons. 2. Returns are expected to be made to local authorities on a regular basis, with the exact form and content of these returns up to the discretion of the local authority. However, under the Act, these returns must: a. include an assessment of the amount of the levy payable in respect of the relevant period and each premises where the liable person is the accommodation provider b. be made before the end of the period of 30 days beginning with the end of each relevant period (either each quarter or a period specified by the local authority in a VL scheme) 3. Local authorities can also set out to businesses, expectations around remittance/return and payment of the levy, noting that this can only be done for overnight stays that have been occupied in the reporting period. 4. When developing a VL scheme and considering how returns are made, on what basis returns are made, and the content of these returns, local authorities are encouraged to actively consider the varying capacities of businesses in the local area. It is important that the administrative burden for smaller businesses is reduced to a minimum. 5. For VAT registered businesses, see Chapter 10 Calculation of a Levy for further information. 6. Whilst the requirements in the Act itself are minimal and set out above, a VL scheme offers the opportunity for a local authority to collect relevant data related to the visitor economy. This would allow richer data to help make data-informed decisions in relation to: a. A VL scheme: data is crucial for local authorities to receive a level of information adequate to ensure the efficient operation of a VL scheme, including: i. to have data to help inform and evaluate a VL scheme and its success, which in turn may help to ensure evidence-based decisions are made, i.e. for future modifications to a scheme ii. to influence the most effective and impactful use of spend from the levy iii. to support the validation of the suggested calculation of the levy iv. to enable effective enforcement and compliance information b. The visitor economy: at a local, regional and national visitor economy, having rich, accurate and (close to) real-time data will allow data-informed decisions to be made, which in turn will help achieve the national priorities from our national tourism strategy (Scotland Outlook 2030) to become ‘the world leader in 21st century tourism’. Page 127 of 160
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Guidance on the Visitor Levy for local authorities 54 Table 5 outlines what information may be considered to be required to validate returns. Table 5: Suggested Information Type of Information Information Required to Validate Return Basic information Name, address and contact details of accommodation provider. Accommodation type See Chapter 01 Power to Introduce a Levy for further details on accommodation type within scope. Occupancy data Capacity of accommodation (e.g. number of rooms, number of beds). Number of rooms or beds in the accommodation premises that are available. Number of occupied overnight stays (e.g. number of nights where a room or bed is occupied by a visitor). Number of occupied overnight stays that are out of scope from VL charge, e.g. homelessness etc. Number of overnight stays that are greater than X nights in duration, if a cap on the duration of nights is locally or nationally determined. Number of overnight stays that are attended by exempted persons if an individual exemption is decided nationally or locally, e.g. qualifying persons, etc. unless another rebate or reimbursement process is locally arranged. Revenue which the levy calculation is based The levy payment is based on the total revenue generated from chargeable accommodation transaction which includes the commission paid to an online travel agent or similar. For further information, see Chapter 10 Calculating a Levy. Page 128 of 160
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Guidance on the Visitor Levy for local authorities 55 Type of Information Information Required to Validate Return Revenue on which the levy calculation is based Deductions that may need to be subtracted from the total revenue include: Local authorities have the discretion to decide whether to collect data from exemptions (i.e. those exempt under the UK and/or Scottish disability benefit exemption), and should consider the views from others on the best way for it to work so it is as frictionless as possible. Ensuring also that once the scheme is running, there is the opportunity to monitor and review its performance. Total revenue that is out of scope from the charge, e.g. from persons that are homeless or at risk of homeless etc. For further information, see Chapter 17 Exemptions. Total revenue that is part of maximum cap reduction (e.g. a 7-night maximum cap), if applicable. Total revenue that is part of any exemptions (decided nationally or locally, e.g. persons in receipt of disability benefits) unless another rebate or reimbursement process is arranged by the local authority. Reporting frequency State the length of period (up to the local authority to decide, e.g. monthly). Start date of reporting period (e.g. first day of the month). End date of reporting period (e.g. last day on the month). Payment details Method of payment (as specified by the local authority). Auditable records Record of bookings, cancellations and modifications for audit purposes. Page 129 of 160
