Proposals to reform Welsh council tax have been branded "anti-English", as businesses warn the move could result in jobs being lost. The Welsh government, on the other hand, says the new rules will "give more flexibility to local authorities and provide more support to local communities".
The Welsh government outlined the plans last month. They could see owners of holiday homes in Wales paying more council tax, owing to a stricter set of criteria for them to be eligible for business rates rather than regular council tax.
At present, self-catering properties must be available to let for at least 140, and actually let for at least 70, days per year to be eligible for business rates, which are cheaper than council tax. Under the new rules, self-catering properties would need to be available to let for at least 252 days per year and actually let for at least 182.
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If properties do not meet the criteria, they are considered second homes, rather than genuine holiday lets. The plans include a separate proposal to allow Welsh county councils to triple the council tax bill on second homes.
Industry leaders have warned that this could 'decimate' Welsh tourism, which could result in less accommodation on offer next time you want to book a staycation in Wales. It could also see prices driven up in Welsh holiday lets.
The change, the Welsh government says, is intended "to provide a clearer demonstration that the properties concerned are being let regularly as part of genuine holiday accommodation businesses making a substantial contribution to the local economy". However, as you might expect, owners of such properties are not happy.
Ashford Price, owner of the National Showcaves Centre for Wales, claimed there is now "a growing feeling by some in England that the Welsh Government is anti-English, and also anti-tourism". He told North Wales Live: "If this Welsh tourism tax does come about, how many of our potential customers will simply vote with their feet and go to Devon, Ireland, or Scotland rather than pay yet another tax at a time when they are trying to cope with a personal cost of living crisis?"
He added: "Wales has much to lose if this tax is implemented. Surely we need to encourage tourists to come to Wales, not tax them for coming!"
The Welsh government, on the other hand, says the move comes after a consultation process that included business, the tourism industry, and communities. Rebecca Evans, the Labour and Co-operative party minister for finance and local government, said last month: "These changes will give more flexibility to local authorities and provide more support to local communities in addressing the negative impacts that second homes and long-term empty properties can have.
"They are some of the levers we have available to us as we seek to create a fairer system. We will continue to make every effort to increase the supply and availability of houses, as shown by the £1 billion of funding to build 20,000 low-carbon social homes, contained in the budget I published at the end of last year."
Sian Gwenllian, the Plaid Cymru member of the Senedd who oversees the party's co-operation with Labour, said: "It is clear that we as a country are facing a housing crisis. So many people cannot afford to live in their local areas, and the situation has worsened during the pandemic.
"These changes will make a difference, enabling councils to respond to their local circumstances, and start to close the loophole in the current law. It's a first, but important, step on a journey towards a new housing system that ensures that people have the right to live in their community.
"Through the co-operation agreement, we are committed to introducing a package of measures to tackle the injustices in the housing market. Today's announcement is just one part of that wider package. Second homes are a symptom of a wider problem - a market that treats property, not as a home, but as a way of making a profit. By working across the parties in the Senedd, we will introduce more measures, as soon as we can, to make house prices and rents genuinely affordable for people."
