THE CITY of Edinburgh Council’s spending plans for the forthcoming tourist tax, which could free up £90m for investment over three years, faced questions at at a committee meeting yesterday.
Council officers have drawn up a detailed report on how to distribute funds for the soon-to-be operational visitor levy, which will see a 5% surcharge added on top of any overnight stays in the capital.
Infrastructure and city operations plans will see the highest amount of additional funding, with culture and housing also seeing significant boosts.
The Finance and Resources Committee scrutinised proposals yesterday and enquired about potentially reallocating some of the funds.
The council has around £90m in tourist tax revenue to play around with (C) Gary Campbell-Hall
Plans will, however, have to be analysed by two other committees before a special meeting later this month, where spending arrangements will be finalised.
Councillors from across the political spectrum thanked council officers for the “extraordinary amount of work” which has been poured into the tourist tax plans, which have been hailed as potentially transformative for the city.
Councillor Lewis Younie of the SNP asked Interim Service Director Elin Williamson if new proposals would be possible before the council makes a decision on funding on 12 February.
Although Williamson, who was instrumental in drawing up the report which detailed spending plans, said that new proposals could not be considered for even provisional approval on that date, funds could be set aside for future alternative use.
In terms of city infrastructure, Edinburgh plans to invest 55% of funds in a revamping and partial pedestrianisation of George Street, more litter bins and public toilets, and a Portobello Promenade masterplan.
In culture, heritage and events, they will invest 35% of available monies in a refurbishment of the Ross Bandstand, the Royal High School, and a project to reopen the Leith Theatre.
Councillor McKenzie, of the Scottish Greens, outlined his preference to see visitor levy revenues skimmed from other projects and placed in a “sustain” pot, which would assist the council in sustaining the council’s services during peak seasons.
The “sustain” funding pot, as it has been drawn up by officers and the tourist tax advisory body, would begin with a total of just over £5m, with potential to rise to £6m in coming years.
In response to Councillor McKenzie’s question, Williamson said: “The sustain element is one that has been hotly debated.
“Many councillors have asked that we try to secure additionality of this funding as well, so what we’ve tried to achieve is a balance where we do have additionality as well as addressing existing pressures on services which have been caused by additional pressures by the successful visitor economy that we have.
“While I’m sure that’s an argument that can be had, in terms of whether there are additional pressures that have been caused by visitors, it is a difficult balancing act.”
Richard Lloyd-Bithell, director of finance at Edinburgh Council, said that there may be scope to expand the additionality element of the visitor levy, and provide more funds for sustaining Edinburgh’s services.
He said: “there is certainly additional headroom for sustain should you wish to reallocate that.”
After visitor levy plans have been debated by the Culture and Communities Committee and the Housing, Homelessness, and Fair Work Committee before a final decision is made at a special meeting of the City of Edinburgh Council on 12 February.
Related