Agenda Document Pack - Kinross-shire Committee - 20/02/2025
Perth and Kinross Council · 20 February 2025
Back to Kinross-shire Committee — 20 February 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
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 13/02/2025 A hybrid meeting of the Kinross-shire Committee will be held in ICT Meeting Room, Loch Leven Community Campus on Thursday, 20 February 2025 at 17:00. If you have any queries please contact Committee 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. Voting Members Councillor Dave Cuthbert, Perth and Kinross Council (Convener) Councillor Richard Watters, Perth and Kinross Council (Vice-Convener) Councillor Neil Freshwater, Perth and Kinross Council Councillor Willie Robertson, Perth and Kinross Council Non-Voting Members Neill Bingham, Milnathort & Orwell Community Council Sarah Bruce-Jones, Fossoway Community Council Geoff Christie, Glenfarg Community Council Dave Morris, Portmoak Community Council Hannah Phillips, Kinross Community Council Fran Principe-Gillespie, Cleish & Blairadam Community Council Page 1 of 138
Page 2
Page 2 of 138
Page 3
Kinross-shire Committee Thursday, 20 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 2 DECLARATIONS OF INTEREST 3 MINUTE OF MEETING OF KINROSS-SHIRE COMMITTEE OF 21 NOVEMBER 2024 FOR APPROVAL (copy herewith) 5 - 10 4 OUTSTANDING BUSINESS STATEMENT (copy herewith 25/34) 11 - 14 5 GROW WILD Verbal Update by Lesley Ann Cassidy, Senior Greenspace Officer 6 TOURISM STRATEGY Verbal Update by Suzanne Cumiskey, Project Manager 7 PERTH AND KINROSS VISITOR LEVY - FOR NOTING Report by Strategic Lead - Economy, Development and Planning (copy herewith 25/28) 15 - 112 THIS REPORT WAS APPROVED BY ECONOMY AND INFRASTRUCTURE COMMITTEE ON 5 FEBRUARY 2025 8 VISITOR APP Verbal Update by Suzanne Cumiskey, Project Manager 9 ROAD SAFETY Verbal Update by Daryl McKeown, Senior Technician 10 ELECTRIC VEHICLE INFRASTRUCTURE FUND Verbal Update by Mike Lee, Transport Planning Officer 11 113 - 138 Page 3 of 138
Page 4
ADDITIONAL SUPPORT NEEDS SPECIAL EDUCATION PROVISION (PRIMARY AND SECONDARY SCHOOLS) - OPTIONS APPRAISAL - FOR NOTING Report by Strategic Lead - Education and Learning (copy herewith 25/19) THIS REPORT WAS APPROVED BY LEARNING AND FAMILIES COMMITTEE ON 29 JANUARY 2025 12 WINDFARM DEVELOPMENTS Committee Discussion Page 4 of 138
Page 5
KINROSS-SHIRE COMMITTEE Minute of hybrid meeting of the Kinross-shire Committee held in Loch Leven Community Campus, Milnathort, on Thursday 21 November 2024 at 5.00pm. Present: Councillors D Cuthbert, N Freshwater, W Robertson and R Watters; B Freeman (Kinross Community Council); S Bruce-Jones (Fossoway Community Council; N Bingham (Milnathort and Orwell Community Council); and D Smart (Glenfarg Community Council). In Attendance: L Haxton (Strategic Planning, People and Resources); S MacDonald and S Panton (Economy, Development and Planning); A Clegg and W Greig (Housing and Communities); and W Mahoney (Environment and Infrastructure); K Molley, A Brown and M Pasternak (Legal and Governance). Also in attendance: N Mainprize, TRACKS and; M Annet and N Marchant, Fossoway Community Development Trust. Councillor D Cuthbert, Convener, Presiding. The Convener led the discussion on Items 1-4, 7 and 9-14, with the Vice-Convener leading the discussion on Items 5, 6 and 8. 1. Welcome and Apologies The Convener welcomed all present to the meeting. 2. Declarations of Interest There were no Declarations of Interest made in terms of the Councillors’ Code of Conduct. 3. Minute of Previous Meeting The minute of meeting of the Kinross-shire Committee of 15 August 2024 was submitted and approved as a correct record. 4. Outstanding Business Statement Resolved: (i) It be noted that action 6 had now been completed. (i) The contents of the Outstanding Business Statement, be noted. (ii) It be agreed that completed actions would be removed from the Outstanding Business Statement. 3 Page 5 of 138
Page 6
5. Agenda Note L Haxton, Community Planning and Policy Team Leader, advised members of the remaining budget of £50,000 available to the Kinross-shire Committee for the current financial year. Members discussed different options of how the sum of £50,000 could be used. Councillor R Watters suggested using the monies towards the development of a mapping app which had been one of the main priorities of the Active Travel Masterplan. A Clegg advised that the Council do have a mapping system available for the Countryside Path Network. A Clegg advised that the tool could be investigated further to see if it would be suitable for other active travel formats. A Clegg suggested that an officer would attend the next committee in February to provide a demonstration on how the current system does work. Resolved: (i) It be agreed that the sum of £50,000 be earmarked for the development of a mapping app as part of the Active Travel Masterplan in Kinross-shire. (ii) A demonstration of Perth and Kinross Council’s current mapping tool be submitted to the Kinross-shire Committee in February 2025. 6. Former Blairingone Primary School There was a verbal update by M Annet and N Marchant, Fossoway Community Development Trust, on the process of the community asset transfer on the former Blairingone Primary School plus the attached schoolhouse and car park grounds to the Trust. As part of their update, M Annet and N Marchant confirmed that the Scottish Land Fund have funded consultants who engaged with communities and have produced different options for the site. M Annet and N Marcant confirmed that the Blairingone Sub-group (the hall committee) would like to carry on with the option to buy the site. The consultants had prepared an options appraisal and look to prepare a feasibility study and a business plan. To go to stage 2 of the process the Trust would have to fund an independent evaluation. The Trust have started to look at diverse options for the use of the former Blairingone Primary School for community benefit. L Haxton advised that a clarification on figures of the site to the Council would be provided and reported back to the Trust. L Haxton suggested that a further meeting be held with members from the Trust, A Peace – Senior Estates Surveyor, C MacLeod – Solicitor, S Kimmet, Community Empowerment Officer, and representatives from the Scottish Land Fund, to look at different ways that the site could generate income. The Committee noted the position. Page 6 of 138
Page 7
7. Windfarm Developments There was a verbal update by S Panton, Team Leader, Major Applications & Enforcement which highlighted the processes, including community consultation, and the status of the two major windfarm applications at Brunt Hill and Criaghead. S Panton advised that when a windfarm generates more than 50 MW regardless of the height of the turbine or how many turbines there are, the Scottish Government - Energy Consents unit would deal with that application and Perth and Kinross Council would become a consultee. Alternatively, if the windfarm generates less than 50 MW, Perth and Kinross Council would be the determining authority. S Panton confirmed that Brunt Hill application had been dealt with by the SG – Energy Consents Unit and Craighead application by Perth and Kinross Council. S Panton advised that both windfarm applications are currently on hold. S Panton confirmed that he would report back to the committee with Planning’s recommendations on the applications once they are ready to be considered by the Planning and Placemaking Committee. Members questions were answered. The Committee noted the position. 8. P&K Tourism Strategy There was a verbal update by S MacDonald, Economic Development Manager – Tourism, Culture and Place provided a verbal update on the Perth and Kinross Tourism strategy. S MacDonald led a discussion on engagement which key stakeholders and communities in Kinross-shire on the development of the Perth and Kinross Tourism Strategy and how the committee could be involved in the process. S MacDonald advised that the Strategy would cover several key areas such as destination marketing, an infrastructure plan, events and business support. S MacDonald advised that a couple of consultation workshops had been arranged in Birnam for mid-December for the whole of Perth and Kinross and suggested a separate session in Kinross-shire as a lot of activity does occur in the area. Members were in favour of the suggestion. In response to a question from Councillor R Watters regarding timings for the local consultation in Kinross-shire, S MacDonald hoped that the consultation period would be completed by the end of January. S MacDonald confirmed that the Tourism Strategy and Action Plan would be submitted to the Economy and Infrastructure Committee in early 2025 and the Tourism Levy would be submitted to the Finance and Resources Committee for approval in April. The Committee noted the position. Page 7 of 138
Page 8
