Funds from Edinburgh’s Transient Visitor Levy will be used for new housing – although questions were raised about the legality of the plans.
Councillors approved a proposal to use some of the funds to provide around 472 homes, with more than 75% rented out at social rents on Tuesday.
But some members of the committee objected, with one asking if the council had fully explored legal risks around the plans.
The council’s top housing officer, meanwhile, celebrated the move – which could also see some new lower rent housing set aside for hospitality workers.
Part of the discussion around the plan was conducted in private, with press and the public excluded and cameras turned off, though the final decision to approve the plan was made in public.
Housing Convener, Tim Pogson, had warned the meeting at the start of the discussion that some of the proceedings were likely to be held in private.
A link on the meeting agenda for the meeting also said that some information about the plan was restricted from public view.
Prior to the committee entering private business, Conservative councillor Marie Clair-Munro asked about the legality of the proposal.
She said: “Business groups and legal experts have said using it for housing may not be what the law intended.
“I’m hoping officers can clearly confirm that using the visitor levy funds to support housing is fully compliant with the visitor levy legislation, and explain what legal risks the council is taking if this is potentially to be challenged.”
Alex Blyth, senior housing development officer at the council, replied that an answer to the question would have to be given in private.
After the public were allowed back into the room, councillors agreed to support the plans, though the two Conservative councillors did not.
Cllr Graeme Bruce (Cons) said: “While we all want to find more funding for housing, whether that’s social or mid market rent, we feel the approach the council are wanting to take here risks a potential legal challenge.
“The 2024 Visitor Levy Act requires this fund to be used to support or sustain facilities for persons visiting a scheme area.
“In our opinion, any funding generated should be used directly related to the act. We feel the approach the council is wanting to take is too risky, and we cannot support that direction of travel.”
Cllr Pogson said: “If the visitor economy cannot access those individuals who work in the sector, then there would be no sector.”
He added that he saw the plan as an opportunity to support housing need in the city, as well as enhance the capital’s visitor economy.
The meeting papers can be found at this link.
By Joseph Sullivan Local Democracy Reporter
