PEMBROKESHIRE COUNTY COUNCIL has voted to reduce the Second Home Council Tax premium from 200% to 150%, following a close decision on Thursday, October 17.

The change, set to take effect from next April, comes after a Conservative motion to cut the premium in half was decisively defeated. Currently, second homeowners pay three times the standard rate, with a Band E property’s tax rising to around £7,000 annually, compared to £2,300 for local residents.

The reduction was achieved through an Independent Plus Group (IPG) amendment, which passed by a narrow margin.

SERVICE CUTS OR TAX HIKES FOR LOCALS

Whatever the reasoning behind the Conservative amendment, the debate centred on potential future Council Tax rises and deeper service cuts.

Cllr Jordan Ryan was surely correct when he said that those who supported halving the Second Homes Premium were also those most unlikely to support increasing Council Tax to make up the money lost from the Council Budget in 2025/26.

Cllr Di Clements, Conservative Group Leader, proposed halving the Premium, arguing that the current level risked harming tourism in Pembrokeshire. She said it was important to be honest about how the Council used the money the Premium raised. The original intention of the Second Home Premium was to fund affordable housing. However, it was now being used to buttress the shortfall in the Council’s Budget.

She said she had to wonder about the local authority’s financial stability if it was so dependent on the Premium.

Cllr Clement claimed the Council’s message to second-home and holiday accommodation owners is clear: “We don’t want you.”

Cllr John Cole, who supported Cllr Clement, said the Cabinet member for Finance, Cllr Joshua Beynon, had dismissed second-home owners’ representations about the Premium’s impact.

Cllr Beynon responded briskly to Cllr Cole’s suggestion. He reminded the Merlin’s Bridge councillor that part of the purpose of setting a budget was to weigh evidence and reach a conclusion. On balance, the need to reduce the size of any future Council Tax rise on local residents and preserve essential services outweighed second-home owners’ interests.

He reminded Cllr Clements that the decision to use the money raised from the Premium for general funding was made by the Full Council, not the Cabinet. Cllr Beynon said the issue would be debated during next year’s budget setting.

DIVIDING THE PIE

Cllr Mark Carter raised the issue of how the Coucil Tax Premium operated. Not only the County Council precept trebled, but also the precepts for community councils and policing. He found it hard to justify that the policing precept raised in Pembrokeshire was funding policing elsewhere.

Cllr Beynon replied that he would examine the issue raised and report back. However, he added, he could not tell Dyfed Powys Police where to spend its money.

Former Cabinet Member for Finance Cllr Alec Cormack boiled the debate down to brass tacks and asked the Director of Resources to outline the effects of supporting the Conservative motion.

Jon Haswell replied that each 25% cut to the Premium would reduce the Council’s revenue by £1.3m.

In the context of the Conservative motion, that would lead to an additional £5.2m pressure on the Council’s Budget in addition to the existing £32.8m pressure.

That meant that, even if the Council used £3m of its reserves, in addition to deeper cuts to services, the Council would need to increase Council Tax for 2025/26 by 18.87%.

Cllr Cormack observed that councillors ignored Mr Haswell’s warnings last year, and as a result, they faced even tougher choices next year.

Without making deep cuts, the Budget won’t balance, he added.

Alec Cormack said: “If we cut the Premium today, we are voting for a bigger increase in Council Tax in February.”

RESIDENTS SHOULDN’T BANKROLL SECOND-HOME OWNERS

Cllr Alistair Cameron agreed with reducing the Second Homes Premium but said the Council could not afford to do so because of grave budgetary pressures.

“We are having this difficulty because we are trying to pay for care, provide homes, and care for vulnerable children. We cannot afford to make next year’s Budget any harder than it should be.

Alan Dennison said he did not want his voters in Milford Haven to subsidise second-home owners but wanted to find a middle ground.

Cllr Beynon said that if the Conservative amendment passed, schools’ budgets would suffer a 4% cut next year.

Aled Thomas supported Di Clements. He said that suggesting that the only way to balance the Budget was to increase Council Tax was fundamentally flawed.

Cllr Thomas claimed the administration had sown a seed of division between the Pembrokeshire people, the tourism industry, and second-home owners.

He claimed councillors were being gaslit on the Council’s budgetary pressures.

