A council tax premium paid by second home owners in Pembrokeshire is expected to net the council nearly £12.5m.
Late last year, Pembrokeshire councillors voted to drop the council tax premium on second homes from 200%, effectively a treble rate, to 150%.
Prior to that, second home owners in the county were charged a 100% (or double rate) premium.
Under Welsh Government legislation, councils can increase the premium on second homes to as much as 300%, effectively a quadruple rate.
A question submitted by a 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 and 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. First: “With reference to their itemisation on the budget documents, how much Item 58 ‘additional income’ did Pembrokeshire ‘generate’ in 2024-25 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?”
Responding, cabinet member for housing Councillor Michelle Bateman, standing in for Councillor Joshua Beynon, cabinet member for corporate finance and efficiencies, said it was budgeted to generate £12.45m in 2024-25 from the council tax premiums, but 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.
