Current Consultations and Engagement with Government
Period - Report April 2022 to March 2023 - The Following are the current areas of engagement (Formal or in-formal consultations) where the WTA Chair and Policy Advocate are engaging with Welsh Government. If you wish to join the debate, please contact us direct.
Wales Chair, Suzy Davies and Wales Policy Advisor, Adrian Greason-Walker have responded throughout the year to calls from the Wales media. Some resulting from the Press releases sent from the WTA (6). Others from our responses to consultations. This has resulted in over 20 separate pieces interviews for TV, Radio and items in main stream press coverage.
We also engage via the Tourism Cross Party Group meetings – The last meeting was held on the 15th February 2023 on the Consultation on proposals for a Statutory licensing scheme for all visitor accommodation providers in Wales. (Consultation documentation https://www.gov.wales/statutory-licensing-scheme-all-visitor-accommodation-providers-wales). The WTA submitted a response.
We have also engaged with the Wales Tourism and Hospitality Skills Partnership (18/01/23) with the development of the Welsh Government’s Flexible Skills Programme to support training in the sector; the Welsh Government Tourism Stakeholder Group (06/03/23) along with other members, to contribute to the group’s remit centred on the development of the Tourism Recovery Plan - 'Let's Shape Our Future'.
We are always seeking actual research data and information that can be utilised to reinforce our position, including case studies. These are the current Formal & In-Formal Consultations that the WTA is engaging in (to 31st March 2023):
Live: Questionnaire on the Welsh Government’s proposed new visitor accommodation licensing scheme
As part of the Welsh Government’s reforms to the tourism industry there is an aim to establish a ‘Licensing’ scheme for all visitor accommodation businesses.
The Industry has long called for a ‘Registration’ scheme to assist with the development of a “level playing field” for all such businesses (although a licensing scheme may mean something quite different). The WTA launched a questionnaire with the assistance of PASC UK, MWT and other members which the results being utilised in our responses to Welsh Government.
Discretionary visitor levy for local authorities (Formal Consultation Closed 13/12/2022)- From the outset the WTA has made it clear to the Welsh Government that our members are almost unanimous in their rejection of any form of Tourism Levy being applied to accommodation providers across Wales. The Welsh Government’s Programme for Government, and the Cooperation Agreement between the Welsh Government and Plaid Cymru, both contain commitments to introduce levies. Rebecca Evans, MS has stated that a levy would enable destinations in Wales to be enjoyed for generations to come and that 'A tourism tax would raise revenue for local authorities enabling them to manage services and infrastructure which makes tourism a success'. Although we have recently been given assurances that any levy would not be introduced for a number of years, 2026 at the earliest, a formal consultation on draft legislative proposals was launched on the 20th September 2022. The WTA responded post engagement with Welsh Govt and private sector engagement. Documents here: https://gov.wales/visitor-levy-html. Whilst we remain firmly in-principle against the introduction of a Tourism Levy, frollowing the most recent announcment from Rebecca Evans MS, we now believe given recent Welsh Government form they will push ahead regardless. We are now in a situation as to how we can attempt to shape of that tax. The WTA membership has agreed that we will engage with the consultation, but we continue to be clear that we do not support it's introduction.
Our objections to the tax broadly revolve around:
- Poor timing: In the middle of a cost of living and energy crises, political tension and post pandemic
- Potential economic damage that would be wrought if imposed given the decrease in demand with regard to price elasticity
- The cost of implementing and policing a tax and the unfair nature of doing so without a suitable registration scheme
- The lack of an economic impact assessment that reviews the cumulative impact of a raft of new proposals (see below)
- and.....
Non-Domestic Rating (Amendment of Definition of Domestic Property) (Wales) Order 2022 (Adopted): Negotiation of exemptions. The announcement, on the 2nd of March 2022, of the proposal to raise the occupancy criteria by 160% to 182 days came as a shock, particularly to small self-catering businesses (furnished holiday lettings or FHLs) . It was also the start of a whole new raft of proposed taxes and regulation which will over this term of Welsh Government have far-reaching impacts on the tourism industry across Wales.
