Argyll and Bute Visitor Levy Update
Argyll and Bute Council · 26 November 2025
Back to Argyll and Bute Council — 26 November 2025 and its agenda
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ARGYLL AND BUTE COUNCIL COUNCIL DEVELOPMENT AND ECONOMIC GROWTH 26th NOVEMBER 2025 ARGYLL AND BUTE VISITOR LEVY UPDATE 1.0 INTRODUCTION 1.1 At the Council meeting on 24th September 2025 it was agreed to pause the introduction of a visitor levy scheme and this report provides an update to actions following that decision. 2.0 RECOMMENDATIONS 2.1 It is recommended that the Council – a. Note that the Council Leader has written to both the UK and Scottish Government and responses are awaited, b. Agrees to discharge the remit of the Short Life Working Group (elected members only) to enable engagement with and seek advice from key industry and stakeholder representatives across the Argyll and Bute visitor economy through the Shadow Visitor Levy Forum, and c. Agrees to expand the membership of the Shadow Visitor Levy Forum to include the Council Leader (Jim Lynch), Depute Leader (Ross Moreland) and Leader of the largest opposition group (Peter Wallace) to enable and promote greater transparency on the discussions and potential proposals on local exemptions with input and advice from Argyll and Bute visitor economy industry representatives and stakeholders who sit on forum. 3.0 DETAIL 3.1 At the Argyll and Bute Council meeting on 24th September 2025 it was agreed – • To pause the implementation of a Visitor Levy Scheme in Argyll and Bute in its current form, with an update to a full Council meeting to be called no later than the end of January 2026; • To ask the Leader of the Council to write to the Scottish Government to ask for clarity on the possible changes to the legislation, in particular with regards to a flat or tiered rate; and to ask that any possible changes take into account work already done by councils; • To request that the Leader of the Council writes also to the UK Government in relation to concerns around the VAT threshold in the context of a Visitor Levy;
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• To note that, should a Visitor Levy Scheme for Argyll and Bute be agreed, this will be on the basis that the Council will put in place arrangements to identify and engage with relevant stakeholders and partners via the Visitor Levy Forum on the potential use of funds raised; • To ask officers, in the interim, using the evidence collected in the consultation report, to give consideration to the possibility of local exemptions, including proposals for an exemption for residents of Argyll and Bute, paying particular attention to rural and island communities and the requirements for overnight stays in regards to island travel, medical appointments, and other essential purposes. 3.2 The Council Leader has since written to the Scottish Government to ask for clarity on the possible changes to the legislation, and to the UK Government in relation to concerns around the VAT threshold in the context of a Visitor Levy; and is awaiting responses. 3.3 Officers have started also exploring the potential for local exemptions. It is suggested that due consideration is given to discuss the issue of local exemptions through an expansion of the Argyll and Bute Shadow Visitor Levy Forum, which is attended by Argyll and Bute visitor economy industry representatives, and discharge the remit of the Visitor Levy (member only) Short Life Working Group. 3.4 The function of a visitor levy forum is advisory. Its purpose is to provide advice to the local authority in a number of areas relating to the operation of a visitor levy scheme. It is intended that a visitor levy 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 visitor levy scheme has been introduced. 3.5 The Visitor Levy Guidance notes that a local authority that decides to deliver a visitor levy scheme requires to establish a visitor levy forum no later than six months after the date of the decision to introduce a visitor levy. The visitor levy forum needs to be in place for the duration of a visitor levy scheme and must meet not less than two times per calendar year. 3.6 It was agreed by Argyll and Bute Council that a Shadow Visitor Levy Forum was formed in advance of the requirement to establish a visitor levy forum if a visitor levy scheme was introduced to provide advice as follows: • develop and provide commentary on the proposed Argyll and Bute Visitor Levy Scheme; • commentary on all documents for inclusion in the public consultation pack scheduled to be implemented for 12 weeks post the Argyll and Bute Council meeting on 20th December 2024; and • advise on a communication and engagement programme with key businesses, communities and organisations related to the visitor economy going forward. The terms of reference for the Shadow Visitor Levy Forum are outlined in Appendix 1.
