Councillors in Blackpool have clashed over how to tackle contentious regulations that could damage the town's tourism industry.
The regulations, which took effect on April 1, 2023 but are only now creating headaches for operators, stipulate that holiday lets must be accessible for no fewer than 140 days annually, with each property needing to be rented for at least 70 days to qualify for business rates instead of council tax.
Property owners who fail to satisfy these tougher criteria face potential closure and substantial council tax demands, as they will lose previously available exemptions.
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Currently, 65 firms in Blackpool are challenging these regulations through appeals.
During Blackpool's most recent Full Council session, the town's Conservative faction, spearheaded by hotelier Councillor Gerard Walsh, put forward a motion calling on the present Government to amend the rules.
The proposal, supported by Councillor Julie Sloman, demanded immediate intervention to tackle what they characterised as a "one-size-fits-all" approach that could cripple Blackpool's visitor economy.
The motion was voted down by the leading Labour group..
Councillor Neal Brookes, Blackpool Council's Deputy Leader, explained the motion was opposed not to dismiss it outright, but to provide additional time to formulate a proper response.
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But Cllr Walsh said: "Labour's refusal to support this motion is a slap in the face to the small family-run holiday businesses that built Blackpool's name. These rules might work for London or Manchester, but they're economically illiterate for a seaside town with a short tourism season. We need common sense, not box-ticking bureaucracy."
Cllr Sloman added: "The Government needs to understand that illness, bereavement, or even bad weather can wipe out weeks of bookings for our local operators. For Labour to vote this motion down shows a shocking lack of empathy and understanding for the real-world pressures our tourism economy faces."
Despite being introduced by the previous Conservative administration, the contentious regulations remain in place under Sir Keir Starmer's Labour leadership.
Blackpool's holiday accommodation sector, largely comprised of large Victorian terraced houses converted into multiple units and managed by resident landlords or small independent businesses, provides affordable family holidays and is central to the local tourism industry.
The proposed motion highlighted that the new regulations fail to consider the operational challenges faced by towns like Blackpool, where accommodation providers grapple with a highly seasonal influx of tourists. The motion cautioned that the legislation might lead to widespread reclassification of holiday flats as residential properties, resulting in higher council tax bills and potentially driving owners out of the tourism sector.
The motion had urged the authority's leader to contact Angela Rayner, Secretary of State for Housing, Communities and Local Government, to request a comprehensive review of the new rules. It proposed lowering the minimum letting requirement from 70 days to 50 for areas affected by seasonality, introducing exemptions for personal hardship, and differentiating between large multi-flat holiday accommodations and individual short-term rentals.
Cllr Brookes, deputy leader of the Labour-controlled Blackpool Council, commented: "I'm disappointed, actually, that we're going to be asking council to oppose this motion, basically because we've had insufficient time to look at the consequences, where it to be successful.
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"There is too much here that we don't know about.
"We want to go through the scrutiny process. The councillor is right, we are the leading resort in the country so it's important we get this right, if we are going to be the standard bearer asking the Government to change it.
"So we are going to vote against it, on that basis."