Edinburgh councillors fight to reclaim visitor levy VAT from the UK government to reinvest in the city.
The levy could bring in £50 million a year. VAT could take away about £8 million. A councillor wants the council to ask for a rebate. This money should stay local.
The UK government controls VAT decisions. Parliament already discussed the VAT issue. They could not change the VAT rule, though. A rebate would help a lot.
That £8 million is 20% of the total. Over time, it’s a huge sum. It could fund housing investments. The money could greatly benefit Edinburgh.
It shouldn’t become a UK Treasury bonus. It’s like taxing a tax, basically. Edinburgh’s visitor levy is unique in the UK. Most visitors pay 5% per night. This applies for up to five nights total.
£5 million yearly funds housing and tourism help. £2 million over three years aids local budgeting. Providers receive 2% for admin costs. The rest supports city operations (55%).
Culture gets 35%, and visitor care gets 10%. The levy starts in July 2026. Approval happened in January. A councillor criticized the complaint timing. He noted the SNP pushed the levy through parliament. He wondered why the VAT was a surprise.
Councillor Campbell stated the money should return to Edinburgh. Legislation changes are possible, she said. The UK government has the power to act. This would really benefit residents in Edinburgh.