9. Core Paths A Clegg, Community Greenspace Manager, delivered a short slide-based presentation on the process of new core paths. In response to a question from Councillor W Robertson regarding the potential new core paths in Kinross-shire and if resources are available to take those forward, A Clegg advised that if not contentious, the team may be able to proceed, however, if the amendment was to be contentious, the suggestion would be noted and added to the list to be looked at under the Core Paths Plan Review when available. A Clegg advised members that they are welcome to contact him or his team with suggestions for new core paths or amendments. The Committee noted the update. 10. Infrastructure Adoption (Roads and Greenspace) A Clegg, Community Greenspace Manager delivered a short slide-based presentation on greenspace adoption. W Mahoney, Senior Engineer, provided a further update in relation to the process of the adoption of roads. The Committee noted the position. 11. Tracks – Loch Leven Heritage Trail There was a verbal update by N Mainprize, The Rural Access Committee for Kinross-shire (TRACKS) Project Officer on the condition and work being undertaken of the Loch Leven Heritage Trail. N Mainprize outlined the next phase of the project and advised that TRACKS are seeking further funding to carry out the works. W Robertson confirmed that he had been in discussions with the Leader of the Council and hoped that £30,000 for the project would form part of the Council Budget for 2026/27. The Committee noted the position. 12. Cemetery Expansion W Greig, Senior Bereavement Services Officer, delivered a short slide-based presentation on the cemetery expansion. The Committee noted the position. Page 8 of 138
Page 9
13. Kinross-Shire Community Investment Fund 2024/25 There was submitted a report by Strategic Lead – Housing and Communities (24/323) (2) asking Committee to homologate the decisions made by the Kinross- shire Ward Panel for the 2023/24 Community Investment Fund, and also (2) summarising the process for a further round of funding to be completed before the end of the 2023/24 financial year. Resolved: The funding decisions taken by the Ward Panel outlined in Report 24/323, be homologated. 14. Committee Development Session Members agreed for the item to be brought back to committee in February 2025 to discuss further if a committee development session would be required and to give members the opportunity to look at what the committee does well and what could be done differently. ~~~~~~ Page 9 of 138
Page 10
Page 10 of 138
Page 11
KINROSS-SHIRE LOCAL COMMITTEE OUTSTANDING BUSINESS STATEMENT (OBS) (Report No. 25/34) 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 Action Update Lead Officer /Service Action due Action Expected 8. 24 August 2023 Community Transport Forum An item to be brought to a future meeting of the Kinross-shire Committee. D Smart, Chair of Glenfarg Community Transport Group presented at Committee. A meeting to be arranged with the Convener, Vice- Convener, D Smart and M Roy. The meeting will be open to other members. COMPLETE Margaret Roy 21 February 2024 21 February 2024 4 Page 11 of 138
Page 12
The meeting to cover active travel generally, instead of solely concentrating on the bus service in Kinross-shire. 14. 21 November 2024 Item 5. Agenda Note – Remaining budget for Kinross An officer to attend the next committee in February to provide a demonstration of how the Council’s current mapping system works. Andy Clegg 21 February 2025 21 February 2025 15. 21 November 2024 Windfarm Developments Information be reported back to committee on Planning’s recommendations on the Criaghead and Brunt Hill applications once they are ready to be considered at the Planning and Placemaking Committee. COMPLETED Sean Panton 21 February 2025 21 February 2025 16, 21 November 2024 Item 8. P&K Tourism Strategy A consultation session in Kinross- shire be arranged COMPLETED Steve MacDonald 21 February 2025 21 February 2025 Page 12 of 138
Page 13
for key stakeholders and communities. 17. 21 November 2024 Item 14. Committee Development Session The item to be brought back to the meeting in February for discussion. 21 February 2025 21 February 2025 Page 13 of 138
Page 14
Page 14 of 138
Page 15
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. 7 Page 15 of 138
Page 16
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 16 of 138
Page 17
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 17 of 138
Page 18
• 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 18 of 138
Page 19
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 19 of 138
Page 20
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 20 of 138
Page 21
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 21 of 138
Page 22
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 22 of 138
Page 23
(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 23 of 138
Page 24
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 24 of 138
Page 25
• 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 25 of 138
Page 26
Page 26 of 138
Page 27
Guidance on the Visitor Levy for local authorities October 2024 7 Page 27 of 138
Page 28
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 28 of 138
Page 29
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 29 of 138
Page 30
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 30 of 138
Page 31
01 Power to Introduce a Levy V&A Dundee and RRS Discovery Page 31 of 138
Page 32
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 32 of 138
Page 33
02 Timeline The Old Man of Storr, Isle of Skye Page 33 of 138
Page 34
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 34 of 138
Page 35
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 35 of 138
Page 36
03 Required Content of a Visitor Levy Scheme Inner Forth Cycle Route Page 36 of 138
Page 37
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 37 of 138
Page 38
04 Forecasting Edinburgh Fringe Festival performers Page 38 of 138
Page 39
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 39 of 138
Page 40
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 40 of 138
Page 41
05 Early Engagement Sands of Meal, Shetland©Euan Myles Page 41 of 138
Page 42
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 42 of 138
Page 43
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 43 of 138
Page 44
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 44 of 138
Page 45
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 45 of 138
Page 46
06 Consultation Discover Scotland Event Page 46 of 138
Page 47
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 47 of 138
Page 48
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 48 of 138
Page 49
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 49 of 138
Page 50
Bike Bute Hire 07 Implementation Period Page 50 of 138
Page 51
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 51 of 138
Page 52
Gaelic Sign, Plockton 08 Equalities Page 52 of 138
Page 53
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 53 of 138
Page 54
Rhoderick Dhu Viewpoint, Loch Lomond and Trossachs National Park 09 Scheme Publication Page 54 of 138
Page 55
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 55 of 138
Page 56
10 Calculation of a Levy The Watchers at Corgarff, Cairngorms National ParkPage 56 of 138
Page 57
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 57 of 138
Page 58
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 58 of 138
Page 59
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 59 of 138
Page 60
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 60 of 138
Page 61
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 61 of 138
Page 62
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 62 of 138
Page 63
Lochrin Basin, Edinburgh 11 Rate Setting Page 63 of 138
Page 64
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 64 of 138
Page 65
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 65 of 138
Page 66
12 Use of Funds Aberdeen Art Gallery Page 66 of 138
Page 67
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 67 of 138
Page 68
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 68 of 138
Page 69
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 69 of 138
Page 70
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 70 of 138
Page 71
13 Liable Persons Jedburgh Abbey Page 71 of 138
Page 72
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 72 of 138
Page 73
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 73 of 138
Page 74
14 Assistance for Liable Persons Mull of Galloway Lighthouse Page 74 of 138
Page 75
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 75 of 138
Page 76
15 Billing of Overnight Accommodation Princes Street, Edinburgh Page 76 of 138
Page 77
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 77 of 138
Page 78
16 Remittance Belladrum Tartan Heart Festival Page 78 of 138
Page 79
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 79 of 138
Page 80
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 80 of 138
Page 81
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 81 of 138
Page 82
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 82 of 138
Page 83
17 Exemptions The Riverside Museum, Glasgow Page 83 of 138
Page 84
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 84 of 138
Page 85
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 85 of 138
Page 86
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 86 of 138
Page 87
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 87 of 138
Page 88
Hebridean Way, Vatersay 18 Islands Page 88 of 138
Page 89
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 89 of 138
Page 90
19 Local Flexibilities Castlebay Charging Point, Isle of Barra Page 90 of 138
Page 91
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 91 of 138
Page 92
Dunfermline Carnegie Library 20 Communication Page 92 of 138
Page 93
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 93 of 138
Page 94
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 94 of 138
Page 95
Scalpsie Bay, Argyll and the Isles 21 Visitor Levy Forum Page 95 of 138
Page 96
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 96 of 138
Page 97
Wemyss Bay Railway Station 22 Accounting Page 97 of 138
Page 98
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 98 of 138
Page 99
An Ceann Mòr, Inveruglas 23 Annual Reporting Page 99 of 138
Page 100
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 100 of 138
Page 101
The Larch View Route, Forest of Ae, Dumfries 24 Review of a Scheme Page 101 of 138
Page 102
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 102 of 138
Page 103
25 Compliance Ballater Highland Games, Aberdeenshire Page 103 of 138
Page 104
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 104 of 138
Page 105
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 105 of 138
Page 106
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 106 of 138
Page 107
Shandwick Stone, Tain 26 Internal Review and Appeal ©Mark Janes Page 107 of 138
Page 108
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 108 of 138
Page 109
Adam Smith Heritage Centre, Kirkcaldy 27 Registers Page 109 of 138
Page 110
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 110 of 138
Page 111
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 111 of 138
Page 112
Page 112 of 138
Page 113
Perth and Kinross Council Learning and Families Committee 29 January 2025 Additional Support Needs Special Education Provision (Primary and Secondary Schools) - Options Appraisal Report by Strategic Lead – Education and Learning (Report No. 25/19) 1. Purpose 1.1 This report requests that the Learning and Families Committee considers options to improve and increase intensive-level education for children and young people with complex additional support needs (ASN) in all Perth and Kinross Council (PKC) school localities. 1.2 If the recommended option is supported, it would be implemented over three phases. Phase 1 involves the development of new Intensive Support Provisions (ISPs) in Kinross High School, Perth High School and a primary school in the Perth Academy catchment area. All three new ISPs will require that a statutory consultation be undertaken to permanently establish a new stage of education within the schools. Work is ongoing to identify a suitable primary school for a new ISP within the Perth Academy catchment area. A further report in relation to this, will be brought to the Learning and Families Committee on 2 April 2025. 1.3 Phase 2 and Phase 3 will involve the development of new ISPs in an additional five schools. Reports seeking agreement for statutory consultations to be undertaken, in relation to the proposals for Phase 2 and Phase 3 schools, will be brought to future meetings of the Learning and Families Committee in due course. 2. Recommendations 2.1 It is recommended that the Committee: • Considers the options outlined in the Options Appraisal (Appendix 1) to increase provision of locally available ISP placements for children and young people with complex and multiple ASN in PKC schools; • Agrees to progress with the recommended Option 3 (Appendix 1); • Agrees to progress Phase 1 of Option 3 to establish new ISPs in one primary school and two secondary schools; • Requests the Strategic Lead (Education and Learning) to prepare and publish proposal papers to establish ISPs as new stages of education in Kinross High School and Perth High School, in terms of the Schools (Consultation) (Scotland) Act 2010; 11 Page 113 of 138
Page 114
• Requests the Strategic Lead (Education and Learning) to formally consult the appropriate bodies and persons on the terms of the proposal papers, in terms of the Schools (Consultation) (Scotland) Act 2010; • Delegates authority to the Strategic Lead (Education and Learning) to investigate and manage any alleged omissions or inaccuracies during the consultation process and to take appropriate action in accordance with the Schools (Consultation) (Scotland) Act 2010; • Requests the Strategic Lead (Education and Learning) to prepare a report on the results of the Statutory Consultations and report back on the outcome of these consultations at a future meeting of the Learning and Families Committee in due course; and • Requests the Strategic Lead (Education and Learning) brings a further report to the Learning and Families Committee on 2 April 2025 in relation to identification of a primary school within the Perth Academy catchment area, within which, a new ISP can be accommodated. 3. Structure of Report 3.1 This report is structured over the following sections: • Section 4: Background/Main Issues • Section 5: Options for Consideration • Section 6: Statutory Consultation Process • Appendices 4. Background/Main Issues 4.1 PKC, as an Education Authority, has a statutory duty under the Education (Scotland) Act 1980 to make adequate and efficient provision of school education across its entire area for the current school population and future pattern of demand. The Education (Additional Support for Learning) (Scotland) Act 2004 places duties on PKC to provide additional support to enable children and young people to benefit from their education. 4.2 The ASN Transformation Programme aims to significantly improve educational experiences provided for children and young people with ASN in Perth and Kinross. The programme's vision is to help these children thrive, gain independence, and lead fulfilling lives by ensuring that they can access the best possible learning environment and support whilst in PKC Early Learning and Childcare settings or schools. 4.3 In Perth and Kinross, and across Scotland, there is a rising number of children and young people with ASN. Data collected in September 2024 identified that 39% of children and young people in PKC schools have ASN, reflecting a notable increase over recent years. Within this overall identified percentage, it is evident that there is also a rise in the number of children and young people with complex and multiple needs. Page 114 of 138
Page 115
4.4 There are currently fifteen ISPs distributed across nine primary schools (six secondary catchment localities) and six secondary schools for children with complex or multiple needs who are unable to benefit from mainstream education. Together, these ISPs provide special education for 300 children and young people aged 5 to 18 years old. Several of the ISPs are currently at capacity or over-capacity. 4.5 A feasibility study considered the rise in complex and multiple ASN and the availability of ISP placements. This highlighted the current capacity issues; inequity of opportunity and an associated transport budget overspend. It emphasised the need for expansion and better geographical distribution of ISPs to improve the experience of children, young people and families, reduce travel costs and the demand for independent special school placements. 4.6 This report presents options that can be implemented to address the areas identified as requiring improvement. The proposal will increase capacity in localities, reduce travel distances and the associated costs, and improve the educational experience of children, young people and their families. 5. Options for Consideration 5.1 Options have been explored to address the increasing requirement for ISP placements for children and young people with ASN. Consideration of each option is detailed in Appendix 1. A summary of the options are as follows: • Option 1: Maintain existing ISP provision. • Option 2: Establish additional ISPs by redistributing existing resource to provide some specialist education to almost all secondary schools and their primary catchments. • Option 3: Establish additional ISPs through new Scottish Government funding and the redistribution of resource to increase placement capacity, extending availability of specialist education to almost all secondary schools and their primary catchments. 5.2 The recommended option is Option 3, which will involve establishing additional ISPs to provide sufficient placements for the current and projected number of children and young people with complex or multiple ASN who require intensive-level (special) education close to their home locality. 5.3 This will require the development of eight additional ISPs over the next four-year period. Development of each ISP will require careful consideration to ensure that the proposed school will have capacity and accommodation that can be suitably adapted to meet the ASN of the children and young people placed there and that there is no detrimental impact on the wider school population. 5.4 There will require to be a Statutory Consultation undertaken for each new ISP (see Section 6 below) as developing a new permanent ISP constitutes establishment of a new stage of education within schools which do not Page 115 of 138
Page 116
currently have an ISP. This is a relevant proposal under the Schools (Consultation) (Scotland) Act 2010 requiring a statutory consultation to be undertaken. 5.5 Phase 1 of Option 3 will be completed in academic year 2025/26. It is proposed a Statutory Consultation is completed on a proposal to permanently establish new ISPs by January 2026 in two secondary schools, Perth High School and Kinross High School. At the same time, further assessment of the school estate will be undertaken to identify a suitable school to accommodate an ISP in a primary school within the catchment area of Perth Academy. It is proposed that the outcome of that assessment is brought forward to the Learning and Families Committee on 2 April 2025 with a request to undertake a Statutory Consultation on this option. 5.6 Phase 2 of Option 3 will involve assessment of the school estate to consider options to incorporate a new ISP in the Community School of Auchterarder secondary school and also an ISP in one of its catchment primary schools; and in St Johns (RC) Academy and also an ISP in one of its catchment primary schools. 5.7 Phase 3 of Option 3 will involve developing a new ISP for primary aged children in the Kinross High School catchment area. 6. Statutory Consultation Process 6.1 The Education (Additional Support for Learning) (Scotland) Act 2004 places duties on Education Authorities to provide additional support to enable children and young people to benefit from their education. Education Authorities have a statutory duty in terms of the Education (Scotland) Act 1980 to make adequate and efficient provision for school education across their area. This duty applies in respect of both the current school population and anticipated pattern of demand. In addition, Councils have a statutory duty to secure best value in terms of the Local Government in Scotland Act 2003. 6.2 If Option 3 is agreed, the proposal to establish ISPs at Perth High School and Kinross High School will be progressed through formal consultation of the appropriate bodies and persons on the terms of the proposal paper for each school, all in terms of the Schools (Consultation) (Scotland) Act 2010. Authors Name Designation Contact Details Fiona Mackay Service Manager, Inclusion FBSCommittee@pkc.gov.uk 01738 475000 Sarah Stephen Quality Improvement Officer, Inclusion Page 116 of 138
