THE WELSH GOVERNMENT has rejected a request from Pembrokeshire County Council to reconsider its 182-night rule on holiday letting.

In a letter to the local authority from Wales’s Finance Secretary, Mark Drakeford, the Welsh Government said it would not reconsider its approach until it had two years’ data on its effects.

The Labour government introduced the 182-night rule to target property owners who casually rent properties and pay neither the increased Council Tax premium on second homes nor Small Business Rates. By encouraging owners to release properties onto the for-sale market, the government wants to increase the availability of homes in Wales’s holiday hotspots. It’s a blunt tool, and there have been predictable but unforeseen consequences (at least by the Welsh Government). The rule’s introduction has reduced the number of properties upon which owners pay either the enhanced rate of Council Tax for second homes or pay business rates.

A LETTER TO MARK

On October 17, Pembrokeshire’s county councillors instructed the Council leader to write to the Welsh Government asking for a reduction in the 182-night rule.

Although councillors agreed an increase in the previous threshold was welcome, many felt the letting target was too high for many viable businesses.

The letter to the Welsh Government said: “Whilst 182 days is certainly achievable in some of our main tourist towns such as Tenby, Saundersfoot, and Newport, it was very difficult to achieve this in other parts of the county, particularly away from the sea.”

The letter said the rule is having a detrimental effect on Pembrokeshire’s vital tourism industry.

Council Leader Jon Harvey’s letter also said: “We do not wish to implement any local policy decisions that would conflict with Welsh Government, and, as such, I am formally writing to you to ask the Welsh Government to consider reducing the 182 days let threshold for self-catering properties to qualify for Non-Domestic Rates.”

DRAKEFORD SAYS “NO”

In a reply from Mark Drakeford, which was circulated to all Council members, the Welsh Government refused to reconsider its position ahead of the next tourism season.

Mr Drakeford said: “The primary aims of our changes to local taxes are to ensure property owners are making a fair contribution and to maximise the use of property to the benefit of local communities. This could include benefits arising from increased occupancy for short-term letting or the release of some properties for sale or rent as permanent homes for local people.

“As a consequence of the changes, self-catering properties are classed as non-domestic only if they are being used for business purposes for the majority of the year. This provides a clearer demonstration that the properties concerned are being let regularly and are making a substantial contribution to the local economy.”

Mr Drakeford claimed that information from businesses engaged in holiday letting showed the Welsh Government’s approach was having the effects Cardiff Bay desired. That seems contrary to data provided by the Wales Tourism Alliance and the figures produced for Pembrokeshire County Council’s budget.

Confirming the Welsh Government has no plans to reconsider its position, Mark Drakeford said: “We understand that there may be a period of adjustment, as some property owners consider their options and determine how to respond. It will be important to allow time for the changes to embed before drawing any firm conclusions.

“The initial impact on the number of self-catering properties classified as non-domestic will be known after April 2025, when two years will have elapsed since the changes took effect. This is when the Valuation Office Agency is expected to have completed a full round of routine compliance checks.”

Claiming that reconsidering the position would cause “uncertainty” in the private letting sector, Mr Drakeford wrote: “There are no plans to undertake a formal review in the short-term, nor in isolation from the broader package of measures within our three-pronged approach to tackling the impact that large numbers of second homes and holiday lets can have on communities and the Welsh language.”

That’s not only a “no”, it’s a “no” with knobs on.

YOU ALREADY HAVE ALL THE TOOLS YOU NEED

Mark Drakeford doubled down on his “no” by claiming Pembrokeshire County Council already had all the tools it needed to address the problems caused by the tourism tax.

He said: “We have extended the exceptions to council tax premiums to include properties with a planning condition which specifies that the property may only be used as a holiday let or prevents its permanent occupation as a person’s sole or main residence. We have also provided

guidance for local authorities on the use of discretion to tailor their arrangements to reflect local circumstances.”

Quite how designating a property for a holiday let allows its release onto the local housing market where homes for local families are in short supply is unaddressed.

The Finance Secretary continues: “Where a self-catering property does not meet the letting criteria and is not subject to a planning condition, the Welsh Government has provided local authorities with as much discretion as possible to consider the approach to take for the benefit of your communities.

“We consider our local taxation regime will help local authorities to incentivise the right balance between capacity within the self-catering tourism sector, and [its[ economic benefits and supporting viable communities of local residents to live and work in these areas.”

If, as Mark Drakeford claims, Pembrokeshire County Council has all the powers and options it needs to address the issue, there will, no doubt, be a flood of information coming from the Council’s Cabinet Member for Finance, Joshua Beynon, to show members precisely where the rabbit that should be in the hat is hidden.

THE COUNCIL says it has initiated emergency preparedness plans as the county braces for severe weather conditions this weekend. Additional staff are on standby to tackle potential issues across the highways network and in local communities.

Key measures announced include:

• Facility closures: All council-operated facilities, including leisure centres, libraries, parkland, and Waste and Recycling Centres, will remain closed on Saturday, December 7.
• Public transport suspension: Bus services will be halted, and Transport for Wales has been informed of the disruption.
• Cleddau Bridge restrictions: High-sided vehicles are advised to avoid the Cleddau Bridge, which may face a full closure overnight and throughout Saturday due to high winds.
• Emergency shelter: An emergency night shelter has been opened and will remain operational until Monday, December 9, to support those in need.
• Community support: Care providers and care homes have implemented contingency plans to safeguard Pembrokeshire’s most vulnerable residents.

The council urges residents to remain vigilant and stay updated via Pembrokeshire County Council’s social media channels over the weekend.

For more information and updates, monitor local news outlets.

PEMBROKESHIRE COLLEGE has announced a series of closures and event cancellations for Saturday (Dec 7) due to a RED weather warning issued for the region.

The closures include:

• Alice in Winter Wonderland Show: The performance has been cancelled. Refunds will be processed automatically for those who purchased tickets via Ticket Source.
• Campus 6 Gym: The gym will remain closed for the day.
• Animal Care Saturday Club: This session has been postponed and will now take place on Sunday (Dec 8) at 10:30am.

The College has apologised for any inconvenience caused and urges everyone to prioritise their safety during the severe weather conditions.