Tory led Cornwall Council say will soon be able to levy up to 100% more council tax on empty second homes, following plans due to be announced in this week’s Queen’s Speech.

New council tax rules for second and empty homes will be introduced as part of the UK Government’s commitment to invest in local communities and drive levelling up across the country.

Equipped with new discretionary powers, Local Authorities in England will be able to levy a premium of up to 100% on council tax bills for second homes – which are furnished but not occupied as a sole or main residence – empowering them to determine how best to raise additional revenue for their communities. As well as supporting and improving services, this extra funding could be used to help ensure council tax is kept low for local residents.

Homes left empty could also see their standard council tax rate doubled sooner – after 12 months rather than two years – in a move that will discourage owners from leaving properties vacant for a long time, while injecting money back into local areas.

In addition to having the power to apply greater premiums at a level of their choice, local authorities will enjoy flexibility on how to spend the funds raised and can decide to prioritise keeping council tax bills low for local households. This will also help deliver the infrastructure that communities really need, including genuinely affordable housing, social care and children’s services.

Welcoming the news Cllr Linda Taylor, Leader of Cornwall Council, said: “Second homes that stay empty for most of the year are increasingly becoming a real threat to the viability of so many communities across Cornwall, particularly given the housing crisis which has been exacerbated by international events, including the COVID-19 pandemic.”

“At Cornwall Council we have been calling for the Government to allow us additional powers to do something about this, and this levy does just that. It will provide us with extra revenue to go back into funding council services to benefit the residents of Cornwall.”

“We welcome this news and thank our six Conservative Cornish MPs for making the case alongside us, and the Government for listening and acting accordingly.”

Truro and Falmouth’s Member of Parliament Cherilyn Mackrory said: “This is something I have long-campaigned for, both during my time as MP for Truro and Falmouth but also when I was a Cornwall councillor.

"Having been an elected representative at both levels of government I fully understand how beneficial it would be for local authorities like Cornwall Council to be able to have these powers, which will generate income that can then be put direct into running and improving local services. This is an argument I have been making, along with my Cornish MP colleagues, for some time.”

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She says in addition to having the power to apply greater premiums at a level of their choice, local authorities will enjoy flexibility on how to spend the funds raised and can decide to prioritise keeping council tax bills low for local households.

"This will also help deliver the infrastructure that communities really need, including genuinely affordable housing, social care and children’s services," she said.

“Along with the announcement of the closure of the holiday let business rates loophole earlier this year, I am pleased to see this Government once again listening to concerns raised from Cornwall and committing to take action. The growing numbers of empty homes, many of them second homes, across Cornwall, are a legitimate concern when it comes to keeping our communities vibrant all year round and I hope you will agree with me that this is good news for us all.”

However, responding to the news, Cllr Jayne Kirkham, leader of the Labour group on the council and a Falmouth councillor said:  "The Government has said it is going to take a small step forward in the Queen’s Speech and give councils the power to double council tax on second homes and tax empty homes after one year not two.

"However, the double tax won’t apply to airbnbs & holiday lets that are rented for ten weeks/year. They will still be able to register for business rates, fall under the current threshold and pay no business rates or council tax at all. That loophole is still not closed. 

"Also, wouldn’t it be better if that extra money was used by the council specifically for providing more genuinely affordable housing, so actually contributing to solving the crisis that second homes are creating, rather than having to subsidise local services that have been struggling due to a decade's worth of Conservative austerity cuts?

"We need a rehaul of how housing is provided.

"This change is such a tiny, timid step in the direction of what’s needed, compared to what the Labour administration is doing in Wales, for example. 

"The First Homes Not Second Homes campaign that I am working on with Luke Pollard MP is part of a more comprehensive set of solutions for our housing crisis including regulating and licensing holiday lets & airbnbs, planning restrictions upon second homes and building council houses and making sure we have genuinely affordable homes where rents are linked to local incomes."