Page 117
Approved Name Designation Date David Macluskey Strategic Lead – Education and Learning 20 January 2025 Page 117 of 138
Page 118
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) No Assessments Equality Impact Assessment Yes Strategic Environmental Assessment No Sustainability (community, economic, environmental) Yes Legal and Governance Yes Risk No 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 Objective No. (ii). 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 No. (ii). Page 118 of 138
Page 119
1.3 The report also links to the Education and Learning; and the Children, Families and Justice Services Vision, Values and Priorities in respect of the following key Priority area: • Learning and Achievement 2. Resource Implications Financial 2.1.1 The revenue cost of the current scope, of the overall project, has been estimated at £98,658. 2.1.2 The revenue costs associated with the implementation of the recommended option primarily relates to staffing and are set out in Appendix 1. Teaching costs will be met from within the current Education and Learning budgets. Additional support staff costs will be funded from Scottish Government funding for ASN. It is anticipated that the roll out of Phase 1 and Phase 2 of the recommended option will reduce the need for independent school placements, and it is proposed that this reduction will fund the staffing required for Phase 3. 2.1.3 Capital construction work will be required to support the development of the proposed ISP environments and will require budget funds to support the adaptations to create appropriate learning environments. Detailed costings to support completion of the work required in Phase 1 are being developed and will be reported to a future Learning and Families Committee prior to being formally asked to make any final decisions following the statutory consultation. 2.1.4 Any resource implications arising from the statutory consultation are likely to relate primarily to staff time and will therefore be contained within the Education and Learning revenue budget. 2.1.5 The Strategic Lead – Finance and Business Support has been consulted on the proposals within the report. Workforce 2.2 As a result of this report, there will be workforce implications in terms of resourcing any statutory consultation for several teams across Council services which include Business Support, Finance, Property, Human Resources and Legal Services. As part of the statutory consultation, there is a requirement to consult with staff affected by the proposal. Asset Management (land, property, IT) 2.3 N/A. Page 119 of 138
Page 120
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. 3.1.1 The proposals have been considered under the Corporate Equalities Impact Assessment process (EqIA) with the following outcome: • Assessed as relevant and actions taken to reduce or remove the following negative impacts: • An Equality and Fairness Impact Assessment and United Nations Convention on the Rights of the Child (UNCRC) Assessment will be undertaken as part of the statutory consultation process. 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. 3.2.1 The proposals have been considered under the Act: however, 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 adaption programmes. • In a way that it considers most sustainable. 3.3.1 This report seeks to reduce emissions by establishing ISPs in the local communities of children and young people allocated a placement, which will reduce the number of miles they require to be transported to and from school. Legal and Governance 3.4.1 Councils, as Education Authorities, have a statutory duty under the Education (Scotland) Act 1980 to make adequate and efficient provision of school education across their entire area for the current school population and future Page 120 of 138
Page 121
pattern of demand. The Education (Additional Support for Learning) (Scotland) Act 2004 places duties on Education Authorities to provide additional support to enable children and young people to benefit from their education. 3.4.2 Establishing a new permanent ISP would be considered to be a new stage of education within a school. This requires a statutory consultation in accordance with the Schools (Consultation) (Scotland) Act 2010 which sets out a comprehensive framework for this consultation process. The consultation exercises required will be undertaken in accordance with the 2010 Act. 3.4.3 Legal Services has been fully consulted in relation to this report and the proposed consultation exercise. 3.5 Not applicable. Risk 3.6 Risks associated with delivery of this workstream of the ASN Transformation Programme are included and monitored in the programme’s risk profile. 4. Consultation Internal 4.1 The Strategic Leads for Legal and Governance, Finance and Business Support, and Services for Children, Families and Justice and key officers in Legal, Business Support, Property Services and Finance have been consulted in the preparation of this report. Headteachers, directly related to Option 3, have also been consulted. 4.2 School staff will be involved in the statutory consultations undertaken. External 4.3 The statutory consultation exercise to be undertaken in respect of this proposal will consult with all statutory stakeholders. 4.4 Informal consultation with stakeholders has already been undertaken through ASN Transformation Programme exercises. 5. Communication 5.1 A communications plan will be prepared and implemented to support each statutory consultation exercise. Page 121 of 138
Page 122
2. Background Papers 2.1 No background papers, as defined by Section 50D of the Local Government (Scotland) Act 1973 (and not containing confidential or exempt information) were relied on to a material extent in preparing the above report. 3. Appendices 3.1 Appendix 1 - Development of Intensive Support Provisions - Options Appraisal Page 122 of 138
Page 123
1 Appendix 1 Development of Intensive Support Provisions – Options Appraisal 1. Introduction The Additional Support Needs (ASN) Transformation Programme aims to significantly improve the educational experience for children and young people with additional support needs in Perth and Kinross. The programme's vision is to help these children thrive, gain independence, and lead fulfilling lives by ensuring they can access the best possible learning environment and support whilst in Perth and Kinross Council Early Learning and Childcare (ELC) settings or schools. Nationally and locally, there are a rising number of children and young people with ASN, including those with Autism Spectrum Disorder (ASD), Social, Emotional & Behavioural Needs (SEBN), and other complex needs. The Pupil Census 2024 data reported 6,973 P1 – S6 pupils with ASN, representing 39% of the total number of pupils, up from 35% in 2023. Within these figures it is also the case that there is a rise in the complexity and level of need. To meet these growing needs, the programme is structured around four key workstreams: People, Policy, Partnerships, and Place. By delivering improvement in each of these areas, Education and Learning will transform the education offer for children and young people with additional support needs and, in turn, the education offer to all children. This paper supports delivery of the Place workstream and considers the need to establish additional Intensive Support Provisions (ISPs) to enable children and young people with complex and multiple additional support needs to be able to access the education they require within or close to their own community. The placement of children and young people in ISPs close to their own communities will reduce travel distances for children accessing ISPs. A recent feasibility study has highlighted the current capacity issues, inequity of opportunity and transport budget overspend. The study emphasised the need for expansion and better geographical distribution of ISPs to reduce travel costs, improve the experience of children, young people and families and reduce demand for independent special school placements. There is other related activity underway to improve and standardise existing ISP environments and review the ISP staffing model to ensure it is able to effectively meet the increasingly complex needs of children now accessing ISPs. 2. Background There has been a significant increase in the number of children and young people with complex and multiple ASN over recent years. The Staged Intervention Framework for ELC settings and schools, with realignment of resource established a structure of enhanced support to enable more children and young people with complex needs to be able to access their right to a mainstream education (Presumption of mainstream). 11 Page 123 of 138
Page 124
