9. The Council Tax (Long-term Empty Dwellings and Dwellings Occupied Periodically) (Wales) Regulations 2022

Part of the debate – in the Senedd at 4:45 pm on 22 March 2022.

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Photo of Mark Isherwood Mark Isherwood Conservative 4:45, 22 March 2022

To justify its announcement that any self-catering business unable to meet its increase to 182 days let annually will be removed from the business rate register and may have to pay a council tax premium of up to 300 per cent, your Government stated that respondents to the consultation, respondents representing the wider tourism industry, clearly support a change to the criteria and self-catering accommodation to be classified as non-domestic, and even more surprisingly, were of the view that the majority of genuine holiday accommodation businesses would be able to satisfy increased letting thresholds. Of course, since then, we've heard outcry from the sector across Wales.

Concerns have been raised with me by actual legitimate holiday-let businesses, and include, 'I have two holiday lets in the garden of our Gwynedd home. We're open all year, are fully booked during peak season, but usually only have weekend short-break bookings during the quieter months. I fear we will end up bankrupt.'

'The six holiday cottages that we have adjacent to our home have been our business for 25 years, and for businesses such as ours that do not meet the 182 days letting, how could council tax be charged on cottages that have planning permission that states that they can never be residential?'

'Our holiday cottage is 6m from our front door, so, clearly, it's not a second home and it actually specifies this on the title deed.'

'We've been trading for the past seven years, have exceeded 182 days let in four out of the seven years.'

So, we need to know what impact assessments the Welsh Government has therefore carried out of the consequences for legitimate holiday-let businesses, businesses that were established, in many cases, in response to calls by Welsh Governments since devolution for them to diversify within the rural economy—businesses that have properties that have never and will never be used as second homes. Diolch yn fawr.