Fay Jones MP & James Evans MS have both raised their concern over Welsh Government proposals to clamp holiday lets with higher taxes.
Currently, a property must be available to let for 140 days and occupied for 70 days to qualify for business rates. The new proposals dictate that properties must be available to let for at least 252 days and occupied for 182 days to qualify for business rates instead of the newly proposed council tax. Many of our tourism hotspots are seasonal holiday lets, dependent on the seasonal clock of local attractions. It is not always financially viable for these smaller businesses to be open all year round.
The maximum level at which local authorities can set council tax premiums on second homes and long-term empty properties will be increased to 300%, which will be effective from April 2023. Councils will be able to set the premium at any level up to the maximum,
Speaking during a Senedd plenary session James Evans MS said that businesses could go bust if they could not cover the 300% council tax raise.
James and Fay have listened to countless business owners across Brecon and Radnorshire who have voiced their concerns and stated that they will have no choice but to raise their prices to cover the increase in costs of keeping their businesses open for longer periods of the year. The concern is rooted in the possibility that tourists drawn to large local events such as the Royal Welsh Show and Hay Festival will look to stay in properties over the border in England, where the additional costs will not be in place. For our small businesses in Brecon and Radnorshire, this is extremely concerning. Many businesses may have no alternative but to sell up. Businesses put back on the market may face planning restrictions, these properties are often larger houses, finished to a high spec and therefore unaffordable to the first-time buyer.
Fay recently met with Brecon Beacons Tourism who are equally concerned, she said "We urge the Welsh Government to reconsider the proposal. It requires greater thought and consideration to prevent harming our small businesses and rural tourism economy"
A petition has been shared on social media to agree 105 day occupancy, not 182 days, to distinguish holiday let businesses from second homes which can be signed here
