Timeline Update: Argyll and Bute Council Visitor Levy
Argyll and Bute Council · 21 November 2024
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ARGYLL AND BUTE COUNCIL COUNCIL DEVELOPMENT & ECONOMIC GROWTH 21st NOVEMBER 2024 TIMELINE UPDATE: ARGYLL AND BUTE COUNCIL VISITOR LEVY 1.0 INTRODUCTION 1.1 The purpose of this paper is to provide members of Argyll and Bute Council with an update on the pre-consultation preparatory work for the draft Argyll and Bute Council Visitor Levy (VL) Scheme and to seek approval for the draft Argyll and Bute Council VL Scheme and all associated paperwork to go out to a 12- week public consultation period to be discussed at a Special Council meeting on 20th December, rather than at the full council meeting on 21st November 2024. 1.2 The formal VL Guidance for local authorities was published in the public domain on 4th October 2024. With reference to the guidance document, detail statutory and non-statutory activity already undertaken by elected members, council officers and members of the Shadow VL Forum, complete with a revised timescale of ongoing preparatory consultation and engagement work, is outlined in Table 1 in the report. 1.3 The extended timescale will allow elected members on the VL Short Life Working Group (SLWG), with input from council officers on the VL Officers’ Working Group and members of the Shadow VL Forum, to conclude the pre- consultation activity and use the feedback to shape the draft Argyll and Bute Council VL Scheme as appropriate for the 20th December 2024 meeting. 2.0 RECOMMENDATIONS 2.1 Members are asked to: • Note the content of this paper. • Endorse the requirement for the draft Argyll and Bute Council VL Scheme and associated papers to be considered to go out to a 12-week public consultation period in January to March 2025 at a Special Council meeting on 20th December 2024 rather than on 21st November 2024. . 3.0 DETAIL 3.1 The main focus of this report is to seek more time to conclude the pre- consultation preparatory work to develop a draft Argyll and Bute Council VL Scheme, with associated paperwork, for consideration at a Special Council meeting on Friday, 20th December 2024. The preparatory activity that has been undertaken over recent weeks, particularly once in receipt of the VL Guidance is
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depicted in Table 1 of this report. This is an updated version of the Table 1 outlined in the Special Council paper on 15th August 2024. 3.2 Given that the formal VL Guidance has been published, one material change is that the formal consultation period has been amended to the 12-week recommended timescale. It is important to align to the key requirements within the VL Guidance, particularly those noted as statutory, to avoid the possibility of having to restart the 18-month implementation period. 3.3 As noted in Table 1, the pre-consultation survey closed on Monday, 28th October, with 1,254 responses received. These responses will help to shape the draft Argyll and Bute Council VL Scheme that will be issued for formal consultation in January 2025, subject to council approval to this public consultation in December 2024. 3.4 The feedback from the six VL stakeholder consultation sessions organised by members of the Shadow VL Forum (Argyll and the Isles Tourism Co-operative and VisitScotland) on 23rd and 30th (x2) October and 6th. 7th and 14th November 2024 will also shape the development of the VL Scheme, as appropriate. 3.5 Argyll and Bute Council officers are working with professors from the University of Edinburgh Business School to look at forecasting the potential level of Visitor Levy income using a working rate figure of 5%. They worked with the City of Edinburgh Council on their forecasts. The data available regarding accommodation providers, their bed spaces and occupation rates is limited but officers are confident robust estimates will be ready for inclusion in the draft VL Scheme to go out to public consultation in January 2025, subject to council approval to this public consultation in December 2024. 3.6 The exact mechanism for billing and collecting the levy is still under discussion, including the development of a national platform through discussions with the Improvement Service. Argyll and Bute Council will ensure compliance, with penalties and debt recovery processes in place for non-compliance. Establishing a robust internal team for project management, enforcement, and data analysis will be necessary to support the implementation of the VL and any supporting systems. The proposed approach will be included in the 20th December paper pack and further work will be required during the formal 18- month implementation period.
