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Council votes to cut Council Tax for second home owners

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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.

Community

Ben Lake MP visits postal workers during Christmas rush

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BEN LAKE MP visited postal workers at the Llandysul Delivery Office last Friday (Dec 13) to show his support and gain insight into their operations during the festive season—the busiest time of the year for Royal Mail.

The holiday period sees Royal Mail handle around double its usual volume of letters and parcels, as people send Christmas cards and shop for gifts online. To meet this seasonal surge, the Llandysul Delivery Office has hired four extra vehicles, while Royal Mail nationally has recruited 16,000 temporary workers and introduced nearly 4,000 additional vans, trucks, and trailers.

During the visit, Ben Lake spoke with Ryan Goellnitz, Customer Operations Manager, about Royal Mail’s efforts to enhance convenience for customers. These include services like Parcel Collect—where posties collect parcels directly from customers’ doorsteps—and the introduction of over 5,000 new parcel drop-off points this year, including at Collect+ stores and parcel lockers.

Ryan Goellnitz said:
“It was great to have Ben visit our Delivery Office and show him how we are gearing up for our peak period. We are pulling out all the stops to deliver Christmas for our customers.”

Ben Lake, MP for Ceredigion Preseli, praised the dedication of the postal workers:
“It was a pleasure to visit the Llandysul Delivery Office and witness the incredible volume of post managed by Royal Mail, not only here but across the country. This is an essential service year-round, but the effort and planning to ensure smooth operations during Christmas are extraordinary.

“I am immensely grateful for their tireless efforts and dedication, which deserve to be fully recognised. The visit gave me real appreciation for the hard work and commitment of everyone involved.”

Royal Mail’s preparations for Christmas are a year-long effort, ensuring the postal service continues to meet the festive demand.

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News

Pembrokeshire County Council achieve Insport Partnerships Gold Standard

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PEMBROKESHIRE COUNTY COUNCIL have recently achieved the insport Partnerships Gold Standard, recognising their commitment and passion to providing inclusive opportunities for disabled people across the local authority area.

‘insport’ is a Disability Sport Wales programme delivered with the support the of Sport Wales, which aims to support the physical activity, sport, and leisure sectors delivering inclusively of disabled people. The purpose of the insport programmes is to support the development of inclusive thinking, planning, development and delivery by everyone within an organisation so that ultimately, they will deliver across the spectrum to disabled and non-disabled people, at whatever level they wish to participate or compete. The intent is to facilitate and deliver cultural change in attitude, approach, and provision of physical activity (including sport) and wider opportunities for disabled people.

Sport Pembrokeshire and Pembrokeshire Leisure have consistently developed their offers for disabled people locally, becoming the first local authority partner nationally to achieve the insport Partnerships Gold standard. Working with the natural, rural and coastal assets, the Sport Pembrokeshire & Pembrokeshire Leisure teams’ have done a fantastic job in navigating the opportunities and challenges to prioritise the inclusion of disabled people in leisure & community-based physical activity (including sport) opportunities. Ensuring that as many people as possible can be involved in sport and physical activity.

Achievement of the insport Partnerships Gold standard means that an inclusive approach to communities of disabled people is embedded within strategies, programmes, and thinking. This award is never the end of an organisation’s inclusion journey, and Disability Sport Wales will continue to support Pembrokeshire County Council as they continue to provide sector leading inclusive opportunities for disabled people.

Pembrokeshire have a number of excellent examples of collaborative work and partnerships supporting the delivery of strong inclusive programming across Pembrokeshire’s communities which add significant value to the area’s rich inclusive sporting heritage. These opportunities provide the initial steps on the pathway that many former and current Paralympic and Commonwealth Games Para athletes have taken from Pembrokeshire, including the Paris 2024 Paralympic Champion, Matt Bush; Paris 2024 Paralympic athlete, Jodie Grinham; 2022 Commonwealth Games medallist Lily Rice.

Tom Rogers (Governance & Partnership Director, Disability Sport Wales) said: “Pembrokeshire’s achievement of the insport Partnerships Gold standard is a remarkable milestone that highlights the unwavering commitment to inclusion in physical activity (including sport). This achievement recognises the efforts in creating opportunities that ensure everyone, regardless of ability, can participate and thrive in physical activity and sport at a level of their choosing.

Achieving the insport Partnerships Gold standard reflects the culture of inclusivity and recognises the excellent example for communities across Wales and beyond of an embedded culture of inclusion. Sport Pembrokeshire’s dedication to breaking down barriers and fostering an equitable and person centred approach to the delivery of physical activity is reflected across their programming. The commitment to inclusion exits across the Sport Pembrokeshire and Pembrokeshire Leisure teams’ and the achievement of this standard recognises the years of hard work by current and former team members, as well as excellent community led opportunities across the local authority area.

Congratulations on this significant achievement—your success paves the way for a brighter, more inclusive future in sport.”

Matt Freeman, Sport Pembrokeshire Manager said, “Pembrokeshire County Council is proud to achieve the prestigious insport Gold Standard, a recognition of our commitment to championing inclusive sport and physical activity across the county. This milestone, led by Sport Pembrokeshire – the Council’s sports development team – reflects the collaborative efforts of our partners to ensure opportunities for inclusive participation continue to grow. We remain dedicated to working with both new and existing partners to expand access and make inclusive provision a cornerstone of sport and physical activity in Pembrokeshire”.

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Education

Call for clarity on rural schools policy from Welsh Government

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CYMDEITHAS YR LAITH have called on the Welsh Government’s Cabinet Secretary for Education, Lynne Neagle, to use the current review of the School Organization Code to state clearly the presumption against closing rural schools, and that local authorities must start from the point of view of trying to maintain and strengthen them, only considering closing them if all other options fail.

In a message to the secretary today, the movement referred to the words of Ceredigion Council’s Chief Executive, Eifion Evans, during the authority’s Cabinet meeting at the beginning of the month (Tuesday, 3 December), when it was agreed to treat statutory consultations on the proposal to close Ysgol Llangwyryfon, Ysgol Craig-yr-Wylfa, Ysgol Llanfihangel-y-Creuddyn, and Ysgol Syr John Rhys in Ponterwyd as informal ones.

Mr Evans told the meeting: “The Code is extremely complex and extremely difficult. And as I’ve said all along, the Code is very vague at the moment. It’s a headache for officials as much as it is for anyone else as to how to interpret it and use it. I hope that the review that is currently taking place down in Cardiff regarding this Code is going to finally try to get some sort of clarity on what needs to be done.”

In response, Ffred Ffransis said on behalf of the Cymdeithas yr Iaith Education Group: “The 2018 edition of the Code states clearly enough that the introduction of a presumption duty against closing rural schools that are on the Government’s official list. But many local authorities such as Ceredigion believe that they can start from the point of view of an intention to close a number of rural schools to save money, and then, just go through the empty steps of naming and ruling out alternative options with the same generic sentence.”

In September 2018, when introducing the Code, Kirsty Williams AM explained its intention on the floor of the Assembly: “Local authorities in those areas, if they have a school that’s on the list, should start on the basis that closure is the last option and they should seek every opportunity through a variety of ways to keep those schools open… Presumption against a closure and the option to seek alternatives to keeping a school open, again, should not be left to the official consultation period, but should be employed by the council before they make any decision to go out to consultation on the future of the school.”

Mr Ffransis added: “It is clear that following a process similar to what we saw with Ceredigion Council did not follow the intention of the Senedd and the Welsh Government when introducing this change in the Code.

“Quite simply, the principle of presumption against closing rural schools needs to be emphasised and made clear in the third edition of the Code that will be published as a result of the consultation. This way, it should be impossible for anyone to mistake that the Senedd or the Welsh Government is serious about the policy.”

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