Yousaf acts supported by 88% majority to protect local economy and people from Airbnb tax and safety regulations avoidance

As with most issues, Scotland’s media has platformed the opposition party attempts to turn the serious matter of proper safety regulation and taxation of short-let, self-catering, businesses, based on internet-based booking, into another SNPbad narrative.

Note that ‘only two thirds have now applied?’ That’s gone up quite a bit since the early howls of complaint.

The facts are being ignored for political gain, they hope.

So, quickly, from the US Economic Policy Institute in 2019 on ‘internet based service firms’:

Economic policy discussions about IBSFs have become quite heated and are too often engaged at high levels of abstraction. To their proponents, IBSFs are using technological advances to bring needed innovation to stagnant sectors of the economy, increasing the quality of goods and services, and providing typical American families with more options for earning income; these features are often cited as reasons why IBSFs should be excused from the rules and regulations applying to their more traditional competitors. To skeptics, IBSFs mostly represent attempts by rich capital owners and venture capitalists to profit by flouting regulations and disguising their actions as innovation.

In our cost-benefit analysis, we find:

  • The economic costs Airbnb imposes likely outweigh the benefits. 
  • Airbnb might, as claimed, suppress the growth of travel accommodation costs, but these costs are not a first-order problem for American families. 
  • Rising housing costs are a key problem for American families, and evidence suggests that the presence of Airbnb raises local housing costs. 
  • The potential benefit of increased tourism supporting city economies is much smaller than commonly advertised.
  • Property owners do benefit from Airbnb’s capacity to lower the transaction costs of operating short-term rentals, but the beneficiaries are disproportionately white and high-wealth households. 
  • The shift from traditional hotels to Airbnb lodging leads to less-reliable tax payments to cities. 
  • City residents likely suffer when Airbnb circumvents zoning laws that ban lodging businesses from residential neighbourhoods. 
  • Because Airbnb is clearly a business competing with hotel lodging, it should be subject to the same taxation regime as hotels. 

Source and full text at: https://www.epi.org/publication/the-economic-costs-and-benefits-of-airbnb-no-reason-for-local-policymakers-to-let-airbnb-bypass-tax-or-regulatory-obligations/

Also, missing from the coverage, this from the very tail-end of a BBC Edinburgh and Fife report:

The council wants to introduce the licensing scheme in response to concerns about the high number of short-term lets in the capital – particularly in the city centre.

It argues that the lettings have exacerbated housing shortages and fuelled anti-social behaviour.

The proposals were approved by the council’s planning committee last year after 88% of the 5,600 people who responded to a consultation on the proposals supported the introduction of the licensing scheme.

https://www.bbc.co.uk/news/uk-scotland-glasgow-west-66406418

17 thoughts on “Yousaf acts supported by 88% majority to protect local economy and people from Airbnb tax and safety regulations avoidance

  1. Air BnB is great for people who have money , people who want to go on wee holidays all over the place at cheaper cost but air BnB brings nothing to local communities unlike hotels which bring local jobs and often a bar or restaurant open to the general public.
    Air BnB is very profitable to those who let out their home and go stay elsewhere perhaps with a relative or another property they own, the thing is hardly anyone declares the income they get fro letting their air BnB bad HMRC don’t chase them for tax because they don’t have enough staff to do so , they have enough staff to chase PAYE though.
    Whilst we are on this subject let’s also mention private landlords who are the same they don’t declare income from lettings either and HMRC doesn’t chase them either , yes there are lots and lots of people now who make a living from renting out properties and they don’t pay the taxes due , it’s about time it was all brought under control because at present the communities affected suffer shortages of housing for younger people and for families they suffer extra late night disturbances , drinking , litter , they suffer low or no maintenance of properties let as private rent and air BnB .
    What a mess , this is what you get with low to no government that is the number one policy of the Conservative Party

    Liked by 5 people

  2. Easy money and tax avoidance are at the heart of this, the SG pays out substantial amounts of money mitigating the bedroom tax imposed by westminster but is supposed twiddle its thumbs while flats and houses are used to syphone money out of the economy tax free, mostt of which ends up in foreign owned bank accounts. Meanwhile, homes and flats which could be used for long term rental are denied to local communities. That’s the story right there.

    Liked by 5 people

          1. Yes WordPress does seem to have some quirks.
            Not sure if it makes any difference but I am now viewing the blog on their Jetpack reader

            Like

    1. There is another story regarding a subset of short term lets. We let our one spare bedroom in our privately owned home. As we never earn anything approaching £7500, we do not pay tax and, consequently, can’t claim allowances. This suits us and the taxman.

      We enjoy meetung people and hosting them and it seems that our guests enjoy stating with us. We have made several new friends and, as retirees, we feel that homeshare is healthy for us, mentally, socially and physically.

      We were already up to date with regulations regarding fire alarms and we have now increased provision according to the new regulations. I have no problem with that. However the whole gamut of the new regulations, including provision of scale drawings of the entire house, have been onerous.

      Our spare bedroom will not provide a home for anyone if we stop letting it out.

      The scheme is necessary and is needed but some categories could have been considered from a different angle.

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    1. I noticed a couple of weeks ago my posts suddenly went up as anonymous , I wasn’t doing anything differently but I think WordPress had changed something , im not sure what they changed , anyway I eventually decided to log in to WordPress every time I make a comment but log in in a different way to how I used to log in .

      Liked by 2 people

  3. Ahhh I know what’s changed , If I write my comment then click “ reply” the comment goes up as anonymous whereas previously “reply” took me to the WordPress site where I entered my WordPress login and the comment went up under my name.
    To get the comment under my name now ( changed procedure ) I have to click on the WordPress log which then takes me to the WordPress site where I enter me details and it goes up under my name.

    Liked by 2 people

  4. We have recently returned from a holiday in Soller in Mallorca spent in an airb&b. While there I picked up a copy of the local English language newspaper. It contained an article on the damage being done to the local economy by the spread of airb&b. The Scottish government is right to regulate these businesses. They must not be allowed to continue undermining local communities.I will never use an airb&b again.

    Liked by 2 people

  5. In just the past 2 or so weeks we have been seeing lots of applications for ‘short term lets’ licences in and around Edinburgh New Town. Almost every street has at least one application. Obviously due to it being a requirement as of 1st Oct. The names and address of applicants included, majority are from outwith Edinburgh, places like St.Andrews, some in England, some in the Highlands etc.
    Only one with an Edinburgh address near us, and they live in the next door property. It’s a very lucrative business. Unfortunately we also see the large public bins stacked full of what should be recycled material/packaging, suitcases dumped etc. I challenged one woman from nearby air B&B, she said she couldn’t see the recycling bins, huh huh they are all over the place you can hardly miss them.

    It’s a huge problem, not good for the local area or economy of the city or Scotland. Those in the business must pay more tax and higher council tax, the impact on infrastructure is significant not to mention lack of rented property for the people who want to live in the cities. We are going to end up with those who cannot afford to buy, having to live further away, and to travel into cities for their work, costing them more in time and money. Like London, where only the rich and tourists can afford to stay in the city itself.

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