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3.7 Table 1 below outlines an indicative timeline of activities for the establishing and implementing of a visitor levy including key council meetings. The text in italics mirrors that in the VL Guidance document and statutory requirements are highlighted in light blue. Table 1: Indicative Timeline of Activities to Establish a Visitor Levy (VL) aligned to the final VL Guidance Document Indicative Timeline Activity Statutory Requirement Pre-consultation work Ongoing Local authorities undertake work to understand their local visitor accommodation sector and set up necessary cross working between local authority departments. VL Officers’ Working Group (OWG) established on 2nd July 2024 and meets fortnightly. Members of the VL OWG are from key council functions, such as Economic Growth, Revenue and Benefits, Communication and Customer Services. Argyll and Bute Council officers are working with professors from the University of Edinburgh Business School to look at forecasting the potential level of VL income using a working levy rate of 5%. Ongoing Local authorities engage with stakeholders to develop visitor levy proposal. Shadow VL Forum is established: inaugural meeting on 7th October and a workshop session on 24th October. The next meeting is scheduled for 14th (p.m.) November 2024 Members of the Shadow VL Forum (AITC and VS) have set up six VL stakeholder consultation sessions on 23rd and 30th (x2) October and 6th. 7th and 14th (a.m.) November 2024. Pre-consultation survey issued on 11th October and closed on 28th October 2024, with 1,254 responses. Ongoing Discussion and debate at relevant local authority committees. VL SLWG (public meeting) established and chaired by the Council Leader. VL SLWG comprises of four members of the Administration and two members from the Opposition. First meeting, 1st October and the next scheduled for 30th October. Elected Members Seminar on the VL, attended by industry reps/Shadow Forum members from AITC and VS on 16th October. VL paper approved at a Special Council meeting on 15th August 2024. Ongoing Local authorities to prepare for consultation. Argyll and Bute Council web page went live on 9th October, https://www.argyll-bute.gov.uk/my-community/recreation- and-leisure/argyll-and-bute-visitor-levy complete with an inbox Abvl@argyll-bute.gov.uk for questions and a link to FAQs. An internal ChatBot is being developed to assist in fielding FAQs. Oct 2024 Objectives of VL Scheme to be developed. Aligned with the four strategic objectives/priorities within the Argyll and the Isles Strategic Tourism Partnership Strategy. The objectives have been tweaked slightly at the Shadow VL Forum meeting on 24th October to mirror the work already underway by the AISTP (five of which are Shadow VL Forum members) to prepare a revised strategy, spring 2025. √ Oct/Nov 2024 Impact studies to be carried out as required. Initial draft impact studies were considered at the VL SLWG meeting on 30th October 2024 and will be included in the paper pack for the Special Council meeting on Friday, 20th December 2024. √
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Table 1: Indicative Timeline of Visitor Levy (VL) Implementation Requirements (continued) Indicative Timeline Activity Statutory Requirement Nov/Dec 2024 Develop draft VL Scheme to be proposed. Preparation of the draft Argyll and Bute Council VL Scheme is ongoing with key input from the VL SLWG and will be informed by the results from the pre-consultation survey and VL stakeholder session discussions. A final draft VL Scheme will be included in the paper pack for a proposed Special Argyll and Bute Council meeting in December 2024. Nov/Dec 2024 Plans for use of net proceeds of the draft VL Scheme to be developed. Feedback sought in the pre-consultation survey and from the workshop session with the Shadow VL Forum (initial summary included in the draft VL. Input and discussions at the VL SLWG for what is included in the draft Argyll and Bute Council VL Scheme. Dec 2024 Agreement of draft VL Scheme by the local authority. Draft Argyll and Bute Council VL Scheme, and all supporting documentation, to be considered to go out to public consultation at a proposed Special Argyll and Bute Council on 20th December 2024 Formal Consultation January to