The WTA believe the first consultation carried out by Welsh Government last year (25 August to 17 November 2021) was deeply flawed, securing only nine responses which agreed with the proposal of 182 days. The majority of respondents to that consultation proposed an increase in line with the HMRC threshold of 105 days occupancy. We have as a sector been unified in our opposition to the 182-day threshold provision Order throughout. In response the WTA, PASC and UKH submitted a body of evidence (link below) containing 400+ private testimonials to the second ‘technical’ consultation. Our body of evidence clearly showing the potential economic and personal impact. Despite these responses which clearly challenge assumptions made on the back of officials’ occupancy data and without any explanation as to why our evidence has been ignored, the Welsh Government has now drawn the amendment into law as of the 13/06/22.
'The legislation in question was subject to a motion to annul (7th July 22) which was debated in the Senedd on 6 July. The Senedd voted against the motion, confirming support for the changes, which will ensure that the properties concerned are classed as non-domestic only if they are occupied for business purposes for the majority of the year. If they are let on a less frequent basis, they will be liable for council tax'. Rebecca Evans MS - Minister Finance and Local Government.
Rebecca Evans MS follow up consultation with regard to exemptions, aside from one small concession in relation to having specific planning permission yielded nothing. We will continue to push for exemptions from both the tax itself and the additional tax up to 300%. The WTA and PASC has met with the Minister and civil servants officials for further discussion on exemptions to the above Order. We have so far had six formal exchanges with the Minister. The WTA, PASC and UKH Body of evidence and subsequent formal letters from Ministers can be downloaded from the links below. WTA response documents downloadable from the WTA Consultation website pages.
Reform of non-domestic rating in Wales – (Closed 14/12/2022) - Rebecca Evans MS's launched a consultation on a range of proposals which will make changes to NDR. Under a 'commitment to make the case for clear and stable tax devolution and, where possible, to legislate to ensure decisions are taken and scrutinised in Wales', the Welsh Government the levers are limited in practice through legislative and operational constraints. The WG agenda for NDR reform seeks to change the system for Wales. WG proposals include: - More frequent revaluation cycles to ensure that rates valuations more accurately reflect up-to-date market conditions. Improving the flow of information between government and ratepayers. This the interesting one...'Providing the Welsh Government with more flexible legislation to amend reliefs and exemptions in future years. A review of reliefs and exemptions to ensure the arrangements align with the Programme for Government. Providing greater scope to vary the multiplier to help align annual increases with economic development priorities. Improving the administration of valuation functions and rating lists to streamline processes and reduce the burden on government and ratepayers. Further measures to ensure they can continue tackling avoidance. In a statement on the legislative programme on 5 July 2022, the First Minister also announced plans to bring forward a local government finance bill towards the end of 2023. Subject to the outcome of the consultation, the Bill will enable WG to take forward some of their proposals for NDR. WTA will submit a response.
A Fairer (Domestic) Council Tax Consultation (Closed 4/10/2022). - Welsh Government - Formal Consultation the Welsh Government are seeking views on completing a council tax revaluation of all 1.5 million properties in Wales to rebalance the system to reflect property values. They intend designing a new system of bands and tax rates that is including considering adding more bands to the top and bottom ends of the scale if needed; revaluing more frequently to keep council tax fairly distributed on a more regular basis and improving the framework of exemptions and premiums. WTA response below.
