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Welsh Government confirms vacant land tax plan

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Housing a priority: Mark Drakeford takes action on land-banking

THE WELSH G​OVERNMENT​ will put forward the vacant land tax idea to test the Wales Act 2014 powers, Cabinet Secretary for Finance Mark Drakeford has announced.

The Cabinet Secretary will set out the next steps for proposing a new Welsh tax as part of the tax policy work plan for 2018.

Since announcing a shortlist of 4 new tax ideas alongside the draft Budget in October, the Welsh Government has been examining the case for each of these.

The 4 tax ideas were: a social care levy, a vacant land tax, a disposable plastics tax and a tourism tax.

Although the vacant land tax idea will be used to test the Wales Act powers, work will also continue on each of the other 3 tax ideas.

The decision to take forward the vacant land tax idea follows engagement with stakeholder organisations, the public and across government.

A vacant land tax has been chosen both because it could help to incentivise more timely development, and because it could help prevent dereliction and aid regeneration.

Professor Drakeford said: “Housing is a priority for the Welsh Government. A tax on vacant land could prevent the practice of land banking and land not being developed within the expected timescales.

“The Republic of Ireland vacant sites levy provides a useful starting point for how a vacant land tax could work in Wales.

“The existing model in the Republic of Ireland and the relatively narrow focus of the tax make this the most suitable of the 4 shortlisted ideas to test the Wales Act.”

The Irish measure, announced in their government’s 2018 Budget, will mean that any owner of a vacant site on the register who does not develop their land in 2018 will pay the 3% levy in 2019 and then become liable to the increased rate of 7% from 1 January 2019.

If land owners continue to hoard land in 2019, they will pay 7% in 2020.

When the Welsh Government announced it was considering such a measure in October 2017, before the UK Government said it was considering a similar plan, the House Builders’ Federation raised the spectre of developers decamping en masse to England with their large projects. That threat, such as it was, has receded but the Federation of Master Builders is still concerned.

Speaking to BBC Wales, Ifan Glyn of FMB Cymru said: “If there’s a tax that’s introduced that can focus solely on land banking for financial reasons to maximise profits, we would absolutely agree with that.

“Our issue is we don’t see how this tax can differentiate between land that’s been banked for financial reasons and land that isn’t being developed or stalling for reasons outside the developer’s control.”

A further wrinkle in the system was identified by Dr John McCartney, Director of Research at Savills Ireland.

Speaking about what were then only proposals by the Irish Government to impose the vacant site levy, he said that increasing the vacant site levy to 7% could amplify “boom-and-bust cycles” in the construction sector.

Dr McCartney said that land is a raw material for developers and it is natural for them to carry a stock of development land.

“No developer will now carry a land-bank in a slow market. This means when a recovery follows developers will spend the early years on site assembly rather than the house building they could and should be doing,” he explained.

Responding to the announcement, the Welsh Conservative Shadow Finance spokesperson, Nick Ramsay AM said: “From the outset, Welsh Conservatives have opposed the ludicrous proposal for a tourism tax in Wales, one which would cause serious harm to businesses across the country.

“While we are pleased the Welsh Government has listened to us and decided against taking this idea forward, once the mechanism has been tested, we would not expect the Labour Government to return to the table with this proposal, one which has been widely criticised by the industry.

“Our vigorous campaign will continue until Labour’s Finance Secretary consigns this ludicrous proposal to where it belongs: the bin.”

Commenting on the decision to bring forward a potential vacant land tax, Mr Ramsay added: “On the surface, we welcome the fact that, as in England, the Welsh Government is exploring the viability of a vacant land tax but we await the full details of this proposal from the Finance Secretary.

“However, an important distinction must be made between land held for legitimate technical reasons such as detailed planning or a lack of skills and materials, and land which is held for purely commercial speculation.

“Speculation distorts the main purpose of releasing land for much needed development and it will be vitally important to fully consult with the sector to ensure the right balance is struck.”

 

Business

Officer to decide Milford Haven Chinese restaurant housing

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THE FINAL decision on a scheme to convert a vandalised former Pembrokeshire town centre Chinese restaurant to a flat and bedsits will be made by a senior planning officer after a compromise aimed at addressing some concerns raised was offered.

In an application recommended for approval at the February meeting of Pembrokeshire County Council’s planning committee, Mr S Sahin and Miss S Ahmed, through agent Hayston Developments & Planning Ltd, sought permission for a change of use of Grade-II-listed 20 Hamilton Terrace, Milford Haven from the former Mandarin Restaurant to one flat and eight bedsits.

The application had previously been recommended for approval at the January meeting, but was deferred pending a site visit after member of the public Jessica Clarke raised concerns about the potential impact on her mother’s neighbouring property, with issues of height and massing, surface water discharge, and shared boundary walls.

The scheme, in the town’s conservation area, was before committee rather than delegated to officers as it was recommended for approval despite being contrary to development plan policy.

A supporting statement said: “The property has historically been in use as a Chinese restaurant on the ground floor with two flats on the upper floors of the building. The ground floor use of the building ceased some 10 years ago and currently lies vacant. Due to the lack of use of the building, it is in a very poor condition and has been the subject of unfortunate vandalism particularly to the interior of the building.”