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Guidance on the Visitor Levy for local authorities 56 7. Based on the above opportunities outlined in Paragraph 4, local authorities may wish to consider requesting additional optional information beyond that outlined above. Additional information should be considered against overall net benefit and burden on responding businesses. This information should be considered important to meeting the objectives of a VL scheme, and to bringing benefit to the wider visitor economy. 8. It is recommended that local authorities looking to ask for additional information undertake to engage businesses early to establish capacity to provide such additional information, and to establish the overall net benefit of doing so. 9. Where there is a nil return for each period, it is recommended that local authorities encourage liable persons to submit returns. This will ensure the existence of an audit trail necessary for the efficient operation of a VL scheme, and will remove the need for local authorities to submit repeated requests for information from liable persons. 10. Data governance, accuracy and consistency – by acknowledging the secondary benefit of better data collection from undertaking a visitor levy, local authorities should consider exploring the opportunity of reporting research data by working with local and national stakeholders, to ensure appropriate governance, accuracy and consistency. The potential benefit of this could extend to future planning and monitoring that supports the local visitor economy. Page 130 of 160
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17 Exemptions The Riverside Museum, Glasgow Page 131 of 160
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Guidance on the Visitor Levy for local authorities 58 17 Exemptions 1. A number of groups do not fall within the scope of the Act and are therefore not liable to pay a visitor levy charge. These groups, with the exception of those in receipt of specified disability payments, are not considered visitors to an area for business or leisure purposes, and are therefore not liable to pay a levy charge. These groups are: a. Those who are using overnight accommodation as their only or primary residence, which could be due to: i. being homeless or at risk of homelessness ii. very poor housing conditions (such as overcrowding, serious damp or disrepair) iii. experiencing domestic abuse or other forms of violence iv. someone’s residence being unfit for habitation v. someone being an asylum seeker or refugee 2. In addition, the visitor levy does not apply to: a. someone staying on a dedicated gypsy/traveller site run by a local authority or a registered social landlord b. those in receipt of the following specified disability benefits, payments, or allowances: i. Disability Living Allowance ii. Disability Assistance iii. Attendance Allowance iv. Pension Age Disability Benefit v. Personal Independence Payment For those who act as carers for overnight visitors in receipt of one of these payments, local authorities should be aware that the Act does not provide a national exemption. Any decision to exempt carers would be up to individual local authorities. 3. Other people not subject to the visitor levy include those who are residing overnight in vehicles or on-board vessels that are undertaking a journey involving one or more overnight stops. As a result, the following forms of overnight accommodation are outwith the scope of the Act: a. the provision of a cabin on a ferry or cruise ship, unless the vessel is permanently moored b. the provision of a cabin on an overnight sleeper train c. use of a hired or privately-owned campervan or motorhome where they are not staying overnight in campsites 4. In addition to those mentioned in paragraphs 1-3 above, local authorities also have the power to put in place local exemptions. As set out in the Act, a local authority must set out the cases or circumstances where the levy is not payable or may be reimbursed. This section also requires local authorities to outline the process through which this exemption is administered or reimbursement takes place. For further information, see Chapter 03 Required Content of a Scheme. Page 132 of 160
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Guidance on the Visitor Levy for local authorities 59 5. There are a number of factors that local authorities may wish to bear in mind when considering local exemptions. The following list is not intended to be exhaustive, instead providing an overview of some of these factors: a. Purpose and rationale: local authority decisions on who is, and is not, exempt from paying a visitor levy should correspond with the objectives of a VL scheme. Local authorities may wish to consider explicitly stating how an exemption relates to these objectives in the outline of a VL scheme. b. Scope and eligibility: it is important to consider how local exemptions are targeted at the intended groups. In particular, it is important that stakeholders have a clear understanding of who is, and is not, covered by an exemption, and how this exemption is evidenced by the overnight visitor. c. Impact and effectiveness: local exemptions will have an impact on the effectiveness of a local VL scheme. Prior to the introduction of an exemption, local authorities may wish to conduct work on the potential impact on available funds, including through increased administrative costs, and reduced income, which may have otherwise been used to provide additional support to the persons or activity being considered as an exemption. d. Communication and messaging: ensuring that all stakeholders have a detailed understanding of who is, and is not, responsible for the payment of the visitor levy is crucial to the efficient and effective operation of a VL scheme. Local authorities may wish to consider how this information, and the associated arrangements, is communicated to stakeholders. 6. It is recommended that the cases or circumstances where the Levy is not payable by an overnight visitor are set out as part of the outline of the proposed VL scheme prior to the consultation. As such, it is recommended that local authorities begin the process of considering whether to develop a system of local exemptions at an early stage in the development of a VL scheme. This could form a key element of early engagement with local stakeholders, such as residents and accommodation providers. For further information, see Chapter 02 Timeline. 7. How a system of local and/or national exemptions will be administered and monitored will be a key consideration for local authorities. Under the Act, a local authority could have a situation where a visitor is not liable to pay the visitor levy, and so does not pay it upfront or the local authority could develop a process whereby an overnight visitor claims back the visitor levy charge through reimbursement. In this scenario, overnight visitors would still be required to pay the levy charge at the point of entry or booking, with local authorities responsible for administering the reimbursement at a later date. Page 133 of 160
