Issue - meetings

To submit the report of the Cabinet Member for Finance.

That the Council makes no change to the Council Tax Premium for 2024/25.  That is, for the financial Year 2024/25:-

·         Cyngor Gwynedd allows NO discount on class A second homes, under Section 12 of the Local Government Finance Act 1992;

·         Cyngor Gwynedd allows NO discount and RAISES A PREMIUM OF 150% on class B second homes, under Section 12B of the Local Government Finance Act 1992.

Cyngor Gwynedd allows NO discount on homes that have been empty for 6 months or more and RAISES A PREMIUM OF 100% on homes that have been empty for 12 months or more, under Section 12A of the Local Government Finance Act 1992

The Cabinet Member for Finance, Councillor Ioan Thomas, presented a report asking the Council for formal ratification for 2024/25, of the previous decisions not to allow any discounts for second homes and to disallow discounts on empty properties, and to raise a Premium of 150% on periodically occupied dwellings and a Premium of 100% on long-term empty dwellings.

The Head of Finance then referred to the research work completed during the year to measure the impact of the Premium on individual wards and communities and noted:-

·         In recent months, a reduction had been seen for the first time in the number of second homes and self-serviced holiday units.

·         There was currently not enough data available to prove that this had resulted directly from the Premium. With that, no evidence currently existed that would justify setting a different level for the Premium in 2024/25.

Members were given an opportunity to make observations and ask questions. 

Concern was expressed that the reduction in the number of second homes and the reduction in tourism as a result led to business closures, especially in seaside towns, and it was asked what support the Council could offer local businesses. In response, it was noted:-

·         That the Research and Information Team, that gathered information from several different organisations on behalf of the Council, could bring the data received by the Economy and Community Department together to examine the impact.

·         If the number of second homes was reducing, and people lived in those houses on a permanent basis, it was hoped that those people would support local businesses all-year round.

·         The Council would examine the result of this over a long period.

The recommendation to continue charging a Premium of 150% on second homes was supported on the grounds that people moving into villages such as Abersoch did not understand our language or way of life or were making use of our local businesses, and that people from the area who had inherited houses had to leave their areas as they could not afford to keep hold of those houses.

It was enquired what information was available on the profile of those houses that had changed from holiday homes to permanent residential homes, and whether it was intended to find out if local residents had purchased the houses.  In response, it was noted that this information was not currently available.  Information regarding trends in different areas was available and undertaking this type of research would be the next step.

It was noted that people managed to obtain planning permission to demolish houses and build large houses in their place in areas such as Abersoch, but that local young people could not obtain planning permission to convert farm buildings into a home.  In response, it was noted that this was a planning matter, but the observation was accepted.

It was noted that the reduction in tourism because of charging a premium on second homes would mean that young people would have to go over the border to  ...  view the full minutes text for item 8