Highland Council pauses plans for 'tourist tax'

Highland Council has put the introduction of a visitor levy on hold after the Scottish government announced it is planning to give local authorities greater flexibility on the issue.

The authority consulted on a 5% "tourist tax" on holiday accommodation which it estimated could generate at least £10m-a-year for the region.

Officials said accommodation providers had raised "considerable" concerns about a percentage-based tax.

Councillors have unanimously backed a recommendation that the council should wait for more details on government planned powers for either a single flat rate or a range of fixed amounts for different purposes or areas, external.

The new powers could be introduced next year.

Under the current rules, councils can add a charge to overnight accommodation such as hotels, B&Bs and holiday lets.

Accommodation providers would be responsible for collecting the levy from visitors.

Highland Council analysed more than 4,000 responses to its consultation, which closed in March.

Cairngorm, Caithness, Lochaber and Inverness chambers of commerce have separately raised concerns, saying the extra cost could put visitors off coming to the Highlands.

The Association of Scotland's Self-Caterers said delaying the levy was a "sensible and constructive" step.

But tenant's union, Living Rent, has criticised the local authority's decision.

It said the money raised could have gone towards vital services that supported communities, and helped to tackle homelessness.