County set to receive £12.5 million from council tax premium on second homes and empty properties

Bruce Sinclair, Local democracy reporter 

A Welsh county, which is a hotspot for second homes, is expected to receive nearly £12.5m from the council tax premium paid by second homeowners and owners of empty properties.

In 2024 council figures revealed there are 3,271 properties in the county registered as second homes, down from 3,364 in 2023.

Late last year, Pembrokeshire councillors voted to drop the council tax premium on second homes from 200 per cent, effectively a treble rate, to 150 per cent.

Prior to that, second-home owners in the county were charged a 100 per cent (or double rate) premium.

Under Welsh Government legislation, local authorities are able to increase the council premium on second homes to as much as 300 per cent, effectively a quadruple rate.

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Council meeting

A question submitted by member of the public Sian Evans, heard at the May 8 meeting of Pembrokeshire County Council, said: “Item 58 of the Guidance on the Implementation of the Council Tax Premiums on Long-Term Empty Homes and Second Homes in Wales states: ‘A local authority will be able to retain any additional funds generated by implementing the premiums… amendments to the calculation of the tax base will be made to facilitate this’.

“To be clear, the income referred to is not the income collected as a result of the premiums but because of the resulting increase in the tax base.”

She asked for responses on two points.

“With reference to their itemisation on the budget documents, how much item 58 ‘additional income’ did Pembrokeshire ‘generate’ in 2024 – 2025 by ‘implementing the premiums’ in this way?”

And secondly: “Are there any safeguards in place to protect against the danger that tax premiums are set solely for the purpose of raising the tax base?”

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'Consequence'

Responding, Cabinet Member for Housing, Cllr Michelle Bateman, standing in for Cllr Joshua Beynon, Cabinet Member for Corporate Finance and Efficiencies, said it was budgeted to generate £12.45m in 2024-2025 from the council tax premiums, the actual overall figure has yet to be confirmed.

On the second question, Cllr Bateman said the premium was not set for raising the tax base, but was “simply a consequence,” adding that officers would be happy to meet with Miss Evans to discuss the matter in further detail.