Following a day of debate at the City Chambers on what to spend the anticipated Visitor Levy on, a deal struck by the SNP, Labour and Liberal Democrat groups won the day.

The local authority will now plan to allocate around £90 million in the next three years on projects in the three agreed strands – City Operations, Culture, Heritage and Events and Destination and Visitor Management.

Edinburgh is the first local authority in the UK to introduce the Visitor Levy in the city.

The expected income will rise to around £50 million per annum within the next few years. It will be raised from the 5% tax on overnight stays in the capital, which will be collected from 24 July.

SNP group leader Simita Kumar said: “We want to do everything we can in terms of making sure we are mitigating the impact of tourism on to housing.

“Another win has been the injection of the very much needed revenue into not just the centre of the city, but across out communities.

“Winning other parties’ support for our proposals on increasing housing investment has been a long, hard road.”

Proposals which will have priority will include:

  • £3 million to be spent on Hunter Square, just off the Royal Mile, a public realm area which has become an eyesore.
  • £2 million on Cramond Foreshore
  • £2.5 million on Portobello Promenade
  • £5 million on Leith Theatre
  • £3 million for the conversion of the former Royal High School into a national music centre
  • £850,000 for city centre policing with increased CCTV
  • £2.75 million on creating a Market Street Arts Hub – this will be a refurbishment programme at the City Art Centre
  • £3.85 million on speeding up the council’s Setted Streets programme
  • £3 million for new and upgraded toilets
  • £100,000 a year for the next three years on replacing and upgrading rubbish bins
  • £500,000 per annum on tackling graffiti
  • £1.3 million on additional waste services, cleansing and patrols in the city centre
  • Investment in premier parks particularly in the fields of repairs and employing twice as many park rangers
  • Programmes to green the city with floral gateways and additional planting in green spaces.

Old Town

City Centre councillor, Finlay McFarlane told The Edinburgh Reporter he was very proud of the deputation from the newly revived Old Town Community Council who spoke passionately about the need for investment in the area which has a high tourist footfall..

He said this represented the culmination of three years of lobbying for things such as street cleansing and extra police numbers. He explained that the community council moved their meeting forward so that they could examine the spending plans properly. Cllr McFarlane said: “It is a good day to be a City Centre Ward councillor, but this is really a win for the community council.”

Transport and Environment

Councillors on the Transport and Environment Committee will also consider how to prioritise improvement schemes for Princes Street and George Street. It was thought the council would approve spending for the £35 million George Street project, but that was removed for now as part of the cross party deal.

Cllr Stephen Jenkinson the city’s Transport Convener, was clearly disappointed having told The Edinburgh Reporter previously how ecivted he was that some of the “stalled” projects like this one would now proceed.

One long-running transport initiative which will no doubt welcome spending is that proposed for the last 20 years by Causey Development Trust. Portobello Kilns is another project which may be given some funding dependent on positive decisions from both the Edinburgh Visitor Levy Advisory Forum and the Transport Committee in due course.

The Scottish Government legislation provides that monies raised must be ploughed back into parts of the city infrastructure mostly used by business and leisure visitors. The council is advised by the Edinburgh Visitor Levy Advisory Forum.

Council Leader Jane Meagher said: “We’re rightly proud to be the first local authority in the UK to push ahead with a city-wide visitor levy scheme, and I can’t stress enough just how big an opportunity this is for our city, our residents and our visitors.

“Let’s not forget why we’re doing this. These spend programmes will help us not only to sustain and enhance the things that make our city so special, but also to better manage the effects of tourism and major events on those who live here all year round.

“But it’s so much more than that. After all, what’s not to like about visitors to Edinburgh contributing towards projects and services that benefit us all? We can now invest further in our plentiful parks and greenspaces, transform our city into a cleaner, greener and more welcoming environment, put more police on our streets and bring much-loved cultural venues such as the Royal High School and Leith Theatre back into use for the first time in decades. The list goes on.

“Agreeing these investment programmes today is a significant milestone in delivering a scheme that has been many years in the making, and is the result of a huge amount of development and engagement; engagement that, I’m pleased to say, will continue with communities making spending decisions in their local areas.

“I’m grateful to the many Council officers, Forum members, businesses and residents for their valuable contributions and for helping us to make this happen. I’m sure, like me, they’re looking forward to seeing the many benefits the levy will bring to our historic and beautiful capital city.”

Other areas of spending will include:

  • A Housing and Tourism Mitigation fund which could delivere 472 affordable homes by 2029
  • Investment in Edinburgh’s cultural organisations
  • A Well Kept City Fund to revitalise the city on the themes of Clean, Green, Safe, Well-Maintained and Sustainable Infrastructure

£2 million will be allocated to the participatory budgeting fund which will be spread out over all 17 council wards.

Edinburgh City Chambers. © 2026 Martin McAdam