PASC UK’s Post

We are pressing for pause, to allow small businesses to transition, there is insufficient time to do this by April, it’s complex. And to grant some further concessions to make it less punitive to extract businesses from the FHL regime. The cumulative impact of regulatory interventions is having a devastating impact on the self-catering sector. We urge both the UK and Scottish Governments for caution. Association of Scotland's Self-Caterers

Referring to the UK Budget, Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, said:   “The abolition of the furnished holiday lettings (FHL) regime by the UK Government is the last thing the beleaguered and hard-pressed Scottish self-catering sector needs at the present time.   “In recent years, our sector has been hit by the Scottish Government’s onerous and burdensome short-term let licensing and planning regulations so the UK Chancellor’s Budget announcement on FHL spells yet more dispiriting news for a crucial component part of the Scottish tourism industry.   “Self-catering businesses should not be seen merely as a quick revenue source by the UK Government, but instead as a vital, valued and integral part of our vibrant tourist market. The sector provides huge economic benefits for local economies and local communities and must be supported by government rather than being used as a convenient scapegoat for wider failures in housing policy.   The ASSC maintains that the UK Government would be much better placed easing the regulatory burden on long-term tenancies as opposed to penalising the holiday let sector. Rather than scapegoating and gaslighting, policymakers need to take a proactive and holistic approach to housing challenges, not simplistic interventions which will simply hit small businesses for no material benefit.” https://lnkd.in/dvBzAY-R Association of Scotland's Self-Caterers The Scottish Tourism Alliance (STA) Marc Crothall MBE Victoria Brooks Brian Wright David Smythe Angela Stott FCCA Scott Greig

Today we have sent in a letter the Treasury Minister with a formal request to provide an Economic Impact Assessment of the impact of the proposed abolition of FHL Allowances in the Finance Bill in the forthcoming Budget. The letter is alphabetically signed by 18 leading trade associations reflecting the real worry that the abolition will do serious damage, which will be disproportionally damaging in rural and coastal areas, creating a huge impact particularly on pubs and small visitor attractions. Our sector is the bed stock in these areas that supports these small hospitality businesses as they support ours, as we all strive to maintain an all-year-round visitor economy. The wider rural and coastal visitor economy is more fragile than ever, as anyone who has visited can see for themselves. Too many MPs see how vibrant London and some cities are and think that is a national picture. It simply is not. We will now press for another meeting with Treasury on this and know that the associations whose Members are also affected will all be doing the same. Our push back remains to try and achieve our policy of pause. It is happening too quickly for small businesses to make the change by April next year, and some more concessions to make it less punitive to exit FHL and enter a new tax regime. These are not unreasonable requests. We will keep you updated as to progress. Huge thanks to all those associations below who have signed this. ASAP - The Association of Serviced Apartment Providers Association of Scotland's Self-Caterers Bed & Breakfast Association British Holiday & Home Parks Association British Destinations CLA Countryside Alliance Historic Houses NFU (National Farmers' Union) PASC UK The Scottish Tourism Alliance (STA) STAA - the Short Term Accommodation Association SW Tourism Alliance UKHospitality UKHospitality Cymru UKinbound Wales Tourism Alliance

The STAA hits back at the latest attack on tourism. The budget on Wednesday saw tourism being used as a political football yet again with the abolition of Furnished Holiday Letting Tax (FHL). Coming days after the announcement on planning in England and with the backdrop of our industry being scapegoated for a lack of house building across all the home nations. In todays The Telegraph our Chief Executive, Andrew Fenner, said in response to the news that FHL would be cut, that while it would take some time for prices to rise, increases and even closures [of small tourism businesses]were “inevitable”. He said: “They [short-term let owners] are small businesses. They don’t have the capacity, as large hotels do, to absorb these constant increases in costs. This is just another thing that is going to hit them.” Andy added, “The housing crisis is caused by a lack of houses. Yet the government even abandoned its own house building targets! The lack of homes for people to live in is because we don’t have enough homes. The answer is to build more. Not to scape goat a successful part of UK business.” We are calling on the government to work with us to boost UK tourism not undermine it. We want to work with the government to support the thousands of jobs in our rural areas, towns and cities that rely on tourism. #Responsible #Sustainable #Tourism VisitBritain , Awaze, Sykes Holiday Cottages , Travel Chapter , Host & Stay , Laura Smith , Ben Edgar-Spier , Abode Worldwide , Department for Culture, Media and Sport , Thangam Debbonaire MP , Simon Jupp MP https://lnkd.in/eXi5ByHZ

Today, MSPs will vote on whether to allow councils to introduce a so-called “tourist tax”. This would see everyone (not just visitors) charged extra for overnight accommodation. There are so many unanswered questions on this which needs proper discussion. Capped %, capped £ or a complete free for all councils to make accommodation providers pay whatever charge they decide? Who decides where it will be spent and on what? It can NOT be allowed to be used to plug any funding gaps in local councils It’s also more labour burden on an already highly regulated burdened sector, and most certainly, an accountancy labour intensive pain in the backside! Let’s be very clear: Rushed policy is bad policy. The Scottish Hospitality Group

