TREASURY QUIZZED OVER HOLIDAY LETS DEBACLE
SNP Business and Enterprise spokesperson at Westminster Mike Weir MP has heavily criticised the UK Government after it emerged in the finer print of the Pre-Budget Report (PBR) that the Treasury is threatening the survival of small self-catering businesses across Scotland by refusing to classify operating such an enterprise as a trade.
The definition given in the UK Government's PBR means that those operating bed and breakfast businesses are classified as having a trade while those who run self-catering lets are classed as landlords.
Mr Weir has tabled a series of emergency questions to the Treasury in a bid to uncover why the UK Government is pursuing this action. He has also tabled an EDM in parliament. His actions are vigorously supported by Jim Mather, MSP for Argyll & Bute.
Mike Weir said:
"This is a huge disappointment for the tourism industry in Scotland.
6000 small holiday letting businesses across Scotland are a vital part of our rural economy. They cannot be allowed to suffer as a result of this technocratic stitch-up.
People who run self-catering lets are professionals offering a whole host of services from cleaning to providing information on local attractions. They must often conform to strict quality standards to gain VisitScotland ratings. To suggest that they operate the same service as residential landlords and are less skilled than people who also offer a simple meal is insulting and wrong."
Jim Mather stated
"The SNP Government at Holyrood has helped many self-catering operators with its small business bonus, only for the Treasury to pull the rug from under their feet with this sort of ill-considered proposal.
These proposed changes will put many businesses at risk and jeopardise the valuable local trade that holiday lets generate for pubs, restaurants, shops, newsagents and other local businesses - often in remote rural areas where jobs and customers are at a premium. This is a serious threat and one that informed sources would have identified.
With our tourist authorities putting their energies into improving the standard of welcome that visitors to Scotland experience in bright, welcoming, well-equipped and furnished accommodation, it is unthinkable that the Treasury appears prepared with this proposal to slam the door on those in the front line.
This is "the nightmare before Christmas" for many small businesses and the Treasury has to seriously re-consider the consequences of this. I will certainly be taking the matter forward with my colleagues and supporting the efforts of Mike Weir."