HOLIDAY home owners face a 25 per cent hike in next year’s Powys County Council Tax bills.

Councillors agreed at their meeting on Thursday, September 24 to raise the council tax premium to 75 per cent above the normal Council Tax rate.

But, it could have been worse for holiday/second home owners, as a Labour amendment to take the premium up to 100 per cent, doubling the bill, was voted down.

The original motion to take the premium up to 75 per cent was put forward by Plaid Cymru group leader, Cllr Elwyn Vaughan (Glantwymyn) as it could increase Powys County Council’s council tax by £350,000.

At the moment a 50 per cent Council Tax premium that affects 1,262 holoiday/second homes and contributes around £700,000 to the council coffers is in place.

Cllr Sarah Williams (Aber-craf – Labour) said: “We support the motion and want to take it further to 100 per cent.

“People who can afford second homes are people who can afford these premiums.

“If they don’t, all well and good, our younger people are able to buy properties in the area.

“A lot of these people are using loopholes to avoid paying council tax.”

Cllrs Claire Mills and Lucy Roberts argued that holiday and second home owners contribute to the local community by buying local, visiting pubs and restaurants during their stay.

Cllr Aled Davies (Llanrhaedr-ym-Mochnant & Llansilin – Conservative), said: “Currently these home owners are paying 150 per cent council tax, some of these owners do become part of the community.

“An increase in premium may cause some owners to consider other premium avoidance options and could create a risk to the future collection.

“It will be a driver for people to register for business rates rather than council tax, our income as a council could fall significantly.”

Cllr Davies went on to criticise Cllr Vaughan for using council debates as a “platform” for furthering his own political career. Cllr Vaughan hopes to stand as a Plaid Cymru candidate on the Mid and West Wales regional list at next years Welsh Parliament elections.

Cllr Davies also attacked the Plaid Cymru record at local authorities where they are the ruling administration such as Cerdigion and Ynys Môn.

He pointed out that premiums paid on holiday/second homes there are half those charged in Powys, and also complained that Labour run councils in South Wales don’t charge the premium.

“Punitive taxation is not the solution when addressing local housing need,” said Cllr Davies.

Adults Social Services portfolio holder, Cllr Myfanwy Alexander (Independent – Banwy), believed holiday/second homes affects the Welsh language in a bad way.

Cllr Alexander, said: “All of our rural communities are vulnerable and fragile, all of our young people struggle to get their foot on the ladder.

“There is collateral damage when young Welsh speaking people can no longer afford to live in places where it is a community language.”

She added that she knew of cases in her ward where people had failed to find a house and had ended up living over the border in England.

Cllr Alexander also pointed out that in parts of Wales, some villages were effectively turning into ghost towns in the winter, due to the amount of holiday homes there.

Cllr Edwin Roderick (Maescar/Llywel – Independent) added: “We’ve seen more of this in the Brecon Beacons than anywhere.

“Covid has hastened this.”

He believed that second home owners moved to rural areas to be safer during the pandemic.

Cllr Roderick “You only look at the graveyards, their names are never on the grave stones, they always go back to be buried, they never stay here and that is why we have to do this.”

Head of Legal Service, Clive Pinney, reminded councillors that it would be “best practice” to hold a consultation on the changes and equality impact assesments would need to be made, before the decision comes into force.

Before the final vote Cllr Vaughan, said: “I must take issue with the comments a couple of people made, that somehow thinking that people in holiday homes for four weeks a year spend a fortune in the local community.”

“Common sense says that a family occupying a house for 52 weeks a year, spending money in the shops, garages, cafes and pubs, is substantially more.

“Let’s get to planet earth and reality and stand up for young people and our communities.”

The amendment for 100 per cent was lost by 21 votes for to 30 against and one abstention.

The second vote on Cllr Vaughan’s motion was passed by 33 votes for , 17 against and one abstention.

Notice of Motion – Holiday Homes

Powys has circa 1262 holiday/second homes within the Council Tax list paying the current premium of 50 per cent which generates circa £700,000

In view of the huge social concern about the effect of high numbers of such properties in many communities Council calls:

for the current premium to be increased to 75 per-cent in the next financial year thus generating an extra circa £350,000 for the authority

and for the authority to work with other rural authorities through the WLGA (Welsh Local Government Association) to ensure that Welsh Government and Valuation Office have a consistency of approach in assessing Business Rates applications for such properties in that they have to be let for 140 days in order to have a genuine business.