Cllr Tony Wilcox said that councillors should not pander to a minority interest. His mailbox about the need to cut the Second Home Premium was zero.

He added: “Our residents aren’t affected by this. We cannot penalise our voters to pander to those who can afford a second home.”

Tenby Cllr Sam Skyrme-Blackhall said, “I cannot justify raising Council Tax on our residents to reduce second-home owners’ bills.”

Cllr Paul Miller said the impact on tourism was unknown. However, he added: “If you own properties in Tenby and Saundersfoot and you can’t let them for 182 days a year, you’re doing something wrong.”

THE CASE FOR HOUSING

Michelle Bateman said, “75% of the Premium goes to affordable housing. We must increase all kinds of affordable housing; we will not solve housing problems with social housing alone.

She added that the Council would introduce options for shared ownership and equity in spring.

“Any reduction in the Premium meant fewer people would benefit from those schemes.”

She continued: “Housing must be a priority for this Council. I cannot believe that councillors are justified deferring to a well-heeled and articulate minority ahead of those who need this funding.”

Cllrs Delme Harries and Bethan Price highlighted the lack of benefits the Premium brings to rural wards.

Cllr Mike John intervened to highlight the difference between those who inherited old family homes and contributed to local communities and those who did not, ate up the supply of affordable houses, and rented them out on Airbnb.

Josh Beynon sympathised with Cllrs Harris and Price and said services – especially social care – cost more to deliver in rural areas. However, before the pot of money was divided, the Council needed to know what was in it.

He took Aled Thomas to task. Cllr Beynon said this was not scaremongering. He and officers have tried to explain the position in budget seminars, and he would be happy to come to councillors’ wards to discuss it if they wanted. He emphasised seeking a centre ground that addressed reality.

Mike Stoddart was having none of it. He would support the Conservative motion and believed the policy was economically illiterate.

Huw Murphy sought a more radical solution. The system was overcomplicated, he said. Every residential property in Pembrokeshire should pay Council Tax, Cllr Murphy said, and there are too many properties paying nothing.

SYMPATHY FOR SECOND HOME OWNERS SECOND TO LOCALS’ NEEDS

The Cabinet Member for Housing, Michelle Bateman, responded to the debate.

Addressing Cllr Bethan Price, she said £1.4m of funding was being used to develop affordable housing at Glasfryn in St Davids.

Cllr Bateman continued by saying that her sympathy for second-home owners was outweighed by her sympathy for Pembrokeshire’s homeless and those waiting on the housing register.

Cllr Alec Cormack endorsed Michelle Bateman’s view, saying: “We should think of those with no houses, not those with two houses.

The Conservative motion fell.

COUNCIL BACKS 150% PREMIUM

The Council moved to debate Cllr Huw Murphy’s amendment to reduce the Second Home Premium to 150%

Cllr Murphy kept his remarks brief and to the point. He said he supported the idea of a premium and was keen to explore other ways the Council could use the Premium system to raise money more effectively.

Council Leader John Harvey intervened in the debate.

Cllr Harvey said it was wrong for the Council to prioritise the interests of second-home owners over those of permanent residents.

He observed that Cllr Murphy seemed to have retreated from his position last year, when he supported the 200% Premium, even though nothing had changed since last December when he supported it.

Cllr Harvey added: “We don’t have the data to change horses now, though we might next year.

“What worries me more is the loss of income.”

Jon Harvey asked councillors: “What are you prepared to cut or lose, or are you prepared to increase Council Tax to make up the gap?

“I am not prepared to say I voted to reduce second homes Council Tax and put the burden on residents.”

The IPG amended passed by 30 votes to 26 and slashed the Second Home Premium.

The next task for those who voted to shave £2.6m off the Council’s Budget will be to identify cuts or choose Council Tax increases over and above those already forecast in the Medium-Term Financial Plan.

As Cllr Jordan Ryan cynically suggested, those who voted to cut the Premium have no intention of doing either.

THE NATIONAL Infrastructure Commission for Wales (NICW) has today this week (Oct 17) revealed its latest report — “Building Resilience to Flooding in Wales by 2050”.

The report presents bold but practical recommendations for Welsh Ministers to future-proof Wales against the growing risks of flooding over the next 25+ years.
With one in seven properties in Wales now at risk of flooding, the report couldn’t come at a more important time — especially with this figure set to increase by more than a third as the effects of climate change worsen and the UK Committee on Climate Change warning that Wales is not ready for the impacts.

