Wednesday 11 May 2022

Newspaper column 11 May 2022 - More powers to tax second homes

Since being elected as an MP, I have continually raised concerns about the imbalance that we see with second homes and holiday lets dominating many communities in Cornwall to ministers and the Prime Minister and campaigned for action to be taken to resolve this.

That is why I was so pleased to see that the Government has not only listened to my concerns but is actively clamping down on this long-standing issue, once and for all, by giving Cornwall Council the power to charge double council tax on second homes.

The new council tax rules will be introduced for second and empty homes as part of the Government’s Levelling Up and Regeneration Bill announced in this week’s Queen’s Speech.

This will see Cornwall Council given discretionary powers to levy a premium of up to 100 per cent on council tax bills for second homes that are furnished but not occupied as a sole or main residence.

For the first time ever, and thanks to this Government, Cornwall Council will be able to double council tax on unoccupied second homes, which will not only boost funding for local services, but also discourage owners to leave their properties empty for long periods of time.

This also goes much further than the current rules and means that homes left empty could also see the standard council tax rate doubled after 12 months – rather than the two years at present.

We are all too aware of the devastating impact empty second homes and holiday lets have on our communities in Cornwall and that is why this is such great news for the Duchy. This extra funding could not only be used to support, improve, and deliver local services like genuinely affordable housing, social care and children’s services, but also keep council tax low for hard-working Cornish taxpayers. It also demonstrates this Government’s commitment to investing in local communities in Cornwall.

This is something that we have wanted to see happen in Cornwall for a long time and despite many others talking about it, it is this Conservative Government that is bringing in these radical changes to make it happen.

I want to be clear. This is not about holiday lets, which we recognise play an important part in supporting the hundreds of local businesses that rely on tourism. It is about those second homes that sit empty for most of the year. That is not right or fair to our Cornish communities and presents a real threat to the viability of so many villages and towns across Cornwall. As a result of this, and to ensure that genuine holiday let owners are not impacted by these new rules, earlier this year the Government took action to close the tax loophole that some second homeowners had been taking advantage of to avoid having to pay domestic or business rates by claiming their often-empty properties were holiday lets.

 

This was wrong for not only residents, but the genuine holiday let businesses and is something I have been working with the Government to close for some time. Second homeowners will have to pay council tax, and their fair share towards public services, if they are not genuine holiday lets.

This revamped system is a big step forward. Closing the tax loophole and giving Cornwall Council the power double council tax on empty second homes are important strides to ensuring second homeowners fully contribute to the provision of local services. It is only fair that all property owners do their bit to support our communities.

However, I acknowledge there is still much more to do. Housing Minister Stuart Andrew and his team have assured me that they will work with me to look at what other measures need to be taken to address the impact of holiday lets on housing in Cornwall and the Government are committed to looking at what else we can do.

In the meantime, I will continue to work with both Cornwall Council and our Government to bring about the lasting changes that Cornwall needs to address these issues and support residents.

If I can be of any further assistance, my office is available for any constituents needing help, advice or guidance – tel. 01726 829379, email – office@stevedouble.org.uk