Hotelier says tax issue may ward off investors

Deputy Business Editor

Thursday 14 March 2013

VETERAN hotelier Maurice Taylor has warned uncertainty over taxes in Scotland ahead of the independence referendum is damaging investment intentions in the leisure sector.

CONCERNS: Hotelier Maurice Taylor, pictured at his Bonne Auberge in Glasgow, fears investment damage over tax uncertainty. Picture: Colin Mearns

Custom byline text:

greig cameron deputy business editor

The founder of hotel management company Chardon and the La Bonne Auberge restaurants said he was not against independence but questioned whether "any sensible" person could cast a vote without more information being made available.

Mr Taylor said: "The question is whether we, as the business community, can trust Alex Salmond to give us a level playing field or an improved playing field. I can only really speak with authority on the hospitality and hotel business but uncertainty is bad for business."There is a lot of uncertainty being created by this question of do we split or do we not split."Mr Taylor cited the most recent business rates re-valuation in 2010 as an example of when the implementation of a tax had differed greatly throughout the UK.In Scotland, the full increases were brought in straight away compared to a staggered regime in England and Wales.That decision badly affected a number of hotel businesses which saw their rate bills rocket overnight and led to thousands of pounds of new costs needing to be absorbed.He said: "While Scotland had the opportunity to phase in these new rates, the Government chose instead to hit every business hard right away, so there is a degree of nervousness among investors that, if history was to repeat itself, businesses in Scotland could find themselves subject to higher taxation than elsewhere in the UK in the event of a yes vote in the independence referendum."Hotel investors have the whole world within which to invest, so why risk their investment in a small country where there is uncertainty about the future tax regime?"Mr Taylor said the uncertainty meant he and other peers in his sector were waiting before revamping existing hotels or building new ones.Chardon currently manages more than 30 hotels across the UK and Mr Taylor admitted his focus at the moment was not on expanding in Scotland.He said: "If there is a question mark that I am risking my business because I don't know what the future holds then I would hold back."I am in a great position to expand my business right now as we are not over borrowed [at the bank] and I would also be relaxed in saying that you will never build a new hotel cheaper than you can today."We are a big earner and employer and we should be getting encouraged."A Scottish Government spokesperson said: "There is no evidence to support these claims. Independence will provide new opportunities for tourism in Scotland, for example with control of Air Passenger Duty a future Scottish Government could take steps to encourage higher numbers of visitors – a move supported by Scotland's airports – or, with control of taxation, Scotland could choose to introduce the reduction in VAT for tourism businesses that the UK Government has so far refused to put in place. The latest figures show Scotland's tourism sector is continuing to grow with a 2% increase in overseas visitors over the year."

Contextual targeting label:

Business

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis. If you're a relatively new user then your comments will be reviewed before publication and if we know you well then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules, which are available here.

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

Hotelier says tax issue may ward off investors

Commenting & Moderation

MOST READ

SPONSORED LINKS

MOST COMMENTED