2 The availability of enhanced support has positively impacted children by placing them in the most suitable environment for their needs and has reduced the number of children escalating to intensive-level education. This enhanced support is not a replacement for ISP placements, which are still necessary for children with complex and multiple needs who are unable to benefit from mainstream education. However, sustainable investment in enhanced support is necessary as without it an increased number of children will require ISP placements. Support at this enhanced level typically includes targeted Pupil Support Assistant (PSA) support and Outreach Teacher intervention. Temporary additional funding provided in 2024/25 enabled the addition of Early Childhood Practitioner (ECP) and Play Assistant support to augment the enhanced support teams. These supports have enabled mainstream schools and class teachers to adapt to successfully included children with needs at this level in their local mainstream schools. There has also been an increase in the number of children and young people who experience significant sensory overload in mainstream environments but are able to access a mainstream curriculum. There are difficulties in reducing the stimulus in busy school environments to provide the low-arousal environments needed by these children and young people. This has led to an increase in levels of emotional-based absence, particularly for young people in the secondary sector, and demand for ISP and independent special school placements, which creates pressure in the overall system. To begin to address this level of need, a class with a low-stimulus environment was established in Coupar Angus Primary School ISP in August 2024 to support up to six primary-aged children identified as requiring an alternative to their mainstream setting. Related to this is an increase in parental placing requests for independent special schools and ASN Tribunals if placing requests are refused. The increased number of children and young people unable to access their education in a mainstream setting, even with the introduction of specific enhanced support, due to the complexity of their needs, has increased the demand for ISP placements. Education provided at this level is also known as special education. The complexity of needs of children requiring this level of support includes many children being non-verbal, requiring personal care, and/or requiring a low-arousal environment. 3. Current Position The current Perth and Kinross Council provision for children and young people with complex ASN who require specialist, intensive-level, education is outlined below. Fairview School is a purpose-built special education school that serves children and young people aged 3 to 18 years old with profound and complex ASN. The school has a capacity of 65 pupils and operates at full capacity most years. The staffing ratio at Fairview is 4 staff members for every 6 pupils, and the school consists of 11 classes, including one nursery class. The senior leadership team includes a headteacher, a depute headteacher, and two principal teachers. Page 124 of 138
Page 125
3 There are 15 Intensive Support Provisions (ISPs) based within nine primary schools and six secondary schools. Together these ISPs provide special education for children and young people aged 5 to 18 years old. Children and young people are allocated a place in an ISP, in line with the Council’s Admissions Policy, by a panel of Education and Learning Officers who consider a comprehensive assessment of the children and young people’s needs. The limited number of ISPs means that some children and young people are placed in ISPs out with their secondary school catchment. The current overview of placements across primary and secondary Intensive Support Provisions is as follows: Primary Provision No of Classes Capacity Current placements Pupils outwith catchment Coupar Angus 3 22 19 21% Crieff 2 16 15 20% Errol 1 8 8 66% Inch View 2 16 20 43% Oakbank 2 16 17 47% RDM 4 20 24 33.3% Riverside 2 16 20 30% Tulloch 2 16 17 29.4% Secondary Provision No of Classes Capacity Current placements Pupils outwith catchment Bertha Park 4 32 30 67% Blairgowrie High 4 32 33 9% Crieff High 2 16 18 17% Perth Academy 4 32 35 37% Perth Grammar 4 32 33 21% All-through Provision No of Classes Capacity Current placements Pupils outwith catchment Breadalbane 2 16 11 54% ISPs with 2 or more classes have a Principal Teacher with a teaching commitment and a staffing ratio of 2 staff (1 teacher/1 PSA) to 8 children/young people, with the exception of RDM Primary where class sizes are restricted due to room capacity. The decision to exceed the standard capacity of an ISP is taken following careful consideration of the needs of existing children and young people, staffing and classroom capacity. With the increasing complexity of need requiring higher staff:pupil ratios it will not be possible to exceed capacity in many future situations. In total, the current ISPs provide education for 300 children and young people. The current distribution of schools with an ISP means that some of the secondary schools and their associated group of catchment primary schools do not have an ISP, resulting in children and young people being placed in a school outside their local community. For example, there are no ISPs in primary or secondary schools within the catchments for: Page 125 of 138
Page 126
4 • Community School of Auchterarder • St John’s Academy • Kinross High School Additionally, Perth High School does not have an ISP despite having three primary schools with ISPs in its catchment area, conversely Bertha Park High School has an ISP but does not have any catchment primary schools with an ISP. The lack of ISPs in these catchments has several implications. It can result in a sense of community disconnection for children and young people being placed outside their local areas. It means that some of the most vulnerable children and young people in Perth and Kinross Council schools are having to travel significant distances to school each day and for some this can increase feelings of distress before the school day has even begun. It also leads to increased transport costs as children need to travel to schools outside their local communities, requiring longer journeys, therefore with an environmental impact. Addressing the gaps and expanding provisions in more catchments will help ensure, as far as possible, that children and young people with ASN can access education within their local communities, reducing transport costs and fostering a stronger sense of belonging. Pitlochry High School and catchment primaries also do not have an ISP at either primary or secondary stage. Where required the children and young people from this catchment access the ISPs at Breadalbane Academy as the two catchments come together to form the Highland Local Management Group. 4. Projected placement requirements The allocation of ISP placements is considered by Education and Learning professionals following assessment of the additional support needs of the children and their ability to access learning in a mainstream school. Children can be placed in an ISP placement for P1 or at any point through primary or secondary school if this is deemed required. Assessments are compiled by the ELC setting or school the child currently attend, the child’s parents and Inclusion teachers (early years) and Educational Psychologists. The local authority also has a duty to consider any placing requests made by parents for any specific ISP. It is possible to predict the number of secondary ISP placements required in future years based on the number of children and young people already assessed and placed in an ISP. However, it is anticipated that demand will increase as some of the children in receipt of enhanced support in primary schools will require an ISP placement by the time they start secondary school. Predictions for how many placements will be needed each year will to be tested over time, as currently most children involved are only in P1 or 2. If provision of enhanced support in primary schools reduces, it will increase pressure for more ISP placements. The number of children presenting at P1 who require a primary ISP placement is less predictable over the long-term as the number has grown and it is not yet clear if the year-on-year number has stabilised. It is important to note that the demand for placements could Page 126 of 138
Page 127
5 also vary as a result of families moving into the area. Analysis of previous years indicates this could be as high as 10 children or young people a year. Current projections based on the information available for both primary and secondary sectors indicate that there are not sufficient placements in ISPs to meet the level of need for the academic year 2025/26. Without additional ISP placement capacity, Education and Learning will be required to meet the increased cost of providing additional teachers and PSAs to support more enhanced level of support within mainstream. Primary – August 2025 Local Management Group Highland Perthshire Blairgowrie Crieff Perth High Perth High Perth High Perth Academy Perth Grammar Perth Grammar Name of ISP School Breadalba ne Coupar Angus Crieff Errol Inch View Oakbank RDM Riverside Tulloch Total Available placements in ISP 8 16 16 8 16 16 20 16 16 132 Current placements filled 4 15 15 8 21 17 24 20 17 141 P7 leavers June 2025 1 2 3 1 3 2 4 5 3 24 Total available spaces to accommodate P1 intake August 2025 5 3 4 1 0 1 0 1 2 17 Number of children being considered for possible P1 placement in an ISP – decisions on requirement for ISP placements will be made following consideration of assessments by the end of January 2025 36 Secondary – August 2025 Name of ISP school Bertha Park Blairgowrie Breadalbane Crieff High Perth Academy Perth Grammar Total Total available placements in ISP 32 32 8 16 32 32 152 Current placements filled 29 35 7 20 36 33 160 S6 leavers May 2025 2 6 1 3 4 7 25 Confirmed S1 intake 6 2 1 2 8 7 25 Total spaces available following S1 intake August 2025 -1 1 1 -3 -8 -1 -11 * Minus numbers indicate the number of placements over capacity Based on the above data it is clear that there will be an insufficient number of ISP placements in the years from August 2025 onwards without development of additional classes in existing ISPs or additional ISPs. Page 127 of 138
