Holiday home Council Tax premium to go up to 75 per cent

Councillors agreed at their meeting on Thursday, September 24 to raise the council tax premium to 75 per cent above the normal Council Tax rate.

But, it could have been worse for holiday/second home owners, as a Labour amendment to take the premium up to 100 per cent, doubling the bill, was voted down.

The original motion to take the premium up to 75 per cent was put forward by Plaid Cymru group leader, Councillor Elwyn Vaughan as it could increase Powys County Council’s council tax by £350,000.

At the moment, a 50 per cent Council Tax premium that affects 1,262 holiday/second homes and contributes around £700,000 to the council coffers is in place.

Councillor Sarah Williams said: “We support the motion and want to take it further to 100 per cent.

“People who can afford second homes are people who can afford these premiums.

“If they don’t, all well and good, our younger people are able to buy properties in the area.

“A lot of these people are using loopholes to avoid paying council tax.”

Councillors Claire Mills and Lucy Roberts argued that holiday and second home owners contribute to the local community by buying local, visiting pubs and restaurants during their stay.

Councillor Aled Davies said: “Currently these home owners are paying 150 per cent council tax, some of these owners do become part of the community.

“An increase in premium may cause some owners to consider other premium avoidance options and could create a risk to the future collection.

“It will be a driver for people to register for business rates rather than council tax, our income as a council could fall significantly.”

Adults Social Services portfolio holder, Councillor Myfanwy Alexander said: “All of our rural communities are vulnerable and fragile, all of our young people struggle to get their foot on the ladder.

“There is collateral damage when young Welsh speaking people can no longer afford to live in places where it is a community language.”#

She said in parts of Wales, some villages were effectively turning into ghost towns in the winter, due to the amount of holiday homes there.

Councillor Edwin Roderick believed that second home owners moved to rural areas to be safer during the pandemic.

Head of Legal Service, Clive Pinney, reminded councillors that it would be “best practice” to hold a consultation on the changes and equality impact assessments would need to be made, before the decision comes into force.

Councillor Vaughan, said: “I must take issue with the comments a couple of people made, that somehow thinking that people in holiday homes for four weeks a year spend a fortune in the local community.”

“Common sense says that a family occupying a house for 52 weeks a year, spending money in the shops, garages, cafes and pubs, is substantially more.

“Let’s get to planet earth and reality and stand up for young people and our communities.”

The amendment for 100 per cent was lost by 21 votes for to 30 against and one abstention.

The second vote on Cllr Vaughan’s motion was passed by 33 votes for , 17 against and one abstention.