Local Taxes

1. Questions to the Minister for Finance and Local Government – in the Senedd on 15 September 2021.

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Photo of Siân Gwenllian Siân Gwenllian Plaid Cymru

(Translated)

8. Will the Minister explain the purpose of the current consultation on local taxes for second homes and self-catering accommodation? OQ56822

Photo of Rebecca Evans Rebecca Evans Labour 2:13, 15 September 2021

This consultation implements one of the actions set out in our three‑pronged approach to address the impact of second homes on communities in Wales. It seeks views on potential changes to local taxes, including local authorities' powers to apply council tax premiums and the criteria for defining self-catering accommodation as non-domestic property. 

Photo of Siân Gwenllian Siân Gwenllian Plaid Cymru

(Translated)

The housing crisis, including the second homes crisis, is having a destructive impact on communities the length and breadth of Wales. I welcome this consultation of course, but it would be only part of the solution in tackling the issues contained within this consultation. I'm sure you'd agree with me on that. But, in terms of the consultation itself, when exactly will the recommendations that are drawn up as a result of this consultation be implemented? Can you give us an idea of the timetable around this consultation and what the next steps will be, because we must take urgent action? I'm sure you would agree with that too.

Photo of Rebecca Evans Rebecca Evans Labour 2:14, 15 September 2021

Yes, I agree that this is only part of the picture and that action is required urgently, because we know that there are communities in Wales really feeling the pressure in this regard. It's why we've taken some early action, such as the additional 1 per cent on the higher rate of land transaction tax, for example, but there's work going on at this point as well in terms of developing the Welsh language strategy for communities, and part of that, really, is about ensuring that people are able to stay in their Welsh language communities and be able to buy a home there.

So, there are several things happening at once. It's not my intention to spend a long time deliberating on the views that come forward. I know that we're going to have a really wide spectrum of views, from people who are completely opposed to any changes, to people who would prefer us to have an approach that made it even easier to buy second homes, right the way through to people who have a view on the other end of the spectrum. Obviously, all views are welcome and we will be considering them, but I don't want to spend more time than is necessary. Obviously, I understand the urgency of this particular issue.

Photo of Janet Finch-Saunders Janet Finch-Saunders Conservative

Diolch, Llywydd. Minister, after one of the busiest seasons ever experienced in Llandudno and north Wales, following the dreadful pandemic, we should instead be thanking our holiday-let operators for the immense economic benefit that they bring to our communities and our tourism offer. This benefit was even recognised in Dr Simon Brooks's report, and must be accepted by this Welsh Labour administration. I know I'm not alone in rejecting the constant flow of negative and belittling comments aimed at our second home owners and self-catering accommodation owners. Many now see this as the Plaid Cymru nationalist stance of being anti-tourist, anti-business and anti-ambition, and quite frankly, Plaid, you need to get another pea in your whistle.

Second homes and holiday lets make up around 3 per cent of housing stock in Conwy, with around 1,182 properties estimated to be eligible for chargeable council tax premium during 2020-21. Local authorities have rightly been hesitant to increase these premiums—a good move for our economy. This tool was actually intended to bring long-term empty properties back into use, but this has not been achieved, because as you well know, Minister, the Government targets have been missed year on year.

The current regressive stance taken by the Welsh Government against our private landlords, however, is only now serving to push them towards the more lucrative market of holiday-let accommodation. The question that does need to be asked today is: what plans does your Government have to reincentivise our private landlords, so as to allow them to remain in the private sector rather than moving over into holiday-let accommodation? Diolch, Llywydd.

Photo of Rebecca Evans Rebecca Evans Labour 2:17, 15 September 2021

First of all, I'd like to begin by recognising the tremendous importance of the tourism sector to many parts of Wales. It's the absolute lifeblood of many communities and we want to be sure that we provide everybody with a warm welcome when they come to visit us in Wales, so that they want to come back, and do so year after year. I also think it's important that we see seek to have balanced communities, so communities where people can, as I've said in this session already, remain in their communities and find an affordable home, but also in communities where tourism is really important that we're able to ensure that we have plenty of offer for those tourists as well. So, it's a difficult balance, but I think some of the work that we're doing around the pilot work, looking for communities to work with us there will be important, because all communities are unique in so many ways.

Private landlords do have an important part to play in terms of our housing stock in here in Wales. It's a positive choice for people who want to rent and we've done good work in the past years in terms of Rent Smart Wales and the work that we've done there to try and ensure that the offer from private landlords is a quality offer for individuals here in Wales, and to ensure that that sector does provide a really important and useful part of the housing options for people for whom renting is the right choice. It is a positive choice for many people, so we need to ensure that it's a good experience for them.