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Guidance on the Visitor Levy for local authorities 60 8. There are a number of factors that local authorities may wish to consider when developing the administrative arrangements for national and local exemptions. The following list is not intended to be exhaustive, instead providing an overview of some of these factors: a. Administrative burden on accommodation providers: local authorities should recognise the potential administrative burden on accommodation providers resulting from local exemptions. This could include the handling of personal and sensitive data which accommodation providers are not accustomed to processing and increased costs associated with training for employees. b. Local authority administrative costs: local authorities may wish to consider the potential for increased administrative costs associated with the development of local exemptions. This may be particularly relevant where a local authority chooses to reimburse exempt overnight visitors. Higher administrative costs may reduce funds available to the local authority, with implications for the local community and visitor economy. For further information, see Chapter 12 Use of Funds. c. Digital solution: local authorities may wish to consider the availability of appropriate digital solutions in operating any refund or reimbursement payments for persons who are submitting a claim because of an exemption from the levy. d. Enforcement, compliance and notification: it is important that any decisions taken regarding the development of local exemptions consider how these exemptions will be monitored, processed and enforced. This could include what evidence the local authority will deem satisfactory for proof of an exemption, whether this evidence can or should be stored (and the related data protection issues associated with this), and how this evidence will be submitted by the overnight visitor (for further information, see Chapter 25 Compliance), and how overnight visitors are notified that their exemption request has been successful (in cases where a local authority choose to reimburse those who are exempt). e. Evaluation: the local authority may wish to consider how the success of an exemption is monitored throughout the lifetime of a VL scheme. Information on the performance of an exemption may form a key part of the three-year review, and will therefore be crucial to discussion relating to the modification of local exemptions. For further information, see Chapter 24 Reviews. Page 134 of 160
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Guidance on the Visitor Levy for local authorities 61 9. Under the Act, a local authority may modify their VL scheme to add or remove an exemption, after a VL scheme has come into force. a. Adding an exemption: if a local authority decides to add an exemption to a VL scheme, this does not require an implementation period, but a consultation and a report on the consultation findings is required before a decision can be taken to add the exemption to an existing VL scheme. b. Removing an exemption: if a local authority decides to remove an exemption from a VL scheme, the Act states that this qualifies as a significant modification. In such circumstances the local authority must consult on proposals to remove the exemption and produce a report on the consultation findings. Once the formal decision has been made by the local authority to remove the exemption, an implementation period of at least 18 months should elapse before the exemption is removed. 10. If an overnight visitor disputes the classification of an eligibility or an exemption, the local authority may wish to follow existing practice and procedure in resolving this dispute. The form this process takes will be closely related to the administrative arrangements for exemptions decided by the local authority, as noted above. However, it is important that any dispute resolution process recognises the need to safeguard accommodation providers from potential conflict with overnight visitors, the potential administrative burden on accommodation providers on handling large volumes of complex and sensitive documentation and upholds the overall reputation of a VL scheme. 11. Some of the conditions which are used to define exemptions from the levy charge are considered Special Category data. When this is the case, each collector will need to ensure that their processing activities, for the administration of exemptions and associated refunds, have an appropriate UK GDPR Article 6 (lawful reason for processing), accompanied by an appropriate exemption under UK GDPR Art 9 (Processing of special categories of personal data). 12. There is a risk that the processing of personal data in the context of exemptions to the levy charge may have unintended consequences, causing harm to the individual. Harms may be defined as “Financial Harm” or as “Discrimination”, if processing results in a comparative financial loss or disadvantage. (see ICO document, Overview of Data Protection Harms and the ICO’s Taxonomy, April 2022). The controller will need to ensure processing is appropriate in the context of UKGDPR Articles 5/1/a (fairness) and 22 (automated individual decision making). Page 135 of 160
