Politics
Increased council tax premiums on second homes and empty properties

WALES’ housing minister told the Senedd increased council tax premiums have raised £17m amid concerns communities have been “disembowelled” by high numbers of second homes.
Julie James said local authorities have been able to introduce higher council tax premiums, beyond the previous 100% limit, on second homes and empty properties since April 2023.
She told the chamber 18 of Wales’ 22 councils will be applying premiums on either or both types of property from April this year, with a further two councils to follow by 2025.
Ms James said more than £17m additional revenue was raised by councils in 2022/23 to be invested in public services, including addressing homelessness and social housing.
She pointed to other affordable housing measures jointly agreed between the Welsh Government and Plaid Cymru, including plans to register all visitor accommodation.
Ms James highlighted the Dwyfor pilot and Gwynedd Council’s consultation on increased planning powers to tackle the impact of second homes and short-term holiday lets.
Mabon ap Gwynfor raised concerns about second homes pushing up property prices and undoing the social fabric of communities by forcing families to move.
“Many communities have been disembowelled by the numbers of second homes,” he said.
Plaid Cymru’s shadow housing minister welcomed latest statistics showing the number of second homes is expected to fall 9% from 24,000 in the 12 months from April.
He said Gwynedd Council raised £9m through council tax premiums in 2023/24, with £6m allocated to an action plan to provide homes for young people and £3m for homelessness.
The Dwyfor Meirionnydd MS called for a significant expansion in the availability of social housing, according to local need across Wales.
He described the Welsh Government’s aim of building 20,000 social homes by 2026 as far from adequate, warning that ministers will not hit the target at the current rate of progress.
Janet Finch-Saunders, who declared an interest due to property ownership, stressed that targeting second-home owners is not a panacea.
The Conservatives’ shadow minister said: “The homelessness now seen in Wales is a national embarrassment. Affordable homes, for many, are a major problem.
“However, the targeting of short-term holiday lets and second home owners is not the panacea … because, like it or not, they do contribute towards our local economy.”
Ms Finch-Saunders called for the Welsh Government to clamp down on the long-term “scourge” of empty homes by urging councils to use compulsory purchase powers.
The Aberconwy MS raised concerns about probate, saying it often takes two years, with Ms James agreeing but accusing the UK Government of under-funding the system.
During the statement on March 12, Ms James stressed that if you are lucky enough to own more than one house, then you should be able to pay a bit more.
She said: “It means there is more housing stock for local people, who need to work and live locally, to work in the tourist industries that are bringing those people there in the first place.
“This is a virtuous circle and not a vicious one.”
Mike Hedges, a Labour backbencher who represents Swansea East, welcomed higher council tax premiums on second homes and long-term empty properties.
“I’ve just discovered it’s now being copied in England,” he said. “So, I think that people may well have to change what they have said up till now.”
Mr Hedges called for legislation to tackle the growth of short-term lets, such as Airbnb, warning: “That really is the big problem that is going to have to be addressed.”
Ms James said plans for a licensing and registration scheme aim to level the playing field.
News
Hundreds of Pembrokeshire Council Tax defaulters in court next week

HAVERFORDWEST Magistrates’ Court will hear cases against hundreds of defendants next week as Pembrokeshire County Council seeks liability orders for unpaid council tax and non-domestic rates.
The session, scheduled for Monday (Mar 17) at 10:00am, will see a block of cases between 12:00pm and 1:00pm dedicated to council tax disputes. The council is applying for liability orders under regulation 34 of the Council Tax (Administration and Enforcement) Regulations 1992.
A total of 341 defendants are listed for non-payment of council tax, while a further 18 cases relate to unpaid non-domestic rates under Regulation 12 of the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989.
Liability orders allow the council to take further enforcement action, which may include deductions from wages or benefits, bailiff action, or bankruptcy proceedings.
The Herald will provide further updates following the hearing.
News
Reimburse charities for NI rise, say Welsh Conservatives