Page 128
6 5. Legislation Councils, as Education Authorities, have a statutory duty under the Education (Scotland) Act 1980 to make adequate and efficient provision of school education across their entire area for the current school population and future pattern of demand. The Education (Additional Support for Learning) (Scotland) Act 2004 places duties on Education Authorities to provide additional support to enable children and young people to benefit from their education. Councils also have a statutory responsibility in terms of the Local Government in Scotland Act 2003 to achieve best value, including considering occupancy and the efficient use of resources. The Council's Learning Estate Strategy (2021) provides information on the overall objectives and future priorities of Perth & Kinross Council in relation to delivery of these statutory obligations in relation to the school estate. The Education (Scotland) Act 2016 amends the Standards in Scotland’s Schools Act 2000 by adding in new duties to address inequality of outcome. These duties apply in different ways to both Scottish Ministers and Education Authorities. Where the Education Authority is making or implementing strategic decisions about education, it is required to have due regard to the need to carry out its functions in a way which is designed to reduce inequalities of outcome. This is particularly directed in the Act towards children who experience those inequalities through socio-economic disadvantage. 6. Options Considered The Education (Additional Support for Learning) (Scotland) Act 2004 places a duty on education authorities to plan and make provision for children and young people with additional support needs, which includes those with complex or multiple needs. Education and Learning are therefore required to keep under review and take action to ensure that education provision in the local authority area includes sufficient provision of intensive level education for children and young people with complex or multiple ASN. To address this duty, three options have been identified: • Option 1: Maintain existing ISP provision. • Option 2: Establish additional ISPs by redistributing existing resource to provide some specialist education to almost all secondary schools and their primary catchments. • Option 3: Establish additional ISPs through new Scottish Government funding and redistribution of resource to increase placement capacity, extending availability of specialist education to almost all secondary schools and their primary catchments. Page 128 of 138
Page 129
7 Options 1 and 2 will not deliver the number of placements required for children and young people with complex or multiple need in future years. The preferred option is Option 3 which would be delivered over three phases between January 2025 and December 2028. This will provide sufficient capacity to meet current and projected needs, including ensuring almost all children and young people are able to access education in their local community. Option 3 includes redistributing staff resources from some existing ISPs as they reduce in size following children and young people realigning to ISPs in their secondary school or associated primary school catchment area. It will also require capital and revenue funding to increase overall capacity. Delivery of Option 3 will involve establishing additional ISPs in • one primary school and two secondary schools in Phase 1; • two primary schools and two secondary schools in Phase 2; and • two primary schools in Phase 3. By increasing placement capacity, it will be possible for some ISPs to include classes with low-stimulus environments for children able to access mainstream curricula but experiencing significant sensory overload in a mainstream environment. This approach ensures that the needs of children with complex autism are met within their local communities rather than through placements in independent special schools. 6.1 Option 1: Maintain Existing ISP Provision Maintaining the current number and spread of ISPs without any expansion or redistribution of resources would present significant limitations on the Council’s ability to meet its statutory duties. This would manifest as follows: • Significant unmet needs: There will be an insufficient number of ISP placements for children and young people with complex or multiple additional support needs, leading to children and young people having to remain in mainstream placements with significant additional staffing and associated costs. This would result in potential dissatisfaction among parents and carers including formal complaints, and increased staffing costs. • Increased Placing Requests and ASN Tribunals: An insufficient number of ISP placements may also lead to increased placing requests for independent special school placements. This would likely result in more legal disputes and ASN tribunals, as a result of parental dissatisfaction with their child’s educational offer and significant budgetary implications due to the cost of such placements. • Increased staff reports of incidents of distressed, challenging, violent or aggressive behaviour in schools: this can impact on the wellbeing of the pupil themselves, the learning of others and staff wellbeing, placing additional strain the council's workforce and negatively impact the local authority’s reputation. • Impact on staff morale and attendance: Staff would be under continued pressure to meet the complex needs of students without sufficient resources, Page 129 of 138
Page 130
8 negatively impacting their feeling of job satisfaction. This could lead to higher staff turnover and difficulty in maintaining a stable and experienced workforce. 6.2 Option 2: Extend ISPs by Redistributing Existing Resources This option involves establishing four new ISPs by reducing the size of existing ISPs and redistributing the existing staff to the new provisions. It would not involve allocation of any new resource. While this approach offers some improvements in relation to better coverage of school catchment areas and therefore access to a local ISP for more children and young people, it has limitations: • Limited Impact on meeting current needs: Redistributing existing resources would not create any additional placements and, therefore, would not be sufficient to meet the current demand for placements required for children and young people with complex or multiple ASN. This could lead to continued capacity issues and unmet needs and parental dissatisfaction. • This will not meet predicted future demand: As the number of children with ASN continues to rise, this option would not be sustainable in the long term. Education and Learning would still face challenges in providing adequate support, leading to potential increases in placing requests for independent special schools and associated costs. • As a result, similar implications would arise as laid out in under option 1. 6.3 Option 3: Extend ISPs by Redistributing Existing and Adding New Resources to All Localities The preferred option is to extend ISPs to provide specialist education environments in all secondary school catchment areas (that is, for the secondary school and at least 1 catchment primary school) following full consultation with school communities. Revenue costs to deliver this will be funded by redistributing existing resources as children and young people in existing ISPs move into their own catchment and allocating budget from additional Scottish Government funding for ASN. This will support the full cost of staff teams based upon nationally agreed staff:pupil ratios. This approach offers several benefits: • Sustainable model: Once ISPs are established in almost all areas, there will be flexibility to adjust the number and type of placements in each provision to align with changing needs, including reducing the number of placements offered in a particular ISP if they are not required to meet need. Therefore, this option provides a sustainable model to meet the changing needs of children with ASN, recognising that assessment of the reasons for the recent increases needs time to inform future modelling. It ensures that resources are allocated efficiently and effectively over time to support all children and young people. • Phased implementation: The implementation will be delivered through three phases, with Phase 1 being delivered in 2025, Phase 2 in 2026 and Phase 3 by the end of 2028. This will ensure that there is sufficient capacity, budget and workforce development to support implementation. • Development of ISPs will include creating some classes in ISPs with low- stimulus environments for children able to access mainstream curricula but not a mainstream environment. This is identified as a current gap in provision. Page 130 of 138
Page 131
