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City tax poses risk to businesses, reveals FSB research

Research conducted by FSB reveals that Edinburgh businesses are firmly opposed to the City of Edinburgh Council’s plans to introduce a tourism tax to the city. 

A survey of city businesses has shown that the vast majority oppose the introduction of such a tax (76 per cent) and believe that it would have a negative impact on the local economy (73 per cent).

Janet Torley, FSB Area Leader for the East of Scotland, said: “This is a wake-up call for the City of Edinburgh Council, signalling that its plans to introduce a tourism tax in the city are unwanted and potentially damaging.

“Despite the caution which the Scottish Government has urged over this tax, the City Council has pressed ahead with a ‘business case’ for its introduction.  

“Edinburgh’s success as a magnet for international tourists is vital to the economic health of visitor economies right across the country,” she added. “If we tax tourists out of Edinburgh, then we risk taxing them out of Scotland.”

Visitors spend £1.46 billion each year in Edinburgh, supporting around 34,800 jobs.