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3.7 As noted in the Argyll and Bute Council Visitor Levy Consultation Report, the mistrust expressed in the consultation process, in the independent analysis, and in the effective delivery of a visitor levy scheme was a key concern. On that basis, it seems prudent and appropriate to continue to liaise with industry and stakeholders within the visitor economy, despite the current pause in any introduction of a visitor levy scheme. 3.8 It is recommended that the current elected members only Visitor Levy Short Life Working Group is discharged, and that the membership of the Shadow Visitor Levy Forum is expanded to include the Council Leader (Jim Lynch), Depute Leader (Ross Moreland) and Leader of the largest opposition group (Peter Wallace). Elected members can sit on a visitor levy forum as long as members do not make up a majority of the forum, as stipulated in the Visitor Levy Guidance. It is suggested that the structure and operation of the Shadow Visitor Levy Forum continues to adhere to the guidance. 4.0 CONCLUSION 4.1 This report updates Council on the actions following the decision of Council on 24th September 2025 in relation to the Visitor Levy. 4.2 The Council Leader has since written to the Scottish Government to ask for clarity on the possible changes to the legislation, and to the UK Government in relation to concerns around the VAT threshold in the context of a Visitor Levy; and is awaiting responses. 4.3 It is suggested that due consideration is given to discuss the issue of local exemptions through an expansion of the Argyll and Bute Shadow Visitor Levy Forum, which is attended by Argyll and Bute visitor economy industry representatives, and discharge the remit of the Visitor Levy (member only) Short Life Working Group. 5.0 IMPLICATIONS 5.1 Policy – Shadow Visitor Levy Forum aligns to Visitor Levy Guidance. 5.2 Financial – none. 5.3 Legal – to put in place strong governance processes for ongoing engagement with the Argyll and Bute industry operating within the Argyll and Bute visitor economy. 5.4 HR – None 5.5 Customer Service – none. 5.6 Risk – none. 5.7 Climate Change – none.
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5.8 Fairer Scotland Duty - the Fairer Scotland Duty, Part 1 of the Equality Act 2010, came into force in April 2018. The duty places a legal responsibility on particular public bodies in Scotland, such as Argyll and Bute Council, to pay due regard to (actively consider) how they can reduce inequalities of outcome, caused by socio- economic disadvantage, when making strategic decisions and how this has been implemented. 5.9 Equalities (protected characteristics) - all activities will comply with all Equal Opportunities policies and obligations. 5.10 Consumer Duty - all activities will comply with the Council’s Consumer Duty. 5.11 Island Communities – as noted in the action from the Argyll and Bute Council meeting on the 24th September 2025, the Shadow Visitor Levy Forum discussions will need to ensure any local exemption proposals are “paying particular attention to rural and island communities and the requirements for overnight stays in regards to island travel, medical appointments, and other essential purposes.” 5.12 Children’s Rights and Wellbeing – none. Kirsty Flanagan, Executive Director responsible for Visitor Levy Proposals Council Leader: Councillor Jim Lynch 3rd November 2025 For further information contact: Ishabel Bremner, Economic Growth Manager Tel: 01546 604375 and e-mail: ishabel.bremner@argyll-bute.gov.uk
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Appendix 1 Shadow Visitor Levy Forum Terms of Reference Purpose As set out in the Visitor Levy (Scotland) Act 2024, the purpose of the Visitor Levy (VL) Forum is to provide advice to the local authority in a number of areas relating to the operation of a VL scheme. To assist with early engagement on the proposed Argyll and Bute VL Scheme, a Shadow VL Forum has been created. A wider VL Forum will be established no later than six months after the date of the decision by Argyll and Bute Council to introduce a VL scheme; post the formal 12-week consultation period. Terms The Terms of Reference are effective from the inaugural meeting of the Shadow VL Forum on 7th October 2024 and will be ongoing until terminated by agreement between the Shadow VL Forum members. Membership It is agreed that the membership of the Shadow VL Forum will include representatives s from Argyll and the Isles Tourism Co-operative; Argyll and the Isles, VisitScotland; Highlands and Islands Enterprise (Argyll and the Islands focus); and Loch Lomond & the Trossachs National Park Authority. The group will be chaired and supported by officers from Argyll and Bute Council’s Development and Economic Growth service. Role of the Group The function of the Shadow VL Forum is advisory. The Shadow VL Forum will provide advice as follows: • developing and providing commentary on the proposed Argyll and Bute VL Scheme; • commentary on all documents for inclusion in the public consultation pack scheduled to be implemented for 12 weeks post the Argyll and Bute Council meeting on 20th December 2024; and • advising on a communication and engagement programme with key businesses, communities and organisations related to the visitor economy going forward. Argyll and Bute Council will establish its own decision-making process in relation to areas the Shadow VL Forum has provided advice on. Meetings and Reporting A series of Shadow VL Forum meetings will be agreed at the inaugural meeting on Monday, 7th October 2024.