Big changes are afoot in Pembrokeshire! The council has given the green light to reduce the second homes council tax premium again, making it a bit easier for second home owners, but sparking debate. Last year, the premium was slashed from 200% to 150%, and now, it’s going down to 125%. This decision came with a close vote, squeezing through by just one vote!
There’s a lot riding on this. Councillor Mark Carter initially pushed for an even bigger cut down to 100%, but it was shot down due to fears of a hefty £2.8m budget pressure. That translates to about a 3% rise in general council tax levels if not adjusted elsewhere. With budget considerations taking centre stage, the finalised 125% premium still leaves the council with a £1.4m funding gap to now juggle.
Supporters of trimming the tax for second home owners are concerned about fairness, arguing these owners often don’t use local services as much as permanent residents but still face sky-high charges. Yet, others believe it’s crucial to protect the interests of the majority of local taxpayers.
This is all part of an ongoing conversation about how to balance fair taxation with the needs of a popular tourist region. Currently, second home owners must let their properties for 182 days a year to avoid the premium under Welsh Government rules. There could be tweaks on the way, like allowing owners to average those 182 days over multiple years or counting up to 14 days of charity-let days towards the target.
With a recent council report noting that 13.8% of homes in Pembrokeshire don’t have usual residents, and some areas exceeding 40%, these discussions are more vital than ever. Have your say before the consultation closes on 20th November!
What’s your take on these changes? Should second home owners pay more to support local services, or is a lighter touch the way to go? Let us know in the comments! 🏠❤️