6. Motion to annul the Non-Domestic Rating (Amendment of Definition of Domestic Property) (Wales) Order 2022

Part of the debate – in the Senedd at 4:02 pm on 6 July 2022.

Alert me about debates like this

Photo of Mabon ap Gwynfor Mabon ap Gwynfor Plaid Cymru 4:02, 6 July 2022

(Translated)

Thank you for that contribution. No, I don't accept that. This policy aims to close the loophole; that's the point. The intention of this Order that you as Conservatives are seeking to annul today is to close that loophole, as I mentioned, in the law.

I think most rational people would agree that there is something fundamentally wrong about a situation where thousands of my constituents—key workers, nurses, firefighters, shop workers, council workers—live in unacceptable conditions or can't access a home at all locally, whilst those who can afford a second home in those communities can play the system for their own benefit whilst more and more homes in residential areas are lost, to be used as Airbnbs and so on. It's Airbnbs and those platforms that are threatening the sustainability of the holiday rental sector. Mature businesses that have been contributing to the economy are now seeing their existence at stake because of the huge increase, with a large number of homes being bought as assets to be let on platforms such as Airbnb. This undermines well-established businesses.

In addition to this, there is no kind of regulation on these new platforms. To all intents and purposes, anyone can let property on these platforms whilst well-established companies using responsible providers who have a social conscience, like Dioni, have to reach particular standards before being let. So, we shouldn't look at the 182-day policy in isolation; this policy of 182 days is part of a broader package—in this case specifically, the announcement on Monday on the establishment of a new statutory licensing system for holiday lets. The sector has been calling for this for years, and now, as part of the co-operation agreement with Plaid Cymru, we are seeing this being delivered at last.

I welcome the commitment that the Minister has already given in her written statement on 24 May in introducing the Order to retain the package in its entirety under review, including how these latest measures can be used as they're implemented to deliver the objective most effectively. As Adam Price said, co-operation between parties and the need to take action swiftly in order to make a practical difference and to introduce immediate solutions to failings that have been in place for decades in the housing market does require compromise and pragmatism—compromise on using subordinate legislation in order to act quickly, whilst recognising the broader restrictions in terms of council tax, and pragmatism in term of continuing to refine as we move forward, including before this Order comes into force next April.

I also welcome the commitment from the Government to (1) look at specific exemptions for real holiday accommodation before the Order comes into force next April, and (2) to reform the guidance in order to confirm that councils can remove the council tax liability in some circumstances. This all can be done without throwing everything through the window and before the changes come into force. I therefore call on Members to reject the motion today.