COUNCIL chiefs in Ceredigion are having to plug the gap in council tax income lost because of the introduction of a controversial council tax premium on second homes and empty properties.

The council introduced the 25 per cent premium on holiday homes and empty properties saying it would lead to an increase in income which could benefit local communities and could also lead to more unused or under-used properties being brought into use as homes.

The council has now admitted that it will use money raised through the premium to cover losses in council tax income after almost 200 properties registered as businesses to avoid paying council tax and the premium.

A council spokesperson said: “For the current year the deficit is required to be funded from the money raised through the premium. The premium is required to offset the losses incurred to date. In the future the losses should reduce as properties have already switched over.”

Figures from the council revealed that with 198 properties being removed from the council tax base, there had been a reduction of 0.66 per cent.

That is the first time there has been a reduction in the number of properties that pay council tax, with the change attributed to the properties removed and instead paying business rates, as well as a slow-down in the number of new homes being built.

See this week’s south papers for the full story, available in shops and as a digital edition on Wednesday