Second home tax break scrapped

Local authorities in England will get the power to cut the 50% discount that exists for second homes.

Councils will be able to use the expected £65m raised to invest in local services.

But - in a U-turn on previous government proposals - second home owners will still get a discount of at least 10%.

Demand on services

Some rural campaigners want council tax not just charged at the full rate - but doubled - to stop wealthy outsiders forcing out local people in holiday areas.

But Local Government Minister, Nick Raynsford, said an appropriate balance had to be struck.

"We are aware of the problems in both rural and urban areas, where there are many second homes and properties that are left empty for a long time.

"In many areas, second home owners can contribute strongly to communities.

"However, whether homeowners occupy a property only at weekends or for a few weeks in the summer, or all year round, they still place a demand on local services.

"They also benefit from schemes for making our towns and villages cleaner and safer."

'Resentment'

He said it was "only right" that second home owners paid a "fair contribution" to these costs.

"Indeed the fact that second home owners currently enjoy a 50% discount is a cause of resentment in several areas," Mr Raynsford added.

The Welsh Assembly has already ended the concession allowing people to pay only half the normal council tax on second homes.

The tax hike was welcomed by the Local Government Association.

Recycled

LGA Chairman Sir Jeremy Beecham said: "Councils will welcome local discretion to reduce the council tax discount that are currently available for second and empty homes

"This discretion will have the best effect if additional income from empty properties is fully recycled into local services."

There are about 180,000 second homes in England and 400,000 empty houses.

Councils will still have the option to make bigger council tax exemptions in special circumstances - for example if flooding meant people had to leave their properties empty while living elsewhere.

The move will form part of the Local Government Bill to be introduced in this session of parliament.