Shetland Times Column 17th January 2025

17 Jan 2025

Local councils are struggling.

Hit by rising energy costs, deserved workers’ pay increases and a sluggish economy nationally, local council budgets are stretched. The option of raising council tax comes with its own challenges for decision-makers as households and businesses also battle with the cost of living.

Shetland Islands Council provides important services to residents from education, schools and libraries to adult social care and transport across the isles in buses, planes and ferries. Doing more with less is not sustainable in the long term and my party will continue to press for a better package of local government funding in the Scottish Government’s upcoming budget.

The visitor levy was designed as an option open to local councils to address the impact and generate more funds for investing in tourism-related facilities. At the beginning of last year, I spoke in the Scottish Parliament on the need for fairness in the proposed visitor levy bill and suggested that it should include charging visiting passengers from cruise ships. The bill passed without such a provision.

Councils are now at the stage of deciding whether or not to implement such a levy in their areas. I have already responded to Edinburgh City Council’s consultation on their proposals as it does not recognise those who may stay in the city for healthcare reasons.

For those travelling for medical purposes there has not yet been any indication of an exemption. While this would have little impact on those living in the central belt, many in Shetland will have experience of travelling to Mainland Scotland for medical appointments and the logistics of finding accommodation to cover one night or more. I am of the view that someone travelling for an appointment, and patient escorts, should not be charged the visitor levy. This prospect is perhaps an oversight in the Scottish Government’s original thinking.

I have written to the relevant Minister several times outlining these concerns but the responses have not engaged with the specific questions put to him. Rather, I have been directed back to the councils as those who will be responsible for the design of their local visitor levy. I intend to respond to the local consultations in Aberdeen and Glasgow to highlight the issue once they ask for public views. Shetlanders should not be at a disadvantage because they require healthcare and are unable to receive treatment nearer to home.

I would hope that this loophole can be closed before it has an impact on island patients. It is disappointing though that the Scottish Government is not willing to address it nationally.

The visitor levy is also not a silver bullet for local government funding. Only time will tell how successful each model will be across each local authority that choose to establish the levy. 

Councils need the resources to empower local communities. Ensuring residents have good quality services and support should be the goal of local government.

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