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Guidance on the Visitor Levy for local authorities 63 18 Islands 1. The Act makes no specific reference to island communities. However, local authorities considering the implementation or modification of a VL scheme should actively consider potential differential impacts on island communities. Island communities face unique challenges such as declining populations, geographic remoteness, and connectivity difficulties. Where relevant, local authorities will also need to take account of their duties under the Islands (Scotland) Act 2018. 3. As part of the work to consider island communities it is recommended that local authorities consider the following issues when implementing or modifying a VL scheme to mitigate any further potential different impacts: a. Administration: the makeup of the accommodation provider industry across many island communities differs significantly from that found in other parts of Scotland. For example, island communities often contain a higher proportion of small providers and self-catering properties. When local authorities are designing regulations on the administration of a visitor levy in a community which contains islands, it is recommended that local authorities consider the challenges faced by small accommodation providers. b. Enforcement: the tendency for island communities to contain a higher proportion of small accommodation providers may require further consideration by local authorities in terms of enforcement procedures. It is recommended that local authorities with island communities consider the potentially higher cost of enforcement procedures, as a result of smaller returns through penalties, compared to enforcement conducted against large accommodation providers such as hotels or hotel chains. c. Forecasting: due to the potential for higher administrative costs and smaller returns through penalties as noted above, it is recommended that local authorities with island communities actively consider the impact on forecasting conducted prior to implementation or modification of a VL scheme. d. Reporting: the Act requires local authorities to prepare a report on the amount of revenue collected, the use of net proceeds, and the performance of a scheme in relation to its objectives. It is recommended that, when preparing a report, and where both practical, and the relevant data is available, local authorities consider the inclusion of information relating to the impact of a VL scheme on island communities. Page 137 of 160
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Guidance on the Visitor Levy for local authorities 65 19 Local Flexibilities 1. Local authorities wishing to introduce a VL scheme in their area have a number of flexibilities they can use within their VL scheme. 2. These flexibilities provide local authorities with discretion to implement a VL scheme which meets local circumstances. How these local flexibilities will be used should be a matter for the local authority to decide following the comprehensive consultation process. See Chapter 06 Consultation. 3. The local flexibilities include: a. The ability for a local authority to set different rates for different purposes or areas. This includes the ability to create a cap in the form of a monetary value or a maximum number of nights on which the levy applies. See Chapter 11 Rate Setting. b. The ability to have a VL scheme in all, or specified parts of a local authority area. Two or more local authorities may act jointly to make a VL scheme. c. The ability for a local authority to apply local exemptions. See Chapter 17 Exemptions. d. The ability to set specific times of the year where a purchase of overnight accommodation will give rise to the levy. Local authorities must set out intentions for including or excluding businesses which fall below the VAT threshold. See Chapter 01 Power to Introduce a Levy and Chapter 03 Required Content of a Scheme. e. The ability to set the frequency with which accommodation providers are required to make returns to the local authority. See Chapter 16 Remittance. f. The ability to specify records which must be kept and preserved. See Chapter 16 Remittance. g. The ability to take an approach to compliance and enforcement that works for the local authority. There are no requirements for a local authority to impose penalties or take enforcement action under the Act. See Chapter 25 Compliance. Page 139 of 160
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Guidance on the Visitor Levy for local authorities 67 20 Communication 1. For a VL scheme to be successfully implemented, appropriate and effective communication with a variety of interested parties at various stages will be crucial. 2. This Chapter of the guidance sets out when in the process communication will be particularly crucial and offers examples of how this may be carried out. Principles of communication 3. There are a number of general principles to guide good communication when it concerns the preparation and establishment of a VL scheme. Those principles are that communication is: a. Accessible: make sure publication of proposed activity(ies) and information is accessible to all relevant stakeholders. This should include (but not be limited to) publication on relevant website and social media channels or through a notification in a public place. Local authorities should consider how communication will be delivered to those people who have communication support needs, such as the provision of alternative formats. In the interests of communicating with visitors, different language formats may need to be considered, so that messages are accessible and easily understood. b. Engaging: consider how opportunities for feedback on communication can be maximised. Setting out how all relevant stakeholders can get involved with the process will be important. Crucial to this is engagement with the businesses and organisations working most closely within the local visitor economy. c. Transparent: demonstrating how feedback has influenced thinking and/or been incorporated into decisions will be crucial to ensuring trust in the final decision making and implementation of the levy. Where views are being sought around the implementation of a VL scheme, the body seeking those views should consider how it can best reflect the actions it has taken on the basis of feedback provided. d. Ongoing: open and engaging communication with stakeholders should continue in the long-term. Where a levy is being implemented it will be important to communicate where and how businesses can get support to implement changes to their operation. 4. All stakeholders concerned with the operation and implementation of a VL scheme have an obligation to ensure that they communicate in a manner that allows stakeholders to respond appropriately. When to communicate 5. In some instances, the Act places duties on local authorities to communicate aspects relating to the implementation of a VL scheme. There are other instances where no statutory requirement exists, but where appropriate communication would be helpful to all involved and doing so would demonstrate best practice. 6. The following ‘model timeline’ (Table 6) sets out the parts of the process where communication will be required and how the general principles outlined above may be applied to each case. Page 141 of 160
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Guidance on the Visitor Levy for local authorities 68 Table 6: Communication Timeline Early engagement (non-statutory): Early engagement will establish a strong foundation for collaborative development of a VL scheme. For further information, see Chapter 05 Early Engagement. Consultation (statutory): The local authority is required to conduct a public consultation on its proposal for a VL scheme. Standard practice would be for a consultation that lasts 12 weeks. For further information, see Chapter 06 Consultation. Implementation period (statutory): VL scheme will come into force at least 18 months after the date on which the local authority publishes a report summarising the consultation responses received, stating that it intends to proceed with the original proposal or a significant modification to a proposal. This period is an ideal opportunity to work with accommodation providers, communicating with them around their duty to collect and remit the levy. Local authorities should make it clear to stakeholders when the implementation period begins and when it will finish, and the levy be introduced. For further information, see Chapter 07 Implementation Period and Chapter 14 Assistance to Liable Persons. Publicity for introduction of scheme (statutory): Local authorities wishing to introduce a VL scheme must notify Scottish Ministers of its decision, publicise its decision and publicise the proposed date on which the visitor levy will come into force. For further information, see Chapter 09 Scheme Publication. Visitor Levy Forum (statutory): The Visitor Levy Forum must be established within six months of the local authority formally announcing that it will implement a VL scheme. Thereafter, the Forum will be involved where the local authority has a duty to carry out a consultation. For further information, see Chapter 21 Visitor Levy Forum. Ongoing communication (non-statutory): Visitors will need to understand how much the percentage rate(s) will be, and how, and when they will be collected. Stakeholders will welcome ongoing information on the use of funds. Local authorities may develop an ongoing communications plan to highlight to visitors, businesses and communities, what the levy is and the difference it is making. Compliance (statutory): Communications around compliance will be crucial. It is recommended that local authorities produce materials and advice for accommodation providers to assist them with the technical aspects of compliance. For further information, see Chapter 25 Compliance and Chapter 14 Assistance for Liable Persons. Annual reporting on scheme (statutory): the annual report should detail the amount of money collected, and how the net proceeds have been used. The report should be published as soon as possible at the end of the reporting period, and in a manner that the authority considers appropriate. For further information, see Chapter 23 Annual Reporting. Review of scheme (statutory): a local authority operating a VL scheme is required by the Act to review it every three years. It should also publish the findings of its review as soon as possible. For further information, see Chapter 24 Review of a Scheme. Use of funds (statutory): Local authorities that operate a scheme are required to consult on the use of funds. Where a local authority consults on the use of funds it should involve the Visitor Levy Forum. For further information, see Chapter 12 Use of Funds and Chapter 21 Visitor Levy Forum. Page 142 of 160
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Scalpsie Bay, Argyll and the Isles 21 Visitor Levy Forum Page 143 of 160
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Guidance on the Visitor Levy for local authorities 70 21 Visitor Levy Forum 1. As set out in the Act, a local authority that introduces a VL scheme is required to establish a Visitor Levy Forum. The Forum must be established by the local authority no later than six months after the date of the decision to introduce a VL scheme. The local authority must maintain the Forum for the duration of a scheme and ensure that it has both the ability to carry out its functions and meet on a regular basis (defined as not less than two times per calendar year). 2. Where a local authority is operating multiple VL schemes within the local authority area, the Act provides the power to establish multiple Forums corresponding to each individual scheme. Alternatively, the local authority also has the power to establish a single Forum covering multiple VL schemes. 3. The function of a Forum is advisory. Its purpose is to provide advice to the local authority in a number of areas relating to the operation of a VL scheme. It will be for the local authority to establish its own decision-making process in relation to areas the Forum has provided advice on. 4. Once a VL scheme is established, the Forum must be involved where the local authority has a duty to carry out a consultation. For instance, where it is proposed to modify a VL scheme, or change the planned use of funds from a VL scheme. A local authority must also provide the Forum with copies of each annual report and the review of the VL scheme carried out every three years. 5. It is intended that a Forum ensures that businesses, communities and organisations related to the visitor economy have a robust mechanism to conduct effective ongoing engagement with the local authority once a VL scheme has been introduced. 