UK seaside town’s turnaround after trying to ‘scare off’ second home owners | United Kingdom | news

Councilors in a UK seaside town have backtracked after voting to cut the council tax premium on second homes, just six months after it was increased to try to curb the impact of second-hand property residence in the local housing market.

The decision has sparked heated debate, with concerns about both the financial consequences for the council and the potential damage to the local economy.

In April, Pembrokeshire introduced a hefty 200 per cent council tax premium on second homes as part of new Welsh Government powers aimed at making housing more affordable for locals discouraging second home ownership.

However, the council has now voted to reduce that premium to 150 per cent, with many councilors warning that the original increase could cause more harm than good.

The vote, which was passed by a narrow margin of 30 to 26, came despite warnings that the cut would cost the council around £2.6m in lost revenue.

Pembrokeshire already faces a funding gap of more than £30m and council leader Jon Harvey warned that further cuts to services would be needed to make up the shortfall.

He also stressed that it was too early to assess the real impact of the 200 percent premium introduced earlier this year.

Labor councilor Marc Tierney told the BBC the decision was “disappointing”, criticizing those who “refused to listen to economic reality”.

He argued that the cut would exacerbate financial pressures and harm local services. Meanwhile, an earlier Conservative-led proposal to reduce the premium to 100% was rejected.

The decision, however, has been welcomed by local businesses and tourism groups, who have expressed concern that the high premium is driving away second-home owners and hurting the local economy.

Tourism body Visit Pembrokeshire hailed the move as a victory, noting that tourism businesses had struggled under the Welsh Government’s policy, which requires properties to be let for 182 days to qualify for non-domestic rates .

Despite the U-turn, some councilors remain steadfast in their opposition to the reduction.

Councilor Michelle Bateman warned the council could not afford to “bury its head in the sand” over the region’s financial crisis.

Others are calling on the Welsh Government to rethink its policy, with councilors calling for the 182-day permit threshold to be reduced, arguing it is putting tourism businesses over the edge.