LGA Governance


Agenda item

Agenda item

Tourism Levy

Minutes:

Rebecca Cox, Principal Policy Adviser, introduced the report on the tourism levy. Rebecca explained that the LGA line was to support local discretion in this area. She highlighted that the People & Places Board and City Regions Board had been undertaking work on this piece as well, and that there was the opportunity for the Culture, Tourism and Sport Board to take work on this forward in looking at how a levy could function in a local area. Rebecca proposed that this work be made up of two strands for Board members to discuss, these being: an engagement strategy; and an independent analysis of the implications for the introduction of greater fiscal freedom in this area. The report requested the Board agree the next steps.

 

In the discussion that followed, the following points were raised;

 

·         It was suggested that it would beneficial for the LGA to work closely with Edinburgh and Bath on their trial of a tourism levy and to reflect on learning from this trial.

·         Views were expressed that this work should be carried out at a time frame that allows the LGA to take into account the progress in both Edinburgh and Bath.

·         Members emphasised that one size will not fit all local authorities in applying the tourism levy, in particular where the differences between rural and city areas were concerned.

·         A view was expressed that flexibility for local authorities setting up a tourism levy would be crucial in finding a solution.

·         Queries were raised as to whether the money would be ring fenced to be used to support the local tourism industry and members emphasised that the money must be owned by local government..

·         In response to this query the Chairman explained that he understood this would be a hypothecated tax in which the money is spent where it is raised and that it will be spent on the local tourist industry.

·         The importance of flexibility of scale was raised.

·         Concerns were raised that introducing the tourism levy could pose challenges to local tourism economies.

·         It was raised that the tourism levy had been proven to be very unpopular with businesses in Cornwall.

·         It was suggested that liaising with the Tourism Alliance around the Tourism Levy would be helpful.

·         Members noted the importance of making sure the impact of seasonal visitors be properly managed and funded.

·         Members expressed a preference for a standalone tourism levy rather than using the BID model.

 

The Chairman summarised that it was the Board’s view that holding discussions with a range of council Leaders on this later in the year, as well as evidence gathering from tourism levy trials in both Edinburgh and Bath, would best inform the Culture, Tourism and Sport Board’s work on the tourism levy.

 

Decision

 

The proposed recommendations were agreed by the Culture, Tourism and Sport Board on the commissioning of further research into the Tourism Levy, supported by an effective engagement strategy. This was agreed with the amendment that the engagement strategy take a slower pace to allow time for the tourism levy trials in Bath and Edinburgh to progress, so the LGA are best placed to give a considered response.

 

Action

 

Officers to commission research and develop a full engagement strategy in line with the Culture, Tourism and Sport Board comments and decision.

 

Supporting documents: