North Wales MS Mark Isherwood has called on the Welsh Government to respond to the request made by the Wales Tourism Alliance in their letter to the First Minister for a commitment to a date for a review of the 182-day policy.
Speaking in yesterday’s meeting of the Welsh Parliament, Mr Isherwood, who has previously warned that legitimate holiday let business owners are being forced to close because of the Welsh Government’s 182-day second home council tax rule, said a survey of over 1,500 self-catering businesses has now revealed that 42 per cent are either putting their property on the market, or considering it.
Questioning the Cabinet Secretary for Finance, Constitution and Cabinet Office over what consideration she has given to Council Tax reform in Wales, he said:
“The ‘182-day rule’ means that legitimate, well-established, local self-catering businesses have become liable to pay Council Tax, sometimes at a premium rate. When the secondary legislation introducing this threshold was proposed, the sector warned that this would harm legitimate Welsh businesses and damage the fragile ecosystem that is the visitor economy.
“Over 1,500 self-catering businesses have now responded to a new survey commissioned by Wales Tourism Alliance, UKHospitality Cymru and the Professional Association of Self Caterers UK. Only 25 per cent said they would hit 182 days this year, 70 per cent are discounting to try to hit 182 days, and 42 per cent are either putting their property on the market, or considering it, with the likelihood that they'll be purchased as second homes.
“How do you therefore respond to the request made by the Wales Tourism Alliance in their letter to the First Minister for a commitment to a date for a review of the 182-day policy, and to discuss what further exemptions from Council Tax premiums are needed in order for a balanced Welsh visitor economy to survive and thrive?”
Responding, the Cabinet Secretary said there are no plans to undertake a review of the policy.
She said:
“The rules have only recently come in. I think it's important that they do bed in. I don't want the sector to be falsely labouring under the assumption that there is going to be an immediate review when, actually, the efforts of the sector should be looking to either meeting those 182 days or considering the options that are available to them, and options are available to them.”
Speaking after the meeting, Mr Isherwood said:
“Legitimate Welsh businesses and the Welsh visitor economy need and deserve so much more than this Cabinet Secretary’s cloth-eared responses. By dismissing their evidence-based requests, she will share direct responsibility for the economic damage and personal harm that will result.”
