Second homes council tax premium to drop in tourism hot spot

Bruce Sinclair Local Democracy Reporter

Second home-owners in a Welsh tourist hot spot will pay a lower council tax premium next year after a call to drop the rate was passed by just one vote.

A council tax premium is applied to the main council tax bill, the precepts from the Dyfed-Powys Police and Crime Commissioner and the town and community council elements of the overall bill.

Late last year, Pembrokeshire councillors had voted to drop the council tax premium on second homes from 200 per cent on top of the standard bill, effectively a treble rate, to 150 per cent.

Prior to that, second-home owners in the county were charged a 100 per cent premium.

Following backing from the council’s Cabinet, a full meeting of Pembrokeshire County Council, on October 9, was recommended to support the second homes premium remaining at 150 per cent and a long-term empty properties rate remaining at 300 per cent for properties empty for more than two years.

Warning

The percentage of homes with no usual resident in Pembrokeshire, made up of holiday lets, empty homes and second homes, is 13.8 per cent, down from a high of 14.6 per cent, a report for members said.

Four communities in the county, Dale, Lamphey, Newport, and The Havens, have a percentage in excess of 40 per cent and a further 14 have a rate of 25 per cent or higher, the report added.

Speaking at the meeting, Cabinet Member for Corporate Finance Efficiencies Cllr Alistair Cameron said a drop in the second homes premium to 100 per cent, as recommended by the Council Tax Working Group would result in a budget pressure of £2.8m for 2026-27, equivalent to a three per cent hike in general council tax levels.

An amendment to the 150 per cent rate was put forward by Cllr Mark Carter, seeking a drop to 100 per cent, seconded by Cllr Di Clements.

Leader Cllr Jon Harvey had warned: “The reality is if this amendment is approved, we’ve got to find another £2.8m, either cuts or we put the council tax up by that amount. I would rather be looking after the majority of council tax-payers in Pembrokeshire rather than supporting this 100 per cent.”

Cllr Phil Kidney had, during the meeting, given warning that should the 100 per cent amendment fail, he would be proposing a reduction to 125 per cent.

“Totally unfair”

One of those against the status quo was Cllr Mike Stoddart, who said: “Very simply I don’t agree we can chisel money out of these people so we don’t have to go to our people; we’re acting to our own electoral advantage. It’s totally unfair to pay double the council tax and using the services a lot less.”

Cllr Carter’s 100 per cent call was defeated by 21 votes for, 29 against, and two abstentions, leading to Cllr Kidney’s amendment being put forward, passing by just one vote; 26 for and 25 against.

Members later unanimously supported the empty property rate remain at the current level.

At 25 per cent drop in equivalent to a funding shortfall of some £1.4m.