Plans for a visitor levy in Edinburgh took another significant step forward on Thursday as councillors agreed key details of the draft scheme.

The levy will see visitors staying in accommodation be required to pay a fixed fee per night of 5 per cent of the accommodation cost, capped at seven consecutive nights.

It will apply to paid accommodation including hotels, short-term lets, hostels and bed and breakfasts.

The so called “tourist tax” is predicted to raise £45-50 million a year by 2028/29.