🏙️ **Proposing an Elegant Solution for Auckland's Hospitality Industry** 🍺 As we navigate the evolving landscape of tourism and hospitality in Auckland, it’s clear that inventive strategies are crucial to revitalizing our sector. One significant solution I believe warrants serious consideration is the **introduction of a targeted bed tax** collected from visitors. Rather than spreading our resources thin across the rest of the country, focusing this initiative specifically on Auckland could yield significant benefits. By reinvesting these funds into high-quality events and experiences tailored for tourists, we not only enhance the allure of Auckland as a vibrant city but also drive increased foot traffic to local businesses. Imagine Auckland as a premier destination for cultural festivals, culinary showcases, and entertainment events—all funded by the very visitors who contribute to Aucklands vibrant hospitality scene. #Hospitality #Tourism #Auckland #EventManagement #SustainableGrowth

Yesterdays Spring Budget was really something... It's fair to say that the property sector took a bit of a beating. The decision to abolish both Multiple Dwellings Relief (MDR) and the Furnished Holiday Let (FHL) regime has caused concern within the industry. It will be interesting to see how these changes unfold, particularly regarding MDR. Many large-scale developments will have already incorporated MDR into their budgets, but those yet to exchange or complete transactions before the 1st of June may face challenges. Regarding the FHL regime, the impact on the Scottish tourism market could be substantial and is likely to have a ripple effect on local businesses in rural areas. Given Scotland's tourism landscape, which typically doesn't revolve around 5-star all-inclusive resorts and sunbathing, the consequences could be significant. #SpringBudget2024 #MDR #FHL #Property #Tourism #Tax

Unchanged Scottish Budget Abandons Hospitality Businesses The Scottish Budget for 2024-25 was passed unchanged at Holyrood yesterday afternoon, leading to fierce criticism from various industry bodies. Despite opposition parties voting against it, the SNP and Green majority in parliament meant the Budget Bill was passed by 68 votes to 55, with one abstention. Leon Thompson, Executive Director of UKHospitality Scotland, said: “The Scottish Budget passing, unchanged, is the clearest sign yet that the Scottish Government has decided to abandon its self-proclaimed reset with business. “Instead, it is continuing on the same worn path of warm words and no action. “Businesses up and down the country, across hospitality, leisure and tourism, have put forward the strongest possible evidence that the lack of business rates support is stifling growth, deterring investment, reducing trading capacity and, ultimately, forcing businesses to close. “With our sector being so integral to Scotland’s culture and offering on the world stage, using the additional funds resulting from 75% rates relief in England to put them on an equal footing was a no-brainer. Instead, for the second year in a row, our businesses in Scotland have been left at a significant competitive disadvantage. “If the Scottish Government wants to regain any semblance of trust from the sector, it now needs to make good on its publicly declared commitment to reform business rates for hospitality. “The unjust and unfair system in operation is in urgent need of reform to deliver a system that enables hospitality to invest and grow. This is now more urgent than ever. This must be the priority of the Scottish Government’s New Deal for Business.” Read More:

City of Edinburgh Council must tread carefully with these plans. Alongside the upcoming consultation, we would expect a full economic impact assessment to accompany the proposals.   It is not just operators or overseas visitors who will be impacted but ordinary Scots choosing to visit Edinburgh will be hit in the pocket too. The introduction of this levy runs the risk of damaging the competitiveness of our tourism market and price sensitive consumers may switch to cheaper destinations elsewhere in the UK or abroad. After being saddled with expensive and onerous short-term let regulations, the last thing small businesses need is an additional administrative burden through a visitor levy. The accumulative regulatory impact could cripple businesses at a time when recovery is precarious and we should be supporting them for a sustainable future.   The early signs are far from encouraging as the Council has almost doubled its estimated running costs and increased its set-up budget by a whopping 260%. It is also very concerning an even higher levy has been proposed than the 5% in the draft scheme and we would urge extreme caution against setting the levy at a level that could tip the balance towards this scheme having a detrimental impact to Edinburgh’s reputation as a leading destination. https://lnkd.in/ewP_cGzr

The STAA raises alarm on the recent tax changes. In response to recent tax adjustments impacting the tourism sector, our CEO Andrew Fenner warned of dire consequences for furnished holiday lets (FHL) businesses. He highlighted the potential closure of numerous small enterprises across the UK, urging collaboration between industry and government to support tourism jobs. In his statement featured on LANDLORD TODAY and ShortTermRentalz, Andy said, "Now that the dust has settled on the announcement, it’s no exaggeration to say that there is real fear out there." He continued, "Some of these businesses will be single properties, others portfolios that support dozens of jobs. Many of them will be small businesses that have been built up over decades." Andy underscored the threat to the holiday let industry, stating: “What has been proposed will tear up a playing field that has been largely responsible for turning the holiday let industry into one of UK tourism’s crown jewels. If we move the goalposts, many of these businesses could be rendered unviable overnight.” We are urging the government to collaborate with us in bolstering UK tourism, rather than impeding its growth. See the links for Andy Fenner's comments: Landlord Today ⬇ https://lnkd.in/eC-Cr3mH Short Term Rentalz ⬇ https://lnkd.in/eRV-6zTe #Tourism #Responsible VisitBritain, Awaze, Sykes Holiday Cottages, Travel Chapter , Host & Stay, Laura Smith, Ben Edgar-Spier , Abode Worldwide , Department for Culture, Media and Sport