Historic Environment (Wales) Bill – (Consideration Consultation) The Legislation, Justice and Constitution Committee agreed (04/07/22) to scrutinise the Bill in line with Standing Order 26C.17, in that it will consider whether: i. it is satisfied that the scope of the consolidation is appropriate; ii. it is satisfied that the relevant enactments have been included within the consolidation; iii. the Bill correctly consolidates the enactments or changes their substantive legal effect only to the extent allowed by Standing Order 26C.2; iv. the Bill consolidates the law clearly and consistently. The Committee will also consider any other matter it believes is relevant to Standing Order 26C. A response was submitted by the WTA/Historic Houses (18/08/22)
Consultation on Operational Standards Rules (26/09-21/11/22). The Building Act 1984 as amended by the Building Safety Act 2022 includes provisions to improve competence levels and accountability in the building control sector by creating a new professional and regulatory structure for building control. To do this the Welsh Ministers will need to establish and maintain a register of building control approvers (either organisations or individuals) currently known as ‘Approved Inspectors’. Those who wish to continue undertaking building control work will need to register as ‘registered building control approvers’ (“RBCAs”). They will also need to meet a minimum set of standards. The Act therefore enables the Welsh Ministers to set operational standards rules defining the minimum performance standards that Building Control Bodies, both LAs and RBCAs, must meet. We are undecided as to whether to submit a response.
Closed and proposed – Next stage?
Statutory Licensing Scheme for holiday accommodation – Welsh Government have stated their intention to introduce a licensing scheme making it a requirement to obtain a license. Note the use of ‘licensing’ as opposed to ‘registration’. Welsh Government has already commissioned an independent Cardiff-based research agency, Strategic Research & Insight (SRI). Consultation now closed see above. Their stated aim here is to raise standards across the tourism industry. Although the WTA has always supported a registration scheme, we do not support a full licensing scheme. We are also concerned that the Welsh Government has not introduced a registration scheme prior to launching consultations into tourism taxation.
Land Transaction Tax and property classification (Closed): Following a consultation about varying land transaction tax locally in areas with large numbers of second homes, local authorities will now develop a national framework so they can request increased land transaction tax rates for second homes and holiday lets to be applied in their local area. The WTA responded with an objection to the consultation.
Reform of the School Year – Proposed. The Welsh Government have committed to exploring the structure of the school year to tackle inequality and 'bring it more into line with modern and future patterns of family life and employment'. This is being taken forward as part of the Programme for Government and the commitments in the Cooperation Agreement with Plaid Cymru. No formal consultation has been announced. WTA will respond accordingly when requested.
Wales Chair, Suzy Davies and Wales Policy Advisor, Adrian Greason-Walker have responded throughout the year to calls from the Wales media. Some resulting from the Press releases sent from the WTA (6). Others from our responses to consultations. This has resulted in over 20 separate pieces interviews for TV, Radio and items in main stream press coverage.
We also engage via the Tourism Cross Party Group meetings – The last meeting was held on the 15th February 2023 on the Consultation on proposals for a Statutory licensing scheme for all visitor accommodation providers in Wales. (Consultation documentation https://www.gov.wales/statutory-licensing-scheme-all-visitor-accommodation-providers-wales). The WTA submitted a response.
We have also engaged with the Wales Tourism and Hospitality Skills Partnership (18/01/23) with the development of the Welsh Government’s Flexible Skills Programme to support training in the sector; the Welsh Government Tourism Stakeholder Group (06/03/23) along with other members, to contribute to the group’s remit centred on the development of the Tourism Recovery Plan - 'Let's Shape Our Future'.
We are always seeking actual research data and information that can be utilised to reinforce our position, including case studies. These are the current Formal & In-Formal Consultations that the WTA is engaging in (to 31st March 2023):
Live: Questionnaire on the Welsh Government’s proposed new visitor accommodation licensing scheme
As part of the Welsh Government’s reforms to the tourism industry there is an aim to establish a ‘Licensing’ scheme for all visitor accommodation businesses.
The Industry has long called for a ‘Registration’ scheme to assist with the development of a “level playing field” for all such businesses (although a licensing scheme may mean something quite different). The WTA launched a questionnaire with the assistance of PASC UK, MWT and other members which the results being utilised in our responses to Welsh Government.
