Nobody likes paying tax but most recognise the necessity. Ceredigion’s council tax has increased massively the last few years, and many households struggle to pay. Ceredigion has received a decent amount from the second homes levy, so maybe we’ll have a smaller increase next April, although I’m doubtful.
Most people also want lower prices for food, clothes, holidays, energy, etc. But when it comes to house prices, most homeowners want them to increase. Estate agents love a buoyant market with houses selling for sums that are higher year on year.
The Welsh Government allows local authorities (LAs) to charge up to 300 per cent extra council tax with the aim of bringing second homes numbers down and empty homes back into use. I welcome their efforts. In theory house prices would drop and fewer new housing needed. Statistics vary but I’ve seen figures for Gwynedd, drop of 12.4 per cent, Pembrokeshire down by 8.9 per cent and Ceredigion’s prices fallen by 6.4 per cent. Despite these drops the Express reports that 65 per cent of Gwynedd’s “local people are priced out of the market.”
Those locals who struggle to find somewhere affordable to live want prices right down, including rents. I‘m on their side as is Will Hayward who writes in the Guardian, “It is hard to see the house-price drop as anything other than a positive.”
Ceredigion employs an Empty Properties Officer. Many properties are empty for years. The longer they’re empty, the higher the extra council tax charged, a powerful stick. Plenty of carrots are also on offer with help available for renovation for instance. Nobody should have an excuse for leaving a property unused for years on end.
The other tax introduced by the Welsh Government is the tourism tax. Finance Secretary Mark Drakeford said on July 8: “Visitor levies are used successfully all over the world. They ensure the pressures and opportunities tourism bring are balanced fairly between visitors and residents. We want the same for Wales.”
The Welsh Government argues that these levies can pay to keep public toilets open -Llangrannog should welcome this - footpaths, beaches and, ironically, visitor centres. I can add new bus shelters plus cleaning towns and villages.
I see some problems with both these taxes. Firstly, each LA can choose whether or not to introduce them, pitting one council against another. The second problem is that councils may come to rely on the income of the second homes tax which could perversely have the effect of wanting to hang onto such housing as may be happening in Ceredigion. Figures show merely 16 properties removed from Ceredigion’s second homes register. That will hardly make a dent in the massive demand for housing needed for local people, especially young people.
The tourism tax is clearly the more controversial one. Councils are asked to consult with local people and bodies affected by this levy and create a register. Naturally, tourism agencies are opposed. Yet, visitors are only being asked to cough up “£0.75 per person per night for those staying at campsites (pitches) and hostels, excluding people under 18 and £1.30 per person per night for those staying in all other visitor accommodation types (all ages).” I think visiting families spend more on ice-creams or drinks each day. Judging by the traffic jams in Aberaeron and the heaving buses, I believe tourists won’t be put off.
But there are confusions eg regarding static caravans that could be described as second homes. The Welsh Government needs to clarify its definitions. I also wish that they had the nerve to make both these taxes compulsory. Extra income for cash-strapped LAs is needed.
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