Cornwall Council to urge Government to stop ‘obscene’ tax loopholes for holiday home owners

Cornwall Council will urge the Government to end all tax subsidies for holiday home owners. Most members agreed to a motion by Lib Dem councilors to end tax loopholes, which have received more than £500m of taxpayers’ money in Cornwall and the Isles of Scilly over the past decade.

A full council meeting today (Tuesday 21 May) voted in favor of Cornwall Council leader Cllr Linda Taylor urging the government to end the small business rate cut subsidy and other tax incentives for “short-term rentals” , such as Airbnbs.

However, an amendment by independent councilors to limit a “significant amount” of double council tax on second homes to pay for affordable housing for local people was rejected. The new second home tax comes into effect next year.

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Lib Dem councilors Andrew George and Colin Martin tabled the motion for debate. Cllr Martin said: “While 27,000 families in Cornwall are on the waiting list for affordable housing and 800 are in temporary emergency accommodation, it is simply obscene that the Government is spending over £20m pounds a year to subsidize the use of around 12,000 properties in Cornwall. as holiday accommodation.”

Cllr George added: “Local people pay high council tax or business tax but holiday home owners have it paid for them by the rest of us. Some of the other invisible – to the public – tax breaks for holiday home owners may have been curtailed in the recent budget, but they will have no impact on holiday home growth. These tax cuts must be stopped and the millions spent should be redirected to meet the desperate need for affordable accommodation for local people.”

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His motion welcomed the Conservative government’s adoption of part of the long-standing policy of the Liberal Democrats and Mebyon Kernow, which Labor and Independent members have also followed, to introduce a new planning use class. Planning permission is needed to convert a home into “non-permanent occupation”, although the Government’s proposal would apply this to holiday lettings, not all non-permanent occupation uses.

Lib Dem councilor Jim Candy noted that 52% of accommodation in Polruan is not in full-time use, leaving the community empty, like many coastal areas in Cornwall. He said that the locals of Polperro are being forced to live in new housing in the upper part of the village because they cannot now afford to live near the port.

Cllr Tamsyn Widdon, of the Mebyon Kernow / Green group, added: “What we are not doing well enough is protecting people on low incomes in insecure housing situations who can see million pound houses being built and knowing they will never have a chance to get there is demoralizing and atrocious. What this move could do is send a signal that we support the residents who need our support, rather than multi-million dollar private businesses.

Independent councilor Tim Dwelly said, while he welcomed the move, he was not a fan of motions writing to the government “urged”. He proposed a “tangible” additional point that Cornwall Council allocates a significant proportion of the additional tax revenue for second homes (the double payment is likely to bring in around £20m) to boost the delivery of affordable and rented homes for locals.

Conservative deputy leader Cllr David Harris said the extra income from second home tax would be needed to balance council budgets as the local authority faces huge financial difficulties. However, he claimed a significant proportion of the money would go into housing as part of it. Cllr Dwelly replied that it was not guaranteed.

Council voted in favor of “Housing Justice Support”. End tax subsidies for holiday homes but against Cllr Dwelly’s amendment.