The Welsh Government is facing criticism over its scheme to charge second-home owners a council tax premium of up to 300%, with some warning it could turn tourist hotspots into “ghost towns”.
In April 2023 the amount councils in Wales could charge second-home owners rose to 300%, in a bid to free up housing stock for locals.
In addition, the number of nights holiday let owners must fill their properties to avoid the second home tax and be eligible for business rates rose from 70 to 182.
But holiday accommodation providers say the new threshold is pushing many out of business.
Image: Gwion Llwyd, represents around 200 holiday let owners in Wales
“We’ve got examples who are already realising that this is going to be a really hard target for them to achieve,” says Gwion Llwyd, who represents around 200 holiday let owners in Wales.
He says some are already selling up.
“They’re just going to give up and going to come out of the market unfortunately,” he added.
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“They’re going to take the kitchen out, rip the bathroom out so it doesn’t class as accommodation anymore, and give up on the business. So that barn will sit empty now and contribute nothing to the local economy.”
In part, holiday properties being sold because of the increased premium demonstrates the government’s plan is working.
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But in the seaside resort of Abersoch, Gwynedd, the policy is causing anger.
The area charges a 150% second home council tax premium, the highest rate in Wales.
For decades a playground for wealthy outsiders, more than 54% of properties in the village are either second homes or holiday lets, with most locals priced out.
The village is home to the most expensive street in Wales – where clifftop houses average more than £1.7m. On the beach below, a small boat shed is currently on the market for offers in excess of £250,000.
Nigel Jones runs a local shop and told Sky News the government’s council tax premium won’t do anything to increase affordable housing and only hit the local economy.
“They’re actually probably killing the market to be honest,” he said.
“It won’t do anyone any favours, it’ll just become a ghost town because the houses are so expensive here. I don’t think any local will ever be able to afford it. What Gwynedd [council] should do is build more houses for locals rather than tax the second homes so much.”
At the heart of the policy are local people unable to find somewhere affordable to live.
Image: Angharad Owen, from Anglesey, talks to Sky’s Dan Whitehead
Image: Eryri National Park
Angharad Owen, from Anglesey, was forced to stay in a friend’s converted shed, before finally finding a property to rent in the small village of Brynrefail, near Snowdon.
She told Sky News that since the COVID-19 pandemic, the area has changed.
“There were a lot of people coming here wanting to buy a piece of paradise,” she said.
“I have seen a number of houses up for sale and snapped up very quickly – and I’ve been looking myself because I’d like to buy a place but the prices have been going up scarily.”
She says it is mainly Airbnbs popping up.
“I’ve had neighbours who I’ve got to know and then they’ve left and the properties have changed into Airbnbs,” she added.
“I’ve seen a lot of change in a very short amount of time. It changes the whole dynamic, you lose that sense of community.”
Reacting to concerns from holiday let owners, Rebecca Evans, the Welsh Government’s minister for finance and local government, told Sky News: “We think that for a business to benefit from small business rates relief it really should be operating as a business for half of the year.
“We do know some property owners may find that particularly difficult, so we have provided local authorities with the discretion to either not apply the premium or reduce council tax to nothing in cases where they think that’s the right thing to do.”
Ms Evans admitted the second home premium is not the complete solution to solving the housing crisis.
“It’s definitely the case that some of these properties are not going to be affordable for first time buyers or local families necessarily – that’s why it’s really important we have a much wider approach,” she said.
“Premiums on council tax aren’t going to solve all of our housing issues here in Wales, but what we are doing is investing tens of millions of pounds in purchasing empty homes for example, putting those up to standard and a whole range of other interventions as well.”
Elsewhere, Scotland is continuing to consult on plans to charge double council tax, while in England some councils, such as Cornwall, are planning a similar measure.
Veterans are set to join the King for a VE Day tea party today as the prime minister has paid tribute to the “selfless dedication” of the war generation.
Among them will be a 99-year-old who took part in the D-Day landings and a 100-year-old woman who worked in the Special Operations Executive, known as Churchill’s Secret Army.
Director general of the Royal British Legion, Mark Atkinson, said the charity was “proud” to be taking a place “at the heart of these national celebrations and commemorations” on the 80th anniversary of the end of the Second World War.
He said it would be “one of our last opportunities as a nation to pay tribute to those veterans still with us today”.
Evacuees from World War Two and veterans who were still in active conflict after VE Day are among the other guests set to attend the tea party, which will take place in the presence of the King and other members of the Royal Family.
Image: The Royal Family will watch a military procession and flypast on Monday. File pic: PA
At 12pm, the Royal Family will observe a military procession, followed by a flypast.
It will be the first major VE Day anniversary without any of the royals who stood on the balcony of Buckingham Palace on the day victory in Europe was declared, after the death of the late Queen Elizabeth II in 2022.
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‘Not just for Britain’
The celebrations come as Prime Minister Sir Keir Starmer praised veterans for their “selfless dedication” and thanked them for a “debt that can never fully be repaid” in an open letter ahead of VE Day.
He said the stories which will be heard this week from those who fought in the Second World War would be a reminder that the victory “was not just for Britain” but was also “a victory for good against the assembled forces of hatred, tyranny and evil”.
Sir Keir said the WW2 veterans “represent the best of who we are” and that without their service “the freedom, peace and joy that these celebrations embody, would not be possible”.
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VE Day veteran tells Sky News what the atmosphere was like when WWII was finally declared over in Europe
Personnel from NATO allies the US, France and Germany will be among those taking part in the procession in London.
The commemorations will begin with the words of Sir Winston Churchill‘s 1945 victory speech, spoken by actor Timothy Spall.
