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The number of second homes being put up for sale in one part of Wales has increased by more than 250% – as homeowners and businesses criticise the Welsh government’s council tax premium.

Many councils in Wales now charge an inflated tax rate for second homes, up to 300%, with the aim of freeing up rarely used housing stock for locals and generating income.

In Pembrokeshire, the council tax premium increased to 200% in April, trebling the cost for homeowners and leading to many selling up.

Many suspect properties are being listed in a loophole to temporary avoid the upped tax
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Many suspect properties are being listed in a loophole to temporarily avoid the upped tax

The picturesque Tenby, a tourist haven, has among the highest second-home-ownership in Wales

Figures show that this July 135 second homes were listed for sale in the county, a rise of 255% compared to the 38 on the market at the same time last year.

Despite the influx of listings, actual sales are at a record low.

Estate agent Hamptons says second home sales accounted for just 4.5% of sales in Pembrokeshire in the first six months of 2024 – compared to 21% a decade ago.

Local agents say the properties coming onto the market are too expensive for first-time buyers – and that many homes are being listed in a loophole to avoid the increased tax.

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Rhys Jordan, from Nested Estate Agent Pembrokeshire, told Sky News the new policy wasn’t working.

“Quite frankly, here in Pembrokeshire, wages are low. Anything in reach for first-time buyers needs to be below £250,000,” he said.

“All they’ve done is create a glut of unsuitable properties for long-term use on to the market,” he added.

Second homes for sale are exempt from council tax for up to one year and he said properties are “definitely” being listed to avoid the new council tax premium.

Rhys Jordan (left), from Nested Estate Agent Pembrokeshire, told Sky News' Dan Whitehead that the new policy wasn't working
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Rhys Jordan (left), from Nested Estate Agent Pembrokeshire, told Sky News’ Dan Whitehead that the new policy wasn’t working

“There’s no denying that many properties are priced not to sell purely to sit on the market to avoid paying council tax,” he continued.

There are also concerns that falling numbers of second homeowners will hit the local economy.

Matthew Ronowitz runs three restaurants in Tenby, employing 75 people.

He told Sky News: “I think the influx of second homeowners has helped us get more of a 12-month year for business trade, which from my point of view is a positive thing.

“It does kind of worry me that if these second homeowners feel like they’re being pushed out by the local authority with the way that they’ve structured things.

“It could impact the business and for the jobs we are able to provide for local people.”

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Matthew Ronowitz runs three restaurants in Tenby and said he thinks that second-home owners help bring business in beyond the summer
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Matthew Ronowitz runs three restaurants in Tenby and said he thinks that second-home owners help bring business in beyond the summer

Further down Tenby’s high street, John Mather runs the Nook gift shop.

He said: “They’re [second homeowners] an all-year customer. Tenby has a lot of visitors that just come during the holiday times, whereas the second homeowners are here all year.

“They kit out their homes, they’ve got a disposable income, and they support the businesses in town.”

Ifor William Hywel has owned his second home in Tenby harbour for the last 30 years.

His council tax for the property has risen from around £2,000 to £7,000 a year.

“I understand the theory behind it, but frankly I don’t think it works. It’s just another tax,” he said.

Ifor William Hywel has owned his second home in Tenby harbour for the last 30 years and thinks the new policy won't work
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Ifor William Hywel has owned his second home in Tenby harbour for the last 30 years and thinks the new policy won’t work

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He doesn’t think the policy will help first-time buyers:

“Just look at property values. There’s no way that first-time buyers can actually afford properties like this one. It’s going to drive people away.”

The council hopes the premium will bring in more than £10m a year.

Cabinet member for corporate finance and efficiencies Cllr Joshua Beynon said: “We’re not trying to ruin the tourist industry locally, we’re trying to find the balance.”

Cllr Joshua Beynon told Sky News: "We're not trying to ruin the tourist industry locally, we're trying to find the balance."
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Cllr Joshua Beynon told Sky News: ‘We’re not trying to ruin the tourist industry locally, we’re trying to find the balance’

He added: “My view is someone living in that house all year round, buying from local shops, contributing to the local economy, whether that’s through work or whether through spending, is far more effective than having someone in a second home who doesn’t spend as much time here in Pembrokeshire.”

