Politics
Council tax increase on second homes leaving owners in debt

A SECOND homes council tax campaign group has said the “unaffordable” premium for such properties is forcing their owners into debt, a letter sent to Pembrokeshire County Council has said.
The second homes council tax premium in Pembrokeshire increased to 200 per cent for this financial year, from a previous 100 per cent, meaning such properties effectively now pay a treble rate.
Properties used as holiday lets were exempt from the premium if they could be let over a number of days per year, which has risen to 182, up from a previous 70.
Since the premium rise, second home-owners have been faced with hefty council tax bills, as much as £15,000 in some cases.
The letter, signed by 100 members of the Pembrokeshire Council Tax Premium support group, says: “In April when most of us received our council tax bills with their grossly inflated rates. Most of us have a council tax bill of £5,000 to over £12,000 for 2024/2025. This is unaffordable.
“Given that your stated goal is to make us sell our properties, it is logical for you to have make the tax unaffordable.
“Only 29 per cent of our members received notice of the increase, and no effort was made to contact owners outside the area as is advised. Most knew about the premium increase when they received their 2024/2025 council tax bill.
“This oversight has made it impossible to ‘consider the impact of a higher premium on their own personal financial circumstances and make choices regarding their property’.”
At the March meeting of Pembrokeshire County Council, members heard the county is facing nearly £9m in council tax arrears, in part due to an “unprecedented bloc” of some 90 homes unable to meet the 182-day holiday letting guidelines, leaving their owners liable for second homes premium rates.
At that meeting the-then Cabinet member for corporate finance Cllr Alec Cormack said there were seven classes of “exception rather than exemption” from the premium.
He said anyone in arrears should contact the revenues and benefits team, which was reaching payments plans for such circumstances.
The letter to the council added: “There is now a delay in the council offices in the processing of these applications for exceptions- as people try to avoid going into debt. People are being forced into that situation. Applications from April 17 for example, have not been processed and people have received pink/red bills and reminders causing great stress and concern.
“Many have contacted the benefits and welfare office, as was suggested by Councillor Cormack, and are either cut off after lengthy waits or are told that there is nothing that can be done. Some are saying that this is a conveniently manufactured way of continuing to milk the cash cow.
“Pursuing the goal of maximising income from this group of people who have contributed for seven years towards developing the housing stock, with nothing to show for it can best be described as thoughtless and at worst a deliberate attempt to ‘Stuff those who cannot vote,’ as one councillor described the arrangement.
“People are being placed in debt by the actions of the PCC. This must stop.”
Pembrokeshire County Council has been contacted for a response.
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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