Tourism tax suggestion to help North Ayrshire Council

Councillor Alan Hill, of the ruling SNP minority administration, made the suggestion as one possible option that could be looked at going forward.

He also warned that the council were looking at making further major cuts across the board next year in what looks like a "very difficult council budget".

Cllr Hill said that "times are hard" and it looked like unspecified cuts which were dismissed by North Ayrshire Council during budget talks in the past year would be back on the table.

Cllr Alan Hill has warned of severe council cuts with a number of unpalatable choices but could a tourism tax be the solution? (Image: North Ayrshire Council)

Cllr Hill told the meeting that there would need to be "tens of millions of pounds" worth of savings which would not be palatable.

This year, there have already been major concerns over school library provision, bedding plants in Largs town centre and along the prom, and Christmas lighting cuts.

He said: "Next year's cuts are going to be worse unless something changes down south and cascades upwards but if anything that doesn't look like happening and it could be worse."

Community councillor Frank Alexander alluded to Cunninghame North MSP Kenneth Gibson's suggestion that North Ayrshire Council should be looking towards imposing the full council tax increase on second homes in the area.

Millport second homes help keep the island economy going throughout the year, Cllr Hill said at meeting (Image: Eric Marshall)

However, Cllr Hill pointed out that it was a complex matter and that the Isle of Cumbrae is very reliant on second home owners keeping businesses going throughout the year.

Cllr Hill said: "Both Arran and Cumbrae are very different and I am quite supportive of charging second home owners in Arran as people can't afford houses in Arran and are getting priced out.

"However second homes in Millport help keep the businesses going and it is the unintended consequences of bringing in blanket policies.

"We have to be careful about and need to be aware of the impact of such changes on individual communities, with the bulk of second homes being based on both islands."

Cllr Hill suggested that a tourism tax could be one possibility to help boost council coffers and offset cuts going forward.

He said: "Most Highlands and Islands council areas already implement it. The onus is on the owner of the accommodation to collect the moneys and depending on the size of the B&B and the general infrastructure, the monies would have to be gathered.

"How do they collect it and pass it on, that would all have to be worked out."

(Image: Ian Rutherford/Largs News Camera Club)

Cllr Hill pointed out that another issue would be that if a tax was imposed, how would the resultant money be spent as the businesses who collect it would expect the monies to be spent on boosting tourism facilities.

He added that it would perhaps be better if national government announced a policy across the board rather than local councils picking different levies.