North Wales MS Mark Ishewood has today urged the Welsh Government to support the independent hospitality sector in Delyn after receiving reports that some businesses have been forced to close because of decisions made by those in power in Cardiff Bay.
Raising the matter in this afternoon’s meeting of the Welsh Parliament, during a question asking the Cabinet Secretary for the Economy, Energy and Planning how the Welsh Government is supporting the independent hospitality sector in Delyn, Mr Isherwood said changes to legislation and taxation in Wales are having a devastating impact on many self-catering hospitality businesses.
Speaking in the Chamber, he therefore challenged the Cabinet Secretary over actions to address this:
He said:
“Of course, I'm very keen to support real ale breweries in Delyn and beyond, including Mold's Novemberfest, celebrating local food, real ale and entertainment. However, I've been contacted on a grimmer note by many self-catering hospitality businesses, legitimate businesses in Delyn, forced to close, they tell me, by Welsh Government decisions.
“PASC, the Professional Association of Self-Caterers, lobbying with both the Wales Tourism Alliance and UK Hospitality Wales, as well as many regional organisations, have tried to head off the worst impacts of much of the Welsh Government's changes to legislation and taxation in Wales, and provided evidence to the Welsh Government on the damage these measures will cause. Last year saw the poorest trading conditions in almost a decade for self-catering.
“So, if you genuinely believe in supporting the independent hospitality sector in Delyn and beyond, when will you be carrying out an impact assessment and formal review of the 182-day letting threshold, and why have you continued to ignore their calls to allow further exemptions from the Council Tax Premium for genuine businesses and to delay the implementation of the Tourism Levy until businesses at least recover to pre-pandemic levels? These are local people, local businesses, and premises which were not suitable for primary dwelling for local people.”
In her response, the Cabinet Secretary said:
“There is currently a Welsh Government consultation, which is being led by the finance Secretary, which is seeking views on proposed refinements to the treatment of self-catering properties for local tax purposes. That closes on 20 November, and I know that colleagues will be taking the opportunity to make their submissions to that.
“In terms of the kind of things which the Secretary is considering looking at in future, one of those is allowing holiday-let owners to use an average of 182 days let over several years. That means that those who might narrowly miss out on the 182 days in the latest year would remain on the non-domestic rates if they had achieved it on average over two or three previous years. Also, considering allowing up to 14 days of free holidays donated to charity to count towards the 182-day target, for example. Those are amongst the proposals which are currently in the consultation.”
Speaking after the meeting, Mr Isherwood said:
“PASC e-mailed later thanking me ‘for raising the question to the Cabinet Secretary today’. As they added, however, ‘sadly the response didn't really add anything’.
“I have long been calling for a review of the 182-day policy, repeatedly highlighting the undue hardship our hospitality sector is experiencing because of this and other Welsh Government policies.
“And whilst we have been waiting, we have regrettably had to watch businesses closing their doors, impacting livelihoods and the local visitor economy. Action can not come soon enough.”