9 • Most children and young people requiring intensive level education will be able to access this within their secondary school catchment area, this will reduce the requirement for home to school transport and the related spend. Phase 1 • Primary School 1 - To identify a Perth City primary school in the Perth Academy catchment area with suitable capacity within the school building for an ISP. The request to progress to statutory consultation to create this additional primary ISP will be brought to the April 2025 Learning and Families Committee meeting. If agreed, the development of this ISP will require additional and redistribution of existing resources. To support children in the catchment who require this provision from August 2025, interim arrangements will be in place at the identified school until the consultation is concluded and a final decision made by Learning and Families Committee. • Primary School 2 – It is identified that an ISP is required at the primary level in the Kinross High School catchment area, however a review of school buildings has identified that neither Kinross nor Milnathort Primary Schools have capacity to support the introduction of a two-class ISP. Alternative options will be explored and brought forward as Phase 3. In the interim, children from this area assessed as requiring an ISP will primarily be allocated a space in the Errol ISP from August 2025 to enable children from the same area to remain together, however it will mean that these children will still need to travel outwith their local area to access the ISP. • Secondary Schools - Perth High School and Kinross High School have been identified as having suitable building capacity within their schools to support establishment of ISPs. The next step will be to initiate a formal consultation and following this, to bring finalised recommendations to Learning and Families Committee in due course. If agreed, the developments will require redistribution of existing resources and allocation of new Scottish Government funding for ASN to provide additional staff resources. To support young people in the catchment who require this provision from August 2025, interim arrangements will be in place at both schools until the consultation is concluded and a final decision being made by Learning and Families Committee. Phase 2 • Primary Schools – Identification of 2 primary schools that could progress to formal consultation following assessment of building capacity in the catchments of St John’s RC Academy and Community School of Auchterarder. The request to progress to consultation on the two primary school ISPs will be brought to Learning and Families Committee by November 2025. If agreed, the development of these ISPs will require redistribution of existing and the allocation of Scottish Government funding for ASN. • Temporary primary ISP class – Development of an additional class in an existing primary ISP to provide a temporary class for children in the Bertha Park High School catchment to allow for the future possible development within any new primary School in this catchment. Page 131 of 138
Page 132
10 • Secondary Schools– Community School of Auchterarder (Secondary) and St John’s RC Academy have been identified as having sufficient capacity within their buildings to support establishment of ISPs. This will involve formal consultation and if agreed, the developments will require the allocation of Scottish Government funding for ASN and redistribution of existing resources. Phase 3 • A best-value option to provide an ISP to meet the needs of primary-aged children with complex and multiple needs in the Kinross High School catchment area will be identified and progressed. This may require more significant building work. • This phase will address any remaining gaps in provision and ensure that all school catchment areas have adequate support for students with ASN. 7. Summary of Analysis of Preferred Option Option 3 is the preferred option and would be implemented over three phases: phase 1: Jan 2025 to December 2025, phase 2: January 2026 to December 2026 and phase 3: January 2027 to December 2028. The phased implementation approach ensures that the pace of delivery can be monitored closely and adjusted as required to be responsive to local contexts. It also allows for a well-considered approach to the efficient allocation of resources. Implementation of this option will provide a comprehensive and sustainable solution that addresses both current and future levels of complex and multiple ASN. It will enable children with complex ASN to access appropriate education closer to home, fostering stronger community ties and will reduce the stress of long commutes. It will provide a specialist learning environment supported by highly skilled staff. This option meets short and long-term needs and provides a sustainable model to meet the needs of the current demographic profile of children with ASN. The establishment of ISPs in all geographic secondary school catchment areas will reduce transport costs and emissions, enable class sizes in ISPs to have child-to- staff ratios in line with national recommendations, and create space in existing ISPs to provide low-stimulus environments to meet the emerging needs of neurodiverse children and young people. When built, the new primary school at Bertha Park will provide the Primary School ISP for this catchment as this has been included in planning from the outset. Due to the small school roll of Pitlochry High School, lack of suitable space in the school and close links of the school with Breadalbane Academy as part of the Highland Local Management Group (LMG), it is not considered cost effective at this time to establish primary or secondary ISPs in the school catchment. However, it is recognised there may be benefits from developing the well-established nurturing and inclusive environment that already delivers enhanced-level support in the school. 8. Community Engagement Page 132 of 138
Page 133
11 A statutory consultation exercise will be undertaken to provide an opportunity for the existing community of the schools involved in each phase, and families with children who would be eligible to attend the school in the next two years, to share their views on the development of the proposed ISPs in their schools. A proposal document will be published and available to various stakeholders, including parents, pupils, staff, community councils, elected members, and relevant officials. Public meetings will be held to explain the proposals and gather feedback. The Council aims to build trust with parents and carers by delivering on its promises to provide equitable access to education, reliable transport options, and necessary support services. This engagement will ensure transparency and allow the community to voice their opinions and concerns. 9. Location Phase 1 The proposed new ISPs will be established in 3 school settings: • Perth High School • Kinross High School • Perth Academy primary catchment – To be confirmed following assessment of building capacity to identify one primary school in the Perth Academy catchment area with suitable space for an ISP Perth High School is situated in Oakbank Road, Perth, PH1 1HB. A new school building will be operational from August 2025 and will offer secondary education for both girls and boys from S1 to S6, with capacity for 1600 pupils and current enrolment of 1487 pupils. The new Intensive Support Provision (ISP) will utilise specialised classrooms and areas tailored to meet the needs of children with ASN. Kinross High School is situated in Muirs, The Muirs, Kinross KY138FQ. The school offers secondary education for both girls and boys from S1 to S6, with capacity for 1286 pupils and current enrolment of 912 pupils. The new Intensive Support Provision (ISP) will utilise existing spaces in the school building, transforming them into specialised classrooms and areas tailored to meet the needs of children with ASN. Assessments of building capacity are being undertaken to identify a suitable Perth- City primary school in the catchment area of Perth Academy with sufficient physical space to include an ISP. The Perth Academy primary catchment includes 7 primary schools (Balbeggie, Collace, Goodlyburn, Guildtown, Letham, RDM (already has an ISP) and Viewlands). This work will be undertaken in January and February 2025 and a recommendation brought back to Learning and Families Committee in April 2025. In addition, an additional class will be established in the existing ISP at Errol Primary School to accommodate primary age children from the Kinross High School Page 133 of 138
Page 134
12 catchment area who have been assessed to require an ISP placement. This class will be a temporary addition until a primary ISP can be established in a primary school in this catchment area. Phase 2 Community School of Auchterarder is situated at New School Lane, Auchterarder, PH3 1BL. The school offers Early Learning and Childcare for children aged 2 – 5 years old and education for both girls and boys from P1 to S 6, with capacity for 1313 pupils and current enrolment of 979 pupils. The new Intensive Support Provision (ISP) for children and young people from P1 to S6 will utilise existing spaces, transforming them into specialised classrooms and areas tailored to meet the needs of children with ASN. The associated primary schools are Aberuthven, Blackford, Community School of Auchterarder and Dunning primary Schools. St John’s RC Academy is a Roman Catholic denominational school situated in the North Inch Community Campus, Gowans Terrace, Perth, PH1 5BF. The school offers Early Learning and Childcare for children aged 2 – 5 years old and education for both girls and boys from P1 to S6, with capacity for 1256 pupils and current enrolment of 1056 pupils. The new Intensive Support Provision (ISP) for children and young people from P1 to S6 will utilise existing spaces, transforming them into specialised classrooms and areas tailored to meet the needs of children with ASN. The associated primary schools are Our Lady's, St Dominic's, St Stephen's and St John's RC Primary Schools. Phase 3 Bertha Park catchment area includes Auchtergaven, Dunbarney, Forgandenny, Logiealmond, Methven, Pitcairn and Ruthvenfield Primary Schools. In addition, there are plans approved to build a new primary School in Bertha Park. It has already been agreed that an ISP will be included in this new primary School. Kinross High School catchment area includes Arngask, Cleish, Fossoway, Milnathort, Portmoak and Kinross Primary Schools. 10. Socio Economic Factors Agreement and implementation of Option 3 addresses socio-economic disparities by ensuring that almost all children and young people, regardless of their background and needs, have access to the education and support they need within their local community. Perth and Kinross Council is committed to addressing poverty. Families where someone has a disability are one of the groups of people at greatest risk of very deep poverty. (Briefing_Note_Poverty_Estimates_Perth_and_Kinross_2022_- _2023.pdf) Improving access to education in the child’s local community will support Page 134 of 138
