North Wales MS Mark Isherwood has today challenged the Finance Minister over the Welsh Government’s second home council tax and the negative impact this is not only having on holiday let business owners in North Wales, but also a range of other businesses.
From April last year, holiday lets in Wales have had to be rented for 182 days in a year before they qualify for business rates, leaving owners at risk of new Council Tax premiums of up to 300%.
Since the new rule was first proposed, Mr Isherwood has repeatedly highlighted to Welsh Government Ministers the impact of the changes on legitimate holiday-let business owners in North Wales.
In today’s meeting of the Welsh Parliament, he raised the issue again, this time with the Finance Minister, emphasising the negative impact it is also having on a range of other businesses in North Wales.
He said:
“Speaking here 22 months ago, I quoted legitimate, local, North Wales-resident, holiday let business owners, who stated that Welsh Government regulations allowing local authorities to charge a council tax premium of up to 300 per cent on second homes in Wales would destroy them. I asked you what Impact Assessments the Welsh Government had therefore carried out of the consequences for legitimate holiday-let businesses with properties that are not used as second homes.
“I've since heard from North Wales constituents, not only of many such businesses closing in consequence, but also of the negative impact that this is having on a range of other local businesses. How are you therefore monitoring the impact of this now on people like the constituent who recently wrote:
'I live on the Llŷn. I am another Furnished Holiday Let owner having to sell up. My home going with it. My Furnished Holiday Let is my only income. Then the reduced booking because of Welsh Government policies and the anti-incomer feelings fuelled by Welsh Government policies. I am ill with it, frightened, devastated and I'm heading towards debt. I'm 61 and I'm Welsh.'
In her response, the Finance Minister, Rebecca Evans MS said; “The Welsh Government has tried to strike a balance in terms of creating sustainable communities and allowing people to access properties to live in within those communities whilst also supporting a vibrant tourism sector”, adding “Of course, there are options for people who have second properties, whether they're second homes or holiday lets. Those options might include, for example, letting that property out as a full-time home to somebody in the local community.”
Mr Isherwood added:
“The lack of proper monitoring and impact assessment is a dereliction of responsibility. Without this, the Welsh Government cannot know whether this blunt policy is delivering its intended purpose or causing more harm than good, and cannot know whether other options are realistic for those now forced to close their local businesses.”
