Iain McIntosh MS has welcomed the Welsh Government's recognition that its controversial 182-day holiday-let threshold needs reviewing, but warned that tourism businesses across Brycheiniog Tawe Nedd cannot afford further unnecessary delay.

The Welsh Government has announced a consultation on changes to the rules which determine whether self-catering accommodation is treated as a business for local tax purposes. Since April 2023, self-catering properties have generally been required to be available for 252 days and actually let for at least 182 days each year to qualify for non-domestic rates.

The Welsh Government has now acknowledged that established self-catering businesses can fail to reach the threshold despite operating for almost half the year and making a significant contribution to their local economies.

Iain McIntosh MS, Member of the Senedd for Brycheiniog Tawe Nedd, said: "Any recognition that the 182-day rule needs to change is a step in the right direction, but businesses across Brycheiniog Tawe Nedd have been warning about the damage caused by this policy for a long time.

“Tourism businesses and representative organisations have already made their concerns abundantly clear. We don't need to spend months rediscovering a problem that those working in the industry have been explaining to the Welsh Government for years.

“From Brecon and our surrounding rural communities through to the Swansea and Neath valleys, tourism supports jobs and businesses throughout the local economy. Visitors staying in self-catering accommodation spend money in our pubs, cafés, restaurants, shops and attractions.

“These are genuine businesses run by hardworking people who have invested their own money and contribute significantly to the communities in which they operate. They should not be penalised by an unrealistic occupancy threshold that fails to recognise the seasonal realities of Welsh tourism.

“Rather than simply making a token adjustment to the existing rule, I want the Welsh Government to listen to what tourism businesses and the organisations representing them have already been asking for and set the threshold at a realistic and workable level.

“My concern is what happens while the Welsh Government continues consulting and reviewing. How many more genuine businesses will decide that enough is enough and cease trading before meaningful change arrives?

“Once those businesses disappear, the impact isn't confined to their owners. The loss of visitors and spending is felt by other businesses throughout our towns and rural communities.

“The Welsh Government has finally accepted that the current system isn't working properly. It now needs to listen to the industry, act with urgency and introduce a meaningful reduction that gives genuine tourism businesses the confidence to keep trading."

Mr McIntosh said he would be engaging with tourism businesses across Brycheiniog Tawe Nedd during the consultation and encouraging them to make their views known.

He added: "I want businesses throughout my constituency to take part and tell the Welsh Government directly what this policy has meant for them.

“But ministers must also recognise that the sector has already spent years making its case. This consultation should be about getting the solution right, not providing an excuse for further delay."