Page 135
13 children in families experiencing poverty to have better outcomes in relation to both learning and wider life outcomes. Reduced travel distances for children accessing ISPs will also enable parents to have easier access to their child’s school so that they can have an active role in supporting their child’s learning. Currently, parents may need to travel up to 30 miles to attend a parent contact or planning meeting at their child’s school or to collect their child if they are ill. Establishing ISPs in locality areas reduces the cost of school related travel for parents and strengthens the connection between schools and their local communities, promoting inclusion and accessibility for all children and families. 11. The School within the Community The proposed ISPs will enhance the local communities by providing improved educational infrastructure and ensuring equitable access to services within local areas. They will foster greater parental involvement, making it easier for parents to participate in school activities and support their child's education, and community engagement and inclusion of children and young people with ASN. The presence of the ISPs will strengthen partnerships with local organisations, providing additional opportunities for children and young people and supporting the development of lifelong support systems. 12. Projected overall provision of a localised ISP model Implementing a localised ISP model over 3 phases, as proposed in Option 3, will increase overall capacity to meet the required specialist educational placements for children and young people with complex and multiple ASN in Perth and Kinross. This will increase the number of classes from 16 to 22 in primary provisions, and from 19 to 23 in secondary provisions. School catchment Primary ISP Secondary ISP Bertha Park Phase 3 - as part of new primary School build – 2 classes Existing ISP - 4 classes - expected to reduce to 2 classes Blairgowrie Existing ISP - 3 classes Existing ISP - 4 classes - expected to reduce to 3 classes Breadalbane Existing ISP - 1 class Existing ISP - 1 class Crieff Existing ISP - 2 classes Existing ISP - 2 classes Kinross Phase 3 - 2 new classes Phase 1 – 1 new class with option to extend to 2 classes when required Perth Grammar Existing ISPs - 4 classes Existing ISP - 4 classes Perth High Existing ISPs - 5 classes Phase 1 – 2 new classes Perth Academy Existing ISP - 4 classes - 20 placements due to room capacity – reduce to 2 x 8 placements classes Existing ISP - 4 classes Phase 1 – additional ISP - 2 classes Page 135 of 138
Page 136
14 Community School of Auchterarder Phase 2 – 1 new class Phase 2 – 1 new class St John’s Phase 2 – 1 new class Phase 2 – 1 new class 13. Building Information/Suitability The proposed ISPs in Phase 1 and Phase 2 will be situated within existing school buildings and will comprise various accommodations, including ASN classrooms, nurture/lifeskills space, sensory/low-stimulus/breakout/quiet rooms, and dedicated outdoor play areas for the children and young people in placement. These facilities will be designed to provide appropriate environments for children with complex needs, ensuring they have access to the resources they need to thrive. The design will incorporate best practices and lessons from existing successful provisions, ensuring accessibility and inclusivity throughout. The allocation of rooms identified for the new ISPs will not negatively impact other children and young people in the schools concerned. 14. Financial Information and Impact This proposal focuses on maximising use of existing school buildings where possible to provide a wider education offer while also reducing the cost of school transport. The proposal also supports the wider strategic objectives of the Council and the needs of our communities by providing more localised education for children and young people with complex and multiple additional support needs. The revenue costs associated with implementation of Option 3 primarily relate to staffing. Teaching costs for the new ISPs will be met from within the current Education and Learning budgets by realignment of posts. The additional support staff costs for the initial phases will be funded from the Scottish Government funding for additional support needs. It is anticipated that the roll out of Phases 1 & 2 will reduce the need for independent school placements and it is proposed this reduction will fund staffing required for Phase 3. Summary ISP Proposal Phase 1 Phase 2 Phase 3 Total New ISP Settings 3 2 2 7 Additional classes 4 3 3 10 Realignment of teaching FTE from other areas of PKC 5.02 3.82 3.93 12.77 Additional PSA posts (no of posts) 6 3 3 12 Costs of additional PSA posts £180,370 £90,185 £87,533 £358,088 Additional costs due to Promoted post £49,329 £32,886 £16,443 £98,658 Total additional costs £229,699 £123,071 £103,976 £456,746 Capital construction work will be required to support the development of ISP environments that meet the needs of children and young people placed in these settings. Therefore, budget will be required to support adaptations of appropriate learning environments. Detailed costings to support completion of work required in Page 136 of 138
Page 137
15 Phase 1 are being developed and will be reported to a future Committee prior to the Learning and Families Committee being asked to make a final decision following statutory consultation. 15. Impact on Travel Arrangements The establishment of the additional ISPs will provide an opportunity for children and young people who are already in ISPs outwith their catchment areas to move to an ISP closer to their home. This will be taken forward on an individual basis with the agreement of families, recognising the importance of consistency for many of the children and young people involved. Transport arrangements for the newly established ISPs will be made in line with the current Perth and Kinross Council policy for home to school transport. Modelling of the distances children and young people will need to travel if Option 3 is implemented has demonstrated that the additional ISPs will reduce the need for some pupils to travel significant distances, lowering costs and reducing the environmental footprint of the Council. Any savings that are achieved through this will offset future inflationary pressures in the home to school transport budget. 16. Environmental Impact Reduced travel distances for children accessing ISPs will result in a lower environmental impact and reduced transportation costs, creating a more sustainable model of education delivery. This approach aligns with the Council's sustainability goals and fosters stronger community connections. By reducing the need for long- distance travel, the Council will also lower the environmental impact associated with commuting, contributing to a greener and more sustainable future. 17. Education Benefits Statements An Education Benefits Statement (EBS) will be prepared and included in the Statutory Consultation proposal paper for each school where a new ISP is proposed. The EBS will provide an analysis of impact of the ISP for children or young people that will attend the ISP and for all children or young people in the school. A separate EBS will be provided for each school as the benefits may differ in each school, however a summary of general benefits is set out below. It is intended that ISPs will be fully accessible and equipped with modern solutions to meet specific needs, ensuring the best learning opportunities for every pupil. They will include accommodation with dedicated spaces such as classrooms, a sensory room, a medical room, and outdoor play areas. Staff will have appropriate qualifications and expertise, working in partnership with various agencies like Educational Psychology, Speech and Language Therapy, and Occupational Therapy to meet each child's needs. Pupils will have Individualised Education Plans to ensure their needs are met with a differentiated curriculum. Page 137 of 138
Page 138
16 The provision will offer one-to-one and small group learning and include building skills for social and personal relationships. There will be access to subject teachers as appropriate to the age and stage of the children and young people to provide a full curriculum. Reduced travel will benefit pupils by reducing anxiety and improving readiness for learning. The proposal will not impact current teaching sets and will comply with accessibility standards. It aims to enhance the Local Authority’s capacity to support young people with severe and complex ASN within mainstream education. Children and young people will be supported to access school community events alongside their mainstream peers, providing opportunities for all of the children and young people to develop their understanding of and learn from each other. Page 138 of 138