March 2025 Public consultation on entire draft Argyll and Bute Council VL Scheme proposal (standard practice is 12 weeks) Timescale aligned to approval of a draft Argyll and Bute Council VL Scheme and associated documents to go out to public consultation at a proposed Special Argyll and Bute Council meeting on 20th December 2024. √ April 2025 Analyse and report findings on the local authority committee, including potential changes to the Argyll and Bute Council draft VL Scheme in light of the consultation. VL OWG analyse findings working with the VL SLWG and input from the Shadow VL Forum, as appropriate. Governance Requirements May/June 2025 Formal public announcement of decision to introduce a visitor levy or not (include start date in early 2027). Report to a Special Council meeting in May/June 2025 (dependent on response from the formal consultation to prepare a final Argyll and Bute Council VL Scheme for approval). √ June/July 2025 Minimum 18-month implementation report begins. Official start date for 18-month period to be confirmed nearer the time. √ June/July 2025 Scottish Ministers to be notified of decision to introduce a visitor levy across Argyll and Bute. √ June/July 2025 Establish a Visitor Levy Forum within six months of formal public announcement of a decision to introduce a VL Scheme. Augment current Shadow VL Forum to establish a the main VL Forum (advisory function) to be maintained for the duration of the scheme (meet at least two times per calendar year). √ Mid-July 2025 Argyll and Bute Council to advise businesses of their liability and prepared administration of Argyll and Bute Council VL Scheme.
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Table 1: Indicative Timeline of Visitor Levy (VL) Implementation Requirements (continued) Indicative Timeline Activity Statutory Requirement Governance Requirements Dec/Jan 2027 Implementation period expires. Early 2027 The Argyll and Bute Council VL Scheme comes into force, and the VL is collected and remitted to Argyll and Bute Council. √ Early 2028 Annual report on the Argyll and Bute Council VL Scheme An annual report will go to a full Argyll and Bute Council meeting, where the paper will be in the public domain. √ Source: VL Guidance and Officer Commentary
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4.0 CONCLUSION 4.1 The purpose of this paper is to provide members of Argyll and Bute Council with an update on the pre-consultation preparatory work for the draft Argyll and Bute Council VL Scheme and to seek approval for the draft Argyll and Bute Council VL Scheme and all associated paperwork to go out to a 12-week consultation period in January 2025 at a Special Council meeting on Friday, 20th December rather than Thursday, 21st November 2024. 5.0 IMPLICATIONS 5.1 Policy: the visitor levy has become law following Royal Assent of the Visitor Levy (Scotland) Bill and the VL Guidance has been published. 5.2 Financial: none. 5.3 Legal: none. 5.4 HR: the VL SLWG is supported by officers from the VL OWG and members of the Shadow VL Forum. 5.5 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. 5.5.1 Equalities: none. 5.5.2 Socio-economic Duty: none. 5.5.3 Islands: the same visitor levy scheme, with the same percentage rate charged for overnight accommodation, will cover the whole of Argyll and Bute, including accommodation providers on the islands. It is anticipated that this nominal rate will not disproportionately impact island accommodation providers any more than those based on the mainland throughout the region. 5.6 Climate Change: none. 5.7 Risk: there is a risk that the Argyll and Bute Council does not implement the visitor levy process in adherence to the Scottish Government timelines which could delay implementation. 5.8 Customer Service: there is a need to implement an efficient visitor levy process that is transparent and easy to use by our customers. 5.9 The Rights of the Child (UNCRC): none. Kirsty Flanagan, Executive Director responsible for Economic Growth Councillor Jim Lynch, Leader of Argyll and Bute Council
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7th November 2024 For further information contact: Fergus Murray, Head of Development and Economic Growth fergus.murray@argyll-bute.gov.uk Ishabel Bremner, Economic Growth Manager ishabel.bremner@argyll-bute.gov.uk