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 4:05 pm on 6 July 2022.

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Photo of Peter Fox Peter Fox Conservative 4:05, 6 July 2022

Can I thank my colleague the Member for South Wales West for bringing this forward, this motion? It's safe to say that the tourist sector is fundamental to so many of our communities, so hard hit by the pandemic and deeply concerned about the potential impact of these regulations, as Tom Giffard and Sam Rowlands have eloquently shared. Indeed, as pointed out in evidence provided by a number of tourism bodies in Wales, only nine responses to the Welsh Government's original consultation on these proposals were in support of an increase in the occupancy threshold, and I despair at the lack of understanding of our important economy in Wales that these issues of house ownership and businesses are being conflated without enough due thought on that.

It's not that the industry is against the increase in occupancy threshold, but the concern is that such a large increase in the threshold, as proposed by the Government, will subject far more self-catering businesses to council tax, possibly 300 per cent of the usual rates within those communities, something that many of those businesses, which are still recovering from the effects of the pandemic, cannot afford. There are also concerns about the impact that the cost-of-living crisis may have on the tourism sector, which may further impede the ability of business to meet the new threshold. In fact, the Wales Tourism Alliance, UKHospitality Cymru and others have warned that as many as, as we've already heard, 30 per cent of self-catering businesses may close or sell as a result of these changes. Clearly, this would not only harm our tourism sector, but it would obviously put livelihoods and jobs at risk. As such, Deputy Llywydd, I do believe that these regulations must not be implemented and that Government should reassess its position.

However, if the Government and Plaid are wedded to their current position, then I fully support calls for exemptions to be introduced in line with the current petition submitted to the Senedd by a number of tourism organisations. In particular, there must be an appropriate appeals process as well as an exemption for lets limited by planning permission. This final aspect is something that has been of concern to a number of my constituents. Is it really fair that rural businesses, who have been encouraged to diversify into the tourism sector, will be hamstrung by planning rules so that they wouldn't be able to change the use of their accommodation should they wish to no longer continue in the tourism sector as a result of these rules?

To conclude, Deputy Llywydd, I urge Members to vote in favour of the motion and against these regulations, which are clearly ill thought out.