Agenda item

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 look for employment, and without work in the area, and also with shops, restaurants and banks closing, there would only be very little here for locals.

 

The observation was reiterated and it was also noted that the introduction of tourism tax and Article 4 etc. would exacerbate the situation.

 

Reference was made to the success of Menter y Tŵr, Pwllheli raising money to purchase the former Tower hotel for development as a community space, and it was noted that this responded to the problems that were the subject of this discussion.  The recommendation to adhere to a Premium of 150% on second homes was supported and it was noted that it was very important for the Council to take action on data in such a situation.  Everyone was encouraged not to change the situation until we knew what was best to do for the communities of Gwynedd. 

 

It was noted that Gwynedd was more than tourism and that the Premium funding was being used to house local people in their communities.  Reference was made to paragraph 4.4 of the report which noted that a total of 3,214 properties in Gwynedd had transferred from the Council Tax list to the Non-domestic Rate list until the end of October 2023, and it was asked whether the Council had the resources to check that those properties had been let for 182 days per year.  In response, it was noted:-

 

·         That the 182 days requirement was coming into force this year.

·         In terms of policing this, the Valuation Office Agency concluded whether a property was the subject of Council Tax or Non-domestic Rate.

·         That the Council had referred some cases to the Agency on the grounds that assessments had not been sufficiently thorough, but the Agency had adhered to its original decision.

·         That evidencing six months of letting a property was quite a requirement and maybe it was too early to see the result in full, although it was beginning to appear that things were changing.

·         That anecdotal evidence was available of people purchasing three homes during the pandemic, one to live in and two to let as holiday accommodation, and these houses would possibly come back on the market as the thresholds changed.

 

It was enquired when the Council would receive a linguistic assessment of the impact of increasing the Council Tax Premium.  In response, it was noted:-

 

·         That initial data in the report noted numbers and different trends to what had been seen in the past.

·         As the new tax had not come into force until April this year, there had not been sufficient time and enough transfers done to be able to undertake more research, but more data would certainly be available to build on this over the coming year.

 

It was noted that there were homeless people in our county and that we had to do everything within our ability to ensure that every person in Gwynedd had a home.  It was therefore even better if second homes were not second homes anymore and that they were returned to the community for people to be able to live in them.

 

RESOLVED 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.