6. The membership of the Forum is to be determined by the local authority operating a VL scheme. Under the Act, membership must contain a reasonable balance of representatives from communities, businesses engaged in tourism, and tourist organisations. It is recommended that local authorities give consideration to appointing representatives from all aspects of the visitor economy, according to local circumstances. 7. When considering the makeup of the Forum, local authorities may wish to give thought to how the Forum best reflects the strengths and assets of the visitor experience in the local authority area. In particular, those organisations or bodies who have a key role in the development of the local visitor economy. This could include, but may not be limited to: a. major cultural events and festivals taking place in the area b. organisations with a role to play in heritage and sustainability c. accommodation providers directly involved in collecting and remitting the levy in the local area 8. Forum membership may also include elected members. However, elected members must not make up a majority of the Forum. Though local authorities may wish to appoint elected members to the Forum to provide more effective links to the ongoing work being conducted within a VL scheme, and the decision-making processes of the local authority, elected member representation on the Forum is optional, and there is no duty for local authorities to appoint elected members to the Forum. Page 144 of 160
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Guidance on the Visitor Levy for local authorities 72 22 Accounting 1. The Act requires that local authorities: a. keep a separate account for a VL scheme b. credit the account with the net amount of money received under a VL scheme (including penalties) minus refunds issued c. debit the account with the expenses of operating a scheme d. observe any other accounting guidance that may relate to the levy e.g. Local Authority Scotland Accounts Advisory Committee (LASAAC) accounting guidance or similar 2. There is no requirement, as set out in the Act, for local authorities to outline the total use of funds through accounting requirements. However, as best practice, alongside the four requirements as set out above, local authorities may wish to include a single line stating “the use of proceeds of a scheme” when accounting for a VL scheme. This would sit alongside more detailed reporting in Chapter 12 Use of Funds and Chapter 23 Annual Reporting. 3. The Act also provides Scottish Ministers with the power to introduce further regulations specifying the form of the account, publication of the account, and processes, where local authorities implement a joint VL scheme. 4. At the time of publication, the Scottish Government has indicated there are no plans to produce regulations in this area. However, guidance is being produced by LASAAC. 5. When considering accounting practices in relation to a VL scheme, it is recommended that local authorities build on best practice and existing regulation in relation to other local funds, as well as in audit and governance arrangements. 6. Local authorities may also wish to consider the accounting implications regarding the use of funds over a number of financial years. The Act does not stipulate that revenue generated by a levy should be used within a certain time period. Local authorities may choose to carry funds forward between years or place funds in reserve. This may be particularly relevant in the early years of a VL scheme, where estimation of expected levels of net levy proceeds may be more difficult to predict. Page 146 of 160
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An Ceann Mòr, Inveruglas 23 Annual Reporting Page 147 of 160
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Guidance on the Visitor Levy for local authorities 74 23 Annual Reporting 1. Within the first 18 months from when a VL scheme comes into force, and for each 12-month period following this, local authorities must prepare a report setting out: a. the amount of money collected b. how the net proceeds have been used c. the performance of a scheme in relation to its objectives 2. This report must be produced as soon as is reasonably practicable after the end of the reporting period, and in a manner which the local authority considers appropriate. When producing the report, it is recommended that local authorities recognise that transparency will be key for local stakeholders with an interest in the operation of a visitor levy. Accessibility should therefore be a key consideration for local authorities when publishing the annual report. 3. This report may be linked to other forms of regular financial reporting conducted by local authorities throughout the year, and as such local authorities may also wish to include information over and above that defined by the Act. However, the need to avoid overly onerous reporting requirements should be recognised. 4. It is important to note that the annual report performs a different function to the review, conducted over a period of up to three years. These reviews may offer extended, in-depth information on the operation of a VL scheme over a longer period of time. For further information, see Chapter 24 Review of a Scheme. Page 148 of 160