Discretionary visitor levy for local authorities (Formal Consultation Closed 13/12/2022)- From the outset the WTA has made it clear to the Welsh Government that our members are almost unanimous in their rejection of any form of Tourism Levy being applied to accommodation providers across Wales. The Welsh Government’s Programme for Government, and the Cooperation Agreement between the Welsh Government and Plaid Cymru, both contain commitments to introduce levies. Rebecca Evans, MS has stated that a levy would enable destinations in Wales to be enjoyed for generations to come and that 'A tourism tax would raise revenue for local authorities enabling them to manage services and infrastructure which makes tourism a success'. Although we have recently been given assurances that any levy would not be introduced for a number of years, 2026 at the earliest, a formal consultation on draft legislative proposals was launched on the 20th September 2022. The WTA responded post engagement with Welsh Govt and private sector engagement. Documents here: https://gov.wales/visitor-levy-html. Whilst we remain firmly in-principle against the introduction of a Tourism Levy, frollowing the most recent announcment from Rebecca Evans MS, we now believe given recent Welsh Government form they will push ahead regardless. We are now in a situation as to how we can attempt to shape of that tax. The WTA membership has agreed that we will engage with the consultation, but we continue to be clear that we do not support it's introduction.
Our objections to the tax broadly revolve around:
- Poor timing: In the middle of a cost of living and energy crises, political tension and post pandemic
- Potential economic damage that would be wrought if imposed given the decrease in demand with regard to price elasticity
- The cost of implementing and policing a tax and the unfair nature of doing so without a suitable registration scheme
- The lack of an economic impact assessment that reviews the cumulative impact of a raft of new proposals (see below)
- and.....
Non-Domestic Rating (Amendment of Definition of Domestic Property) (Wales) Order 2022 (Adopted): Negotiation of exemptions. The announcement, on the 2nd of March 2022, of the proposal to raise the occupancy criteria by 160% to 182 days came as a shock, particularly to small self-catering businesses (furnished holiday lettings or FHLs) . It was also the start of a whole new raft of proposed taxes and regulation which will over this term of Welsh Government have far-reaching impacts on the tourism industry across Wales.
The WTA believe the first consultation carried out by Welsh Government last year (25 August to 17 November 2021) was deeply flawed, securing only nine responses which agreed with the proposal of 182 days. The majority of respondents to that consultation proposed an increase in line with the HMRC threshold of 105 days occupancy. We have as a sector been unified in our opposition to the 182-day threshold provision Order throughout. In response the WTA, PASC and UKH submitted a body of evidence (link below) containing 400+ private testimonials to the second ‘technical’ consultation. Our body of evidence clearly showing the potential economic and personal impact. Despite these responses which clearly challenge assumptions made on the back of officials’ occupancy data and without any explanation as to why our evidence has been ignored, the Welsh Government has now drawn the amendment into law as of the 13/06/22.
'The legislation in question was subject to a motion to annul (7th July 22) which was debated in the Senedd on 6 July. The Senedd voted against the motion, confirming support for the changes, which will ensure that the properties concerned are classed as non-domestic only if they are occupied for business purposes for the majority of the year. If they are let on a less frequent basis, they will be liable for council tax'. Rebecca Evans MS - Minister Finance and Local Government.
Rebecca Evans MS follow up consultation with regard to exemptions, aside from one small concession in relation to having specific planning permission yielded nothing. We will continue to push for exemptions from both the tax itself and the additional tax up to 300%. The WTA and PASC has met with the Minister and civil servants officials for further discussion on exemptions to the above Order. We have so far had six formal exchanges with the Minister. The WTA, PASC and UKH Body of evidence and subsequent formal letters from Ministers can be downloaded from the links below. WTA response documents downloadable from the WTA Consultation website pages.
Reform of non-domestic rating in Wales – (Closed 14/12/2022) - Rebecca Evans MS's launched a consultation on a range of proposals which will make changes to NDR. Under a 'commitment to make the case for clear and stable tax devolution and, where possible, to legislate to ensure decisions are taken and scrutinised in Wales', the Welsh Government the levers are limited in practice through legislative and operational constraints. The WG agenda for NDR reform seeks to change the system for Wales. WG proposals include: - More frequent revaluation cycles to ensure that rates valuations more accurately reflect up-to-date market conditions. Improving the flow of information between government and ratepayers. This the interesting one...'Providing the Welsh Government with more flexible legislation to amend reliefs and exemptions in future years. A review of reliefs and exemptions to ensure the arrangements align with the Programme for Government. Providing greater scope to vary the multiplier to help align annual increases with economic development priorities. Improving the administration of valuation functions and rating lists to streamline processes and reduce the burden on government and ratepayers. Further measures to ensure they can continue tackling avoidance. In a statement on the legislative programme on 5 July 2022, the First Minister also announced plans to bring forward a local government finance bill towards the end of 2023. Subject to the outcome of the consultation, the Bill will enable WG to take forward some of their proposals for NDR. WTA will submit a response.
A Fairer (Domestic) Council Tax Consultation (Closed 4/10/2022). - Welsh Government - Formal Consultation the Welsh Government are seeking views on completing a council tax revaluation of all 1.5 million properties in Wales to rebalance the system to reflect property values. They intend designing a new system of bands and tax rates that is including considering adding more bands to the top and bottom ends of the scale if needed; revaluing more frequently to keep council tax fairly distributed on a more regular basis and improving the framework of exemptions and premiums. WTA response below.
Historic Environment (Wales) Bill – (Consideration Consultation) The Legislation, Justice and Constitution Committee agreed (04/07/22) to scrutinise the Bill in line with Standing Order 26C.17, in that it will consider whether: i. it is satisfied that the scope of the consolidation is appropriate; ii. it is satisfied that the relevant enactments have been included within the consolidation; iii. the Bill correctly consolidates the enactments or changes their substantive legal effect only to the extent allowed by Standing Order 26C.2; iv. the Bill consolidates the law clearly and consistently. The Committee will also consider any other matter it believes is relevant to Standing Order 26C. A response was submitted by the WTA/Historic Houses (18/08/22)
Consultation on Operational Standards Rules (26/09-21/11/22). The Building Act 1984 as amended by the Building Safety Act 2022 includes provisions to improve competence levels and accountability in the building control sector by creating a new professional and regulatory structure for building control. To do this the Welsh Ministers will need to establish and maintain a register of building control approvers (either organisations or individuals) currently known as ‘Approved Inspectors’. Those who wish to continue undertaking building control work will need to register as ‘registered building control approvers’ (“RBCAs”). They will also need to meet a minimum set of standards. The Act therefore enables the Welsh Ministers to set operational standards rules defining the minimum performance standards that Building Control Bodies, both LAs and RBCAs, must meet. We are undecided as to whether to submit a response.
Closed and proposed – Next stage?
Statutory Licensing Scheme for holiday accommodation – Welsh Government have stated their intention to introduce a licensing scheme making it a requirement to obtain a license. Note the use of ‘licensing’ as opposed to ‘registration’. Welsh Government has already commissioned an independent Cardiff-based research agency, Strategic Research & Insight (SRI). Consultation now closed see above. Their stated aim here is to raise standards across the tourism industry. Although the WTA has always supported a registration scheme, we do not support a full licensing scheme. We are also concerned that the Welsh Government has not introduced a registration scheme prior to launching consultations into tourism taxation.
Land Transaction Tax and property classification (Closed): Following a consultation about varying land transaction tax locally in areas with large numbers of second homes, local authorities will now develop a national framework so they can request increased land transaction tax rates for second homes and holiday lets to be applied in their local area. The WTA responded with an objection to the consultation.
Reform of the School Year – Proposed. The Welsh Government have committed to exploring the structure of the school year to tackle inequality and 'bring it more into line with modern and future patterns of family life and employment'. This is being taken forward as part of the Programme for Government and the commitments in the Cooperation Agreement with Plaid Cymru. No formal consultation has been announced. WTA will respond accordingly when requested.
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| letter_to_vaughan_re_ndr_meeting.pdf |
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| WTA Tourism Tax Commissioned Paper |
| consultation_land_transaction_tax_28032022.docx |
| letter_from_rebecca_evans_re_rejection_of_exemptions_150323.pdf |
| WTA Budget response 22/11/2021.docx |
| WTA Consultation Response Permit Dev Rights 15/02/22 |
| Tourism Tax Position Statement 10/11/21 |