Janet Finch-Saunders MS/AS is today calling on the Welsh Government to better protect self-catering holiday firms in light of new proposals that will require properties to be available to let for at least 252 days and actually let for at least 182 days to qualify for business rates – an increase of 160%. From April 2023, a self-catering business not meeting the new threshold would incur council tax for a second home, instead of business rates. Welsh county councils will have the power to increase council tax on all these business by up to 300%.
Commenting on this latest development Janet said:
“The Welsh Government are showing themselves to be an anti-business administration with no red lines on how far they’re prepared to go in damaging the Welsh tourism industry and economic recovery.”
The Shadow Minister joins Wales Tourism Alliance (WTA), UK Hospitality Cymru (UKHC) and Professional Association of Self Caterers UK (PASC UK) in calling for the Welsh Government to heed new evidence collected in a survey of more than 1,500 self-catering businesses, across Wales. Evidence which recommends:
- Increasing the occupancy threshold for holiday let businesses from 70 to 105 days, in line with HMRC taxation rules.
- Exempting properties, which are limited by planning permission to be short term commercial lets, such as farm diversification or buildings within the boundaries of the owner’s own home, from additional council tax payments if they do not hit the 105 days occupancy target.
- Amending the occupancy threshold allowances to take account of repairs, property improvements and closure due to ill-health or caring responsibilities.
The Shadow Minister further adds:
“This administration is punishing some of the most valued sectors in Wales and expect hard working folk to sit idly as they steam role over the backbone of Welsh industry and economy. We need to see market friendly initiatives that support residents and encourage areas across Wales to promote itself to visitors. Post pandemic, this is our opportunity to showcase the best of Wales and get things moving again.”
Furthermore, Janet says:
“For years, Welsh Labour have undercut and undersold tourism in Wales. A major sporting nation, with grand national parks, spectacular coast lines and bustling bars and restaurants in our towns and cities, Wales represents a corner of the United Kingdom like no other. Poor policy direction from Welsh Labour will continue to threaten communities in Wales and if un-championed, the people of Wales could face the slowest recovery from the COVID-19 Pandemic in the Isles, due to an unimaginative administration in Cardiff Bay.”