A Welsh government spokesperson said: “We will continue to monitor the effects of this legislation to ensure it is achieving its intended goals.”

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Starmer says UK will ‘set out a path’ to raise defence spending to 2.5%

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Starmer says UK will 'set out a path' to raise defence spending to 2.5%

The UK will “set out a path” to lift defence spending to 2.5% of national income in the spring, the prime minister has said, finally offering a timeframe for an announcement on the long-awaited hike after mounting criticism.

Sir Keir Starmer gave the date during a phone call with Mark Rutte, the secretary general of NATO, in the wake of threats by Moscow to target UK and US military facilities following a decision by London and Washington to let Ukraine fire their missiles inside Russia.

There was no clarity though on when the 2.5% level will be achieved. The UK says it currently spends around 2.3% of GDP on defence.

Volodymyr Zelenskyy, Nato Secretary General Mark Rutte and  Keir Starmer, during a trilateral meeting in 10 Downing Street.
Pic: PA
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Ukraine leader Volodymyr Zelenskyy, Sir Keir Starmer and NATO boss Mark Rutte in October. Pic: PA

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A spokeswoman for Downing Street said that the two men “began by discussing the situation in Ukraine and reiterated the importance of putting the country in the strongest possible position going into the winter”.

They also talked about the deployment of thousands of North Korean soldiers to fight alongside Russia.

“The prime minister underscored the need for all NATO countries to step up in support of our collective defence and updated on the government’s progress on the strategic defence review,” the spokeswoman said.

“His government would set out the path to 2.5% in the spring.”

The defence review will also be published in the spring.

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While a date for an announcement on 2.5% will be welcomed by the Ministry of Defence, analysts have long warned that such an increase is still well below the amount that is needed to rebuild the armed forces after decades of decline to meet growing global threats from Russia, an increasingly assertive China, North Korea and Iran.

They say the UK needs to be aiming to hit at least 3% – probably higher.

With Donald Trump returning to the White House, there will be significantly more pressure on the UK and other European NATO allies to accelerate increases in defence spending.

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Gatwick Airport: Police release two people who were detained amid security incident as South Terminal reopens

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Gatwick Airport: Police release two people who were detained amid security incident as South Terminal reopens

Two people detained during a security incident at Gatwick Airport have been allowed to continue their journeys after a suspect package saw a “large part” of the South Terminal evacuated.

The terminal was closed for hours after the discovery of a “suspected prohibited item” in a passenger’s luggage sparked an emergency response. It reopened at around 3.45pm.

Officers from the EOD (Explosive Ordnance Disposal) team “made the package safe” before handing the airport back to its operator, Sussex Police said.

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Passengers at Gatwick Airport after flights were cancelled. Pic: PA
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Passengers at Gatwick Airport after flights were cancelled. Pic: PA

Their statement continued: “Two people who were detained while enquiries were ongoing have subsequently been allowed to continue their journeys.

“There will remain an increased police presence in the area to assist with passengers accessing the South Terminal for onward travel.”

The force also thanked the public and airport staff for their patience while the incident was ongoing.

Earlier the airport, which is the UK’s second busiest, said the terminal was evacuated after a “security incident”.

“The earlier security alert has now been resolved and cleared by police,” it later said in a statement on Friday afternoon.

“The South Terminal is reopening to staff and will be open to passengers shortly.”

Gatwick said some flights were cancelled while others were delayed.

It said passengers should contact their airlines for any updates on flights.

Footage on social media taken outside the airport showed crowds of travellers heading away from the terminal building.

“Arrived at London Gatwick for routine connection. Got through customs to find out they’re evacuating the entire airport,” one passenger said.

“Even people through security are being taken outside. Trains shut down,” another passenger added, who said “thousands” of people were forced to leave.

Another passenger said people near the gates were being told to stay there and not go back to the departure lounge.

People outside the airport were handed blankets and water, passengers told Sky News.

The airport said its North Terminal was still operating normally.

Gatwick Express said its trains did not call at Gatwick Airport during the police response, but the airport said trains would start calling there again once the terminal was fully reopened.

More than 600 flights were due to take off or land at Gatwick on Friday, amounting to more than 121,000 passenger seats, according to aviation analytics firm Cirium.

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As Starmer’s approval rating plummets, Farage is on the rise: Can Labour turn things around