Economic Proposals for Dundee

Two economic proposals could be developed for Dundee, if councillors approve reports.  

They will consider whether early engagement should begin on a potential visitor levy for the city.  

And elected members are also being asked to agree to the council playing a role in efforts to establish a Business Improvement District (BID) in the city centre.  

Two separate reports into these issues will come before the Fair Work, Economic Growth and Infrastructure Committee at its next meeting.  

On the visitor levy, the committee will hear that under the Visitor Levy (Scotland) Act, councils can establish a scheme to raise funds that should be “re-invested locally on facilities and services substantially for or used by visitors”.  

Scottish Government guidelines give local authorities the power to determine the rate of the levy, where it applies and the maximum number of nights to apply the levy to visitors.  

The committee is being asked to approve early engagement with local businesses, residents and other relevant parties to inform a draft scheme for the city.  Work would be carried out to assess the potential income that could be generated by a levy.  

Results would be reported back to councillors by next spring, and they would then decide on whether to proceed onto the formal consultation stage.   

The committee will hear that early and ongoing engagement with those most likely impacted by the possibility of the introduction of a levy scheme in Dundee is fundamental.  The visitor economy in Dundee is continuing to develop.  There were 1.35 million visits to Dundee in 2023 with an average length of stay of 2.6 days.  The economic impact of the visitor economy is £243 million per annum, with the sector supporting 3500 jobs.  

Meanwhile, on the Business Improvement District, the committee will hear that the long-term City Centre Strategic Investment Plan is designed to encourage growth in the city centre and requires close work with private sector interests.    

A BID is a business led initiative within a defined area where businesses work together and collectively invest funds raised by a levy on non-domestic rates. The levy is used for projects and improvements which must be additional to services already provided by the local authority.  

A steering group of businesses interested in a Dundee BID has been formed, with administrative support provided through Dundee & Angus Chamber of Commerce.   

The steering group has set a provisional date for a ballot of businesses on the issue in March next year.  

Councillors are being asked to agree that senior officers will engage in the BID process and provide support and guidance on technical aspects, including collection and management of the levy.  

Committee convener Councillor Steven Rome said: "These reports outline the very early stages of what could be significant developments for Dundee.  

“We need to carefully consider the views of everyone who expresses an opinion about these matters.  

“Both the visitor levy and the Business Improvement District have the potential to be transformative, but we have to take each step at a time.  

“There is a real shared desire to make Dundee a better place for everyone, and we must look thoroughly at every tool at our disposal.”  

The Fair Work, Economic Growth and Infrastructure Committee meets on Monday June 9.