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Guidance on the Visitor Levy for local authorities 76 24 Review of a Scheme 1. Under the Act, a local authority is required to review a VL scheme after a set period. The first review must be carried out within three years of a VL scheme coming into force. Second and subsequent reviews must be carried out within three years of the previous review. The results of the review must be published, and a copy sent to the relevant Visitor Levy Forum. 2. It is for each local authority to decide how they wish to carry out the review. However, it is recommended that there is a clear formal decision to start the review, with a clear process around how the conclusions of the review will be considered, and how any actions resulting from the review will be decided and implemented. Therefore it is recommended that a local authority sets out a timeline for the review, with dates for when the review will start and conclude, and any key milestones during the review’s progress. 3. The administrative costs of a VL scheme, such as the costs for the review of the VL scheme, can be taken from the funds raised by a scheme, and will be a matter for the relevant local authority. 4. While the exact scope of the review will be for a local authority to determine there are some topics that it would be considered good practice to cover. These include: a. how a VL scheme has performed in relation to its objectives b. the outcomes to which a VL scheme has contributed, including links to relevant tourism strategies c. the impact of a VL scheme on businesses, both those directly and indirectly affected by a VL scheme d. the impact of a VL scheme on local communities e. how funding raised by a VL scheme has been used, and an assessment of what benefits that has brought about f. how a VL scheme has been administered, and any lessons that can be learnt to improve administration for the local authority and businesses 5. It is considered good practice for the review to fully involve those affected by a VL scheme. This would include visitors, accommodation providers, tourism organisations, community groups, and others, and it is recommended that a local authority considers how best to involve relevant stakeholders in the review. The Visitor Levy Forum established by the local authority will need to be fully involved in the review, given the important role the Forum plays in providing a means for ongoing engagement on a VL scheme. Page 150 of 160
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25 Compliance Ballater Highland Games, Aberdeenshire Page 151 of 160
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Guidance on the Visitor Levy for local authorities 78 25 Compliance 1. The Act gives local authorities a range of powers to enforce compliance with a VL scheme or delegate powers of enforcement and compliance to a third party. These powers are in line with those already available to local authorities in ensuring compliance with other local taxes, such as council tax and non-domestic rates. 2. It is recommended that local authorities build on existing best practice when considering the enforcement of penalties. The use of penalties should be a last resort, and only used after other compliance actions have failed. Where a local authority has an effective register of liable persons and record keeping process, this shall help to reduce the potential for enforcement to be necessary. 3. As outlined in the Act, these powers give local authorities the ability to: a. obtain information and documents from liable persons and third parties b. enforce compliance with information notices c. powers to enter and inspect the premises of liable persons or third parties d. powers to copy and remove documents e. powers to obtain access to, inspect and check the operation of any electronic device, associated apparatus, or material f. powers to inspect business premises, and business premises of third parties g. disclose and share relevant information to: i. relevant local authority authorised officers ii. other local authorities iii. a person authorised to carry out collection and enforcement functions h. impose penalties: i. failure to make valid and complete returns ii. failure to keep and preserve records iii. failure to comply or obstruction iv. providing inaccurate information v. concealing or destroying relevant documents 4. When sharing data as part of the exercising of a local authority’s enforcement duties, it is recommended that local authorities build upon existing best practice, ensuring compliance with existing legislation such as UK GDPR regulations and the Data Protection Act 2018. Page 152 of 160
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Guidance on the Visitor Levy for local authorities 79 5. Where liable persons report difficulties in meeting the reporting requirements set out by the local authority, the liable person is expected to make all reasonable effort to rectify the situation within three months of the original deadline or alternative period, as determined by the local authority. 6. As set out in the Act, where a liable person has either, failed to supply a return, or the local authority believes that a return supplied is incorrect, the local authority has the power, once regulations are made, to make an assessment of the levy payable by the liable person. The purpose of the powers in the Act is to give the local authority operating a VL scheme a mechanism to use in compliance situations, rather than having to immediately rely on penalties. When doing so, the local authority should ensure that it has the relevant information to conduct this assessment. 7. Where liable persons fail to make a return in the manner specified by the local authority, and where there is no reasonable excuse provided by the liable person, local authorities have the power to apply penalties at agreed time periods. The penalty rate for each time period is up to the discretion of the local authority, and they may wish to consider using existing agreed penalty charge approaches. For further information, see Chapter 13 Liable Persons. 8. The Act also sets out a range of further scenarios where local authorities may wish to apply penalties, with the amount of these penalties to be determined by the local authority: a. where the liable person fails to pay the total amount of the levy b. where the liable person fails to keep and preserve records c. where the liable person fails to comply with an information notice or deliberately obstructs an authorised officer or person authorised by the officer in the course of an inspection d. where the liable person provides inaccurate information or produces a document that contains an inaccuracy e. where documents subject to an information notice are concealed, destroyed or otherwise disposed of 9. As outlined in the Act, the liable person may have a reasonable excuse for failing to comply with these requirements. The definition of a reasonable excuse does not include the following: a. insufficient funds, unless attributable to events out with the liable person’s control b. reliance on any other person to do anything related to making a return, unless the liable person took reasonable care to avoid failure c. where a liable person previously had a reasonable excuse, but this excuse has ceased d. economic fluctuations which may be affecting the liable party’s business Page 153 of 160
