Thursday, 12 May 2022

Column 12 May 2022 - More powers to tax second homes

Over the past couple of weeks Parliament has been prorogued ahead of the Queen’s Speech. A Queen’s Speech marks the symbolic beginning of the beginning of a new session of Parliament, and Her Majesty the Queen will give a speech stating the Government’s priorities for the next session.

Despite the issues around the COVID-19 pandemic, the last session of Parliament was an incredibly productive one, that saw nearly 20 new Acts of Parliament passed, delivering on many of the Government’s Manifesto commitments from the last General Election. These included our ground-breaking Environment Act, Animal Welfare Act, Nationality and Borders Act; the Police, Crime, Sentencing and Courts Act, and our Health and Care Act. As we move on from Brexit, these acts have allowed us to make the major changes we need to take back control, innovate and be nimble where we could not be before as part of the EU.

I now look forward to the Queen’s Speech this week to see the next change of our Government’s programme of legislative reform. The speech itself fell after the deadline for submitting my column so I can’t go into detail on it now. However one major item that was confirmed over the weekend was that the speech will contain an act giving new powers for local authorities in England, like Cornwall Council to be able to double council tax on unused second homes to boost funding for local services.

This is something I have long-campaigned for, both during my time as MP for Truro and Falmouth but also when I was a Cornwall Councillor. Having been an elected representative at both levels of government I fully understand how beneficial it would be for local authorities like Cornwall Council to be abler to have these powers, which will generate income that can then be put direct into running and improving local services. This is an argument I have been making, along with my Cornish MP colleagues, for some time.

The powers announced in the Queen’s Speech will give councils the ability to levy a premium of up to 100% on council tax bills for second homes – which are furnished but not occupied as a sole or main residence – empowering them to determine how best to raise additional revenue for their communities.

It has also been confirmed that another big issue that we have in Cornwall, empty homes, will be addressed, as homes left empty could also see their standard council tax rate doubled sooner – after 12 months rather than two years – in a move that will discourage owners from leaving properties vacant for a long time, while injecting money back into local areas.

In addition to having the power to apply greater premiums at a level of their choice, Local Authorities will enjoy flexibility on how to spend the funds raised and can decide to prioritise keeping council tax bills low for local households. This will also help deliver the infrastructure that communities really need, including genuinely affordable housing, social care and children’s services.

 Along with the announcement of the closure of the holiday let business rates loophole earlier this year, I am pleased to see this Government once again listening to concerns raised from Cornwall and committing to take action. The growing numbers of empty homes, many of them second homes, across Cornwall, are a legitimate concern when it comes to keeping our communities vibrant all year round and I hope you will agree with me that this is good news for us all.

As ever, if you need my assistance with anything then my team and I are here to help. Please get in touch with me by email at Cherilyn.mackrory.mp@parliament.uk , or by telephone on 01872 229698. My regular constituency advice surgeries are held in a covid-safe environment at my office, so please do get in touch should you wish to meet me about any matters that I can be of assistance with.

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