CHARITIES not-for-profits, and voluntary organisations in Wales face mounting financial strain due to an increase in employer National Insurance (NI) contributions, prompting calls for government intervention.
The UK Labour Government’s decision to raise employer NI contributions has drawn sharp criticism from the Welsh Conservatives, who warn that the move will place an undue burden on charities and voluntary groups. While public sector bodies such as the NHS and local councils will receive compensation for the additional costs, charities providing essential services under local authority contracts will not be reimbursed.
A survey by the Welsh Council for Voluntary Action (WCVA) found that 84% of voluntary organisations are concerned about how they will manage the NI increase.
Senedd debate on reimbursement
Next week, the Welsh Conservatives will bring forward a Senedd debate urging the Welsh Labour Government to press Westminster for financial support for Welsh charities, not-for-profits, and voluntary organisations. The motion argues these groups should be classified under the Office for National Statistics’ (ONS) definition of public sector employees to qualify for reimbursement.
Welsh Conservative Shadow Secretary for Economy, Energy, and Welsh Language, Samuel Kurtz MS, said:
“Welsh charities, not-for-profits, and voluntary organisations play a vital role in delivering public services that the most vulnerable in society depend upon.
“Labour’s decision to increase employer National Insurance contributions will have a detrimental impact on the future and viability of these organisations.
“The Welsh Conservatives are clear: Labour must ensure that Welsh charities, not-for-profits, and voluntary organisations are reimbursed for this rise in employer National Insurance contributions.”
Sector voices concern
The WCVA has also warned that the NI increase could put crucial community services at risk.
A WCVA spokesperson said: “WCVA is deeply concerned about the impact of increased Employers’ National Insurance contributions on voluntary sector organisations across Wales. Many of these organisations already face significant financial pressures, and this increase threatens to put additional strain on their resources and potentially jeopardise vital services delivered to communities.
“We have strongly urged both the UK and Welsh Governments to recognise the invaluable role the voluntary sector plays, especially in partnership with public services. We believe it is critical for voluntary organisations delivering public services to be treated equitably and included in any financial support measures, ensuring they are not disproportionately disadvantaged by these policy changes.
“WCVA welcomes the debate in the Senedd and hopes it will lead to productive discussions and practical solutions to protect the voluntary sector’s essential contribution to Welsh society.”
Motion to be debated
The Senedd motion, set for debate next week, states:
- Notes the UK Government’s increase to employer National Insurance contributions, coming into effect for the 2025-26 tax year.
- Recognises the detrimental impact the increase will have on Welsh charities, not-for-profits, and voluntary organisations.
- Calls on the Welsh Government to make urgent representations to the UK Government to ensure that these organisations delivering public services are included in the ONS-defined public sector category and are reimbursed for the rise in employer National Insurance contributions.
The debate will determine whether Welsh Labour will push for financial support to shield the voluntary sector from these additional costs.
News
Local Authority is ‘hoarding cash’ as Council Tax rises by 9.35%, says MS

DEMANDS FOR REFORM AS COUNCIL’S £83 MILLION RESERVES REVEALED
PEMBROKESHIRE residents are bracing for a 9.35% council tax rise, despite local authorities across Wales holding more than £2 billion in reserves. The increase, among the highest in Wales, comes as families struggle with soaring living costs and a series of consecutive tax hikes.

Local Senedd Member Paul Davies has called for urgent reform, criticising the Welsh Government’s Local Government Funding Formula and urging councils to use their reserves to ease the burden on taxpayers.
‘UNFAIR AND UNSUSTAINABLE’
Mr Davies said: “Under the Welsh Government, the Local Government Funding Formula remains broken.
“It cannot be right that people in Pembrokeshire face such a huge increase in their council tax while councils across Wales are sitting on over £2 billion in usable reserves.
“The Welsh Government must do more to keep council tax as low as possible by encouraging the use of reserves, improving efficiency within councils, and promoting the sharing of resources across council boundaries.”

CALLS FOR CHANGE
The Welsh Conservatives have consistently opposed large council tax increases, calling for an independent review of the Local Government Funding Formula. They argue that councils should:
- Use reserves to reduce tax rises.
- Improve efficiency by cutting unnecessary spending.
- Increase cooperation between councils to share services and lower costs.
RISING RESERVES, RISING BILLS
For years, Pembrokeshire had the lowest council tax in Wales, but after a 12.5% rise in 2024-25, it has surged significantly. Despite this, Pembrokeshire County Council holds £82.6 million in usable reserves, equivalent to 28.4% of its annual service expenditure.
In 2016-17, the council held just £47 million in reserves, rising to £83 million in 2021-22. Critics argue that this surplus should be used to relieve financial pressures rather than imposing further tax hikes.
With councils under fire for hoarding cash while demanding more from residents, pressure is mounting on the Welsh Government to overhaul funding and prevent further unaffordable rises.
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