It added: “The proposal would represent a high-quality and sympathetic conversion and extension of the building, and which would make a positive contribution to the locality and conservation area status.”

Speaking at the February meeting agent Andrew Vaughan-Harries said, following the site visit, an alternative hip-roof as “a compromise” to lessen the impact on neighbours by reducing the £200,000 investment’s scale and bulk.

Speaking again at the meeting, Jessica Clarke said she, and her mother, were standing by their previous objections, saying the extra stress to her mother had caused “many sleepless nights” on the impact on her “much-loved home and garden”.

Chair Cllr Mark Carter said the application was “a tough one to determine,” with the benefits of extra homes and investment in a run-down building the town set against a potential impact on the quality of life for the neighbour.

He said, after having spoken to the chief planning officer, a way forward could be delegation for final approval going to that officer on condition the hip roof design could be formally agreed.

Members backed that compromise position, with Cllr Carter expressing his sympathy at the concerns raised by the neighbours.

 

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Business

Development above CKs Foodstores, Milford Haven, approved

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PLANS for five flats above a supermarket in the centre of Milford Haven have been approved.

In an application to Pembrokeshire County Council, CKs Foodstores Ltd, through agent Josephine Davies, sought approval for a change of use of a first-floor supermarket shop store area to five studio flats at 55-57, Charles Street, an amendment from an initial application for six flats.

The application was supported by Milford Haven Town Council.

An officer report recommending approval said a public consultation exercise was held on the initial plans, with one response from a member of the public who “did not raise any objection to the principle of conversion to flats but had concerns with regards to the impact of the proposal upon the privacy of existing nearby occupiers”.

It said that amendment to a smaller number of flats had addressed that concern.

The report added: “It is considered that the proposed layout of the flats is an appropriate response to the building, having regard to its form and scale and its location.

“New access and window openings have been proposed to accommodate the conversion of the first floor and these are considered appropriate to the proportions of the existing building and will serve to improve its design and appearance by providing variation to the building fenestration, particularly to the eastern elevation along Priory Street and to the rear onto Robert Street, in turn improving the vitality and animation at street level, uplifting a presently tired and uninspiring building in this prominent corner, town centre location.”

It went on to say: “The introduction of an entrance (which will lead to a stairwell to the commercial unit below) and patio doors onto private ‘front garden’ areas to flats 4 and 5 will significantly change this area, from the back of a commercial building/service area to a residential frontage which positively addresses Robert Street and the existing residential on the opposite side of the road.”

The application was conditionally approved by county planners.

 

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Business

Bosherston bistro alcohol license antisocial behaviour fears

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A CALL to allow the selling of alcohol as late as 10pm at a rural beauty spot former village tearoom will “create an absolute nightmare” exacerbating an already growing issue with antisocial behaviour, objectors have said.

At Pembrokeshire County Council’s licensing sub-committee meeting of February 19 members will consider an application by Sarah Jane Partridge and Robert John Secrett for a new premises licence at Bosherton Bistro, Old World Cottage, Bosherton.

A report for members says it is proposed the premises, formerly a tearoom called ‘Ye Olde Worlde Café’ would open 8am-10pm, selling alcohol from 9am on and off site, seven days a week in the village near the famed lily ponds.

Since the proposal for the site, close to the village pub The St Govan’s Inn was publicised, 13 objections were received, including Stackpole and Castlemartin Community Council.

In its submissions, the community council said it “will cause a significant public nuisance in the residential area”.

“Bosherston village is a remote village and currently has four well-established camp sites which already frequently cause late night disruption, littering and anti-social behaviour caused predominantly by intoxicated individuals.

“Residing next to the Stackpole Estate, an area of outstanding natural beauty (many areas covered by SSSI), noise generated by outdoor activities, such as the consumption of alcoholic beverages and indoor music and dancing, will generate unacceptable noise levels for residents and have an impact on local wildlife.”

It went on to say: “The provision of alcohol for such extended hours increases the risk likelihood of individuals engaging in criminal activities. Late-night alcohol sales are often associated with increased incidents of drunkenness, vandalism, and other public disorder offences. Instances of aggressive behaviour and trespass are already prevalent within the village by visitors under the influence of alcohol.

“The selling of alcoholic off-sales from such extended hours will likely pose an increased risk to public safety, exasperated by the influx of people late at night leading to confrontations, accidents, and a likely strain on local emergency services.”

Concerns raised by members of the public included “the application as currently written allows for a pub-style operation with morning drinking, off-sales, and dancing,” and “greater access to alcohol for unlimited campers cannot possibly result in anything but an increased problem with drunkenness, drink driving and antisocial behaviour,” and a call imploring “no to a licence, under any circumstances” says the alcohol licence “will not only make life for the residents in the immediate area an absolute nightmare, it will also have a hugely detrimental effect on the village as a whole and could threaten the peace and beauty of the surrounding ponds, beach and coastline.”

Another said: “One unintended consequence of this application has been increased discussions among neighbours regarding the prevalence of antisocial behaviour in the area. There is genuine concern that increased availability of alcohol may contribute to a rise in such behaviour, potentially placing significant strain on the already stretched emergency services.”

The application will be considered at the licensing committee.

 

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