Thousands of people are expected to line the streets of the capital to witness the celebrations.
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On the anniversary itself on Thursday, marking exactly 80 years since the Allies formally accepted Germany’s surrender, a service of commemoration will be held at Westminster Abbey, to include a national two minutes’ silence.
Pubs across England and Wales, which usually close at 11pm, will also stay open for an extra two hours to allow punters more time to celebrate.
Eight men have been arrested by the Metropolitan Police in two unconnected but “significant” terrorism investigations.
In one operation on Saturday, counter-terror officers arrested five men – four of whom are Iranian nationals – as they swooped in on various locations around the country. All are in police custody.
The Met said the arrests related to a “suspected plot to target a specific premises”.
In an update shortly after midnight, the force said: “Officers have been in contact with the affected site to make them aware and provide relevant advice and support, but for operational reasons, we are not able to provide further information at this time.”
Commander Dominic Murphy, head of the Met’s Counter Terrorism Command, said: “Counter-terrorism policing, supported by police and colleagues from across the country, have conducted arrests in two really significant operations, both of which have been designed to keep the public safe from threats.
“There are several hundred officers and staff working on this investigation, and we will work very hard to ensure we understand the threats to the wider public.”
He refused to say if the plot was related to Israel, but described it as “certainly significant” and said “it is unusual for us to conduct this scale of activity”.
He also asked the public to “avoid speculation and some of the things that are being posted online”.
MI5 director general Ken McCallum said in October that the intelligence agency had responded to 20 “potentially lethal” Iran-backed plots since 2022. He warned of the risk of an “increase or broadening of Iranian state aggression in the UK”.
Rochdale resident Kyle Warren, who witnessed one of the arrests at a neighbouring house, said his children had been playing in the garden when they came running into the house, saying a man in a mask had told them to go inside.
“Obviously, I was a bit worried,” Mr Warren told Sky News’ Lisa Dowd, and so he went into the garden to investigate.
“As we’ve come out, we just heard a massive bang, seen loads of police everywhere with guns, shouting at us to get inside the house.”
Image: Kyle Warren said his children were ‘petrified’
From upstairs in his house, he then heard “loads of shouting in the house” and saw a man being pulled out of the back of the house, “dragged down the side entry and thrown into all the bushes and then handcuffed”.
There were about 20 to 30 officers with guns, he believes.
“It’s just shocking, really. You don’t expect it on your doorstep.”
His daughters were “petrified… I don’t think they’ve ever seen a gun, so to see 20 masked men with guns running round was quite scary for them”.
Mr Warren, who only moved into his house a year ago, said he had “never really seen anyone going in or out” of the house and actually thought it was empty.
Image: One suspect was arrested in Cheadle Hulme, Greater Manchester. Pic: Sarah Cash
Image: One suspect was arrested in Cheadle Hulme, Greater Manchester. Pic: Sarah Cash
Arrests and searches around the country
The Met added officers were carrying out searches at a number of addresses in the Greater Manchester, London and Swindon areas in connection with the investigation.
It said those detained were:
• A 29-year-old man arrested in the Swindon area • A 46-year-old man arrested in west London • A 29-year-old man arrested in the Stockport area • A 40-year-old man arrested in the Rochdale area • A man whose age was not confirmed arrested in the Manchester area.
Image: A 29-year-old man was arrested in the Stockport area
Terror arrests in separate investigation
Police also arrested three further Iranian nationals in London on Saturday as part of another, unrelated counter-terror investigation.
The suspects were detained under section 27 of the National Security Act 2023, which allows police to arrest those suspected of being “involved in foreign power threat activity”.
Home Secretary Yvette Cooper said: “These were two major operations that reflect some of the biggest counter state threat and counter terrorism operations that we have seen in recent years.
“This reflects the complexity of the kinds of challenges to our national security that we continue to face.”
Earlier, she thanked police and security services in a statement, and called the incidents “serious events that demonstrate the ongoing requirement to adapt our response to national security threats”.
Last year, the government placed the whole of the Iranian state – including its intelligence services – on the enhanced tier of the new foreign influence registration scheme.
It means anyone asked by Iran to carry out actions for the state must declare it, or face prison time.
And that comes in the context of increased warnings from government and the security services about Iranian activity on British soil.
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Counter terror officers raid property
Last year, the director general of MI5, Ken McCallum, said his organisation and police had responded to 20 Iran-backed plots presenting potentially lethal threats to British citizens and UK residents since January 2022.
He linked that increase to the ongoing situation in Iran’s own backyard.
“As events unfold in the Middle East, we will give our fullest attention to the risk of an increase in – or a broadening of – Iranian state aggression in the UK,” he said.
The implication is that even as Iran grapples with a rapidly changing situation in its own region, having seen its proxies, Hezbollahin Lebanon and Hamas in Gaza, decimated and itself coming under Israeli attack, it may seek avenues further abroad.
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The government reiterated this warning only a few weeks ago, with security minister Dan Jarvis addressing parliament.
“The threat from Iran sits in a wider context of the growing, diversifying and evolving threat that the UK faces from malign activity by a number of states,” Jarvis said.
“The threat from states has become increasingly interconnected in nature, blurring the lines between: domestic and international; online and offline; and states and their proxies.
“Turning specifically to Iran, the regime has become increasingly emboldened, asserting itself more aggressively to advance their objectives and undermine ours.”
As part of that address, Jarvis highlighted the National Security Act 2023, which “criminalises assisting a foreign intelligence service”, among other things.
So it was notable that this was the act used in one of this weekend’s investigations.
The suspects were detained under section 27 of the same act, which allows police to arrest those suspected of being “involved in foreign power threat activity”.