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Guidance on the Visitor Levy for local authorities 80 10. There are a wide range of scenarios where a liable person could be seen to have a reasonable excuse for not submitting a return. In these cases, the local authority may wish to obtain evidence from the liable person to demonstrate this case. 11. The following list of potential examples of reasonable excuses should not be treated as exhaustive, and each case should be considered on individual merit by the local authority: a. Technical: the liable party is unable to access an online portal due to technical IT issues affecting all providers. The provider shall submit their return as soon as possible after issues with the portal are resolved, and within the deadline specified by the local authority. b. Illness or personal emergency: in cases where the liable person is incapacitated due to illness or experiences a personal emergency, the local authority may extend the deadline. c. Natural disasters or extreme weather: severe weather events or natural disasters that disrupt normal business operations may be considered a reasonable excuse. d. Loss of data: data loss or destruction of records due to reasons beyond the liable person’s control, including cyber-attack, hardware failure or theft. e. Legal or regulatory compliance: instances where the liable person faces legal or regulatory challenges that prevent them from complying within the deadline. This may include a dispute with tax authorities or compliance with a court order. f. Local authority delay or error: this could include errors, misunderstandings, or delays on the part of the local authority, leading to miscommunication or administrative errors. For example, this could also include changes in reporting requirements. 12. For more information on areas related to compliance please see Chapter 13 on Liable Persons and Chapter 10 on Calculation of a Levy. Page 154 of 160
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Shandwick Stone, Tain 26 Internal Review and Appeal ©Mark Janes Page 155 of 160
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Guidance on the Visitor Levy for local authorities 82 26 Internal Review and Appeal 1. An overnight accommodation provider is able to ask for an internal review by a local authority, so that it looks again at a decision related to their visitor levy liability, such as a decision to serve an information notice or apply a penalty. Once an internal review has been carried out then an accommodation provider, if still unhappy with the local authority’s decision, can appeal to the First Tier Tribunal. The details of the internal review and appeal processes will be fully discussed with stakeholders in due course, but they are likely to follow existing procedures for other local taxes, and so be familiar to both local authorities and businesses. 2. Therefore local authorities should keep abreast of Scottish Government work on the internal review and appeal process, and make sure they have the necessary resources to carry out effective internal reviews and handle any appeals, in line with the regulations that will be put in place. Perth Museum Page 156 of 160
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Guidance on the Visitor Levy for local authorities 84 27 Registers 1. Under the Act, a local authority has the power to establish and maintain a register of liable persons. This is not a mandatory requirement but at the discretion of the local authority. For further information, see Chapter 13 Liable Persons. This register can include the following information: a. the names of all liable persons offering overnight accommodation in the area covered by a VL scheme b. the addresses of all premises for overnight accommodation in the area covered by a VL scheme c. other information which the local authority considers necessary to allow it to carry out its functions under the Act 2. Under the Act, local authorities can share information with the following people or organisations, where it is necessary for the performance of a function as part of a VL scheme: a. relevant local authority officers b. other relevant local authorities where they have introduced a joint scheme c. a person authorised by the relevant local authority to carry out a function or functions of the authority 3. When considering the development of a register of liable persons as part of a VL scheme, local authorities should start by considering their duties under existing legislation and building on best practice and existing sources of information. 4. Local authorities are required to conduct a number of duties under the Data Protection Act 2018 and UK GDPR regulations. These include: a. only collecting information that is required b. keeping personal information secure c. not keeping information longer than necessary d. stating why the holding of personal information is required e. stating the purpose of data collection f. collecting data which is accurate and up to date g. not using personal information for purposes other than that stated Page 158 of 160
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On behalf of Whereas every effort has been made to ensure that the information in this document is accurate, VisitScotland does not accept liability for any errors, omissions or misleading statements, or for any loss, damage or inconvenience caused as a result of reliance on such information. VisitScotland is not responsible for the content of external websites which are linked to from this document. Stones of Stenness. Orkney Page 159 of 160
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