Edinburgh councillors have voted against postponing the start of advance collection for the city’s visitor levy, setting up a potential legal clash with national hospitality groups.
Operators will still be expected to begin taking the levy on future bookings from October, ahead of the scheme going live for guests in July 2026. Trade bodies argued the guidance from the council and Scottish Government is too unclear to implement now and urged a delay.
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Finance and Resources Committee convener Cllr Mandy Watt said the levy has broad public backing and that the council’s legal team had “scrutinised” the position, adding that further delay would “cause more confusion” for businesses. Officers told members firms have had nine months to prepare since the timetable was set on 24 January and stressed enforcement would be “reasonable”, with power to waive penalties where good-faith efforts are shown.
Chief executive Paul Lawrence noted any national changes to visitor-levy rules would come back to councillors, reiterating COSLA’s view that local authorities need flexibility to reflect local economies. Conservative councillors, led by Cllr Iain Whyte, warned the decision risks judicial review, citing previous costly legal defeats for the council.
The rejection means hotels and other accommodation providers must press ahead with systems to capture the levy for forward bookings from next month, while industry groups weigh their next steps.