Outlining 17 recommendations within a Future Flooding Framework for Wales, the report emphasises natural solutions for tackling this — placing nature and community integration at the forefront of increasing Wales’ resilience to flooding.

This approach is typical of NICW, the independent infrastructure advisory body for Wales — which works with local communities to ensure its recommendations reflect real-world needs and create practical, locally-driven outcomes.
Eluned Parrott, Lead Commissioner on the project, said: “As part of our work, we visited some of the communities who have been affected by flooding in recent years, such as the Conwy Valley and Pontypridd. The impacts felt have been devastating, but we also learned that these communities are not content to be passive victims and are ready to act.

“What’s more, during the eighteen months that we’ve been working on this project, it has become increasingly clear that we cannot “concrete” our way out of the risks we face. We must adopt more holistic solutions, such as restoring the natural environment’s ability to store water higher in river catchments, and empowering local communities to take action.”
To achieve this, the report lists the recommendations within four key categories: Governance, Structure and Policy; Collaboration, Partnerships, and Community; Funding and Capacity; and Awareness, Skills and Data.

In summary, to drive regional collaboration the report recommends a catchment-based approach and engaging local communities directly in flood-related decisions — with initiatives like Citizen Juries and a new Water Resilience Forum.

On the governance side, the report calls for the appointment of a Water Commissioner and the creation of a 30-year resilience strategy to drive Wales-wide, innovative flood solutions.
To boost awareness and skills, the report suggests integrating climate adaptation into Wales’ school curriculums and providing flood resilience training at a regional level.

Lastly, to enhance funding and capacity, it recommends diversifying funding sources and introducing Welsh Government subsidies to help homeowners invest in flood resilience measures. All 17 recommendations can be accessed in full here.

Dr Eurgain Powell, Lead Commissioner, said: “Although flooding can have a devastating effect on people’s lives, awareness of flood risk; how to access information; and what actions local governance and real people need to take to respond to flooding, remains very low.

“To resolve this, our work has shown that we need a different approach — one that works with people and nature to drive real change. Ultimately, we believe that success will be driven by good communication and a shared responsibility and sense of urgency between government, business and communities.

“We hope the findings of this report will empower communities to voice and act on their own futures, with the support of Welsh Government — to ensure a resilient, dynamic, and abundant future for generations to come.”

NEW research from Shawbrook has revealed that nearly four out of five developers in Wales believe that setting government targets for councils could help resolve planning issues. This insight comes as the UK government is ramping up efforts to address the ongoing housebuilding crisis by implementing new targets.

The study highlights a significant disparity in the time it takes for developers to obtain planning permission. While the average waiting time for Welsh developers stands between 7 and 12 months, nearly 60% of developers in Wales reported these extended delays. In contrast, only 39% of developers across the UK experience similar waits, with many receiving approvals within four to six months.

The delay in planning permission is one of several challenges Welsh developers face. Almost one in ten developers across the UK have had planning permission denied, exacerbating delays and escalating costs. Terry Woodley, Managing Director of Development Finance at Shawbrook, commented on the broader impact of these delays on the construction sector.

“The sector has had a tough time of late, with delays in planning permission leading to sluggish construction output and stretched timelines,” said Woodley. “However, the Chancellor’s recent speech provides some optimism, with plans for clearer housebuilding targets, a review of green belt boundaries, and an increase in planning officers.”

Developers are also contending with rising property prices, making it difficult to source affordable land. While 59% of developers in Wales cited property costs as a key hurdle, over two-thirds (67%) of developers across the UK echoed similar concerns.

The government’s proposed overhaul of the planning system, which includes transferring decision-making for major infrastructure projects from local to national authorities, is expected to address some of these challenges. Developers hope this will streamline the process and avoid the bureaucratic red tape that often hampers progress.

In light of the ongoing difficulties, Woodley encourages developers to consider specialist advice: “Those looking to move projects forward should consider speaking to a broker, especially one in a specialist space, as they can help navigate more complex cases.”

The research was conducted by Censuswide and surveyed 567 property developers across England, Wales, and Scotland between 16 April and 3 May 2024.