CORNWALL Council has backed a move to close a loophole which has been used by second and holiday home owners to avoid paying council tax or business rates.

Thousands of properties in Cornwall are believed to be avoiding paying rates by being registered as businesses and then benefitting from small business exemption from business rates.

The Government recently announced that it was launching a consultation on closing the loophole and this week Cornwall Council voted to back charging those homes council tax.

A motion proposed by Labour councillor Cornelius Olivier called on the council to make the issue a priority and raise it with Cornwall’s MPs and the Government as part of the devolution agenda.

The Penzance councillor also got support for a call to be able to impose an additional council tax charge on second and holiday homes which could be used to fund affordable housing.

However a call for a change in planning powers which would allow neighbourhood development plans so that properties which are currently primary residences could not be converted into second or holiday homes was not supported when put to the vote.

Some local councils, including Mevagissey, St Ives and Fowey, have already agreed policies in their neighbourhood plans which prevent any new properties being used as second homes.

Cllr Olivier said the issue of second and holiday homes was of “considerable public concern” and so should be placed at the top of the council’s agenda.

The Labour councillor said recent figures showed that 17% of the second homes in the UK which are claiming business rate exemption are in Cornwall, showing the scale of the issue.

But St Minver and St Endellion councillor Carol Mould did not support the motion.

The Conservative councillor said: “I come from an area which has a large number of second home owners and they are the lifeblood of the community.”

She added: “We have tourism all year round and second homes play a large part of it and I support them.”

Richard Robinson, Conservative councillor for St Ives East, said second and holiday home owners were “abusing the system” by using services they are not entitled to and claiming business rates relief.

Labour councillor Stephen Barnes backed the motion saying: “I am more interested in giving local people somewhere to live than someone who might come down here once or twice a year on holiday.”