Key Points
- Councillors approved initial capital investment plans from Edinburgh’s Visitor Levy revenue, including a £41.1m package for City Operations and Infrastructure over three years.
- The Housing, Homelessness and Fair Work Committee endorsed a £5m Housing and Tourism Mitigation Fund to deliver up to 472 affordable homes by 2028/29.
- Projects include George Street redevelopment, Portobello Promenade masterplan, bin upgrades, street improvements, and new public toilets.
- Visitor Levy is a 5% charge on paid overnight accommodation, starting for bookings from 1 October 2025 and stays from 24 July 2026, capped at five nights.
- Final approvals pending full council budget meeting on 26 February 2026, with further spending reports in February.
Edinburgh (Edinburgh Daily News) January 31, 2026 – Councillors have approved key capital projects funded by the new Visitor Levy, marking the first major spending commitments from the scheme.
The City of Edinburgh Council’s Housing, Homelessness and Fair Work Committee endorsed plans on 29 January for a £5 million Housing and Tourism Mitigation Fund, alongside progress on a £41.1 million City Operations and Infrastructure package over three years. These initiatives aim to mitigate tourism pressures while enhancing city services, according to reports from Scottish Housing News and Edinburgh Chamber of Commerce.
What capital projects were approved?
The approved City Operations and Infrastructure fund will support capital borrowing for the George Street and First New Town project, a masterplan for Portobello Promenade, upgrades to bins, acceleration of the setted streets programme, and improvements to public toilets. The Edinburgh Chamber of Commerce detailed these workstreams, noting their role in managing tourism impacts and boosting visitor experiences.
As reported by Edinburgh Chamber of Commerce, the full list of recommended projects outlines wide-ranging investments to address immediate and long-term city needs.
How will the Visitor Levy support affordable housing?
The £5 million Housing and Tourism Mitigation Fund could deliver 472 affordable homes between 2026/27 and 2028/29, with over 75% for social rent, helping free up hotel and bed and breakfast rooms for visitors. Scottish Housing News reported the committee’s approval, emphasising benefits for visitor economy workers.
Who will the levy affect?
The 5% levy applies to paid overnight accommodation including hotels, self-catering lets, hostels, and campsites, charged on the first five nights and collected by the council from providers. Exemptions may apply to certain groups, as outlined by the City of Edinburgh Council.
What are the next steps for implementation?
Proposals require final approval at the full council budget meeting on 26 February 2026, with performance reporting to committees annually thereafter. Additional revenue streams for destination management, culture, heritage, events, and participatory budgeting will be debated in February committees, following consultation with the Visitor Levy Advisory Forum.
Transport and Environment Convener Councillor Stephen Jenkinson described the levy as a “transformational development,” urging the city to seize opportunities for strategic projects, according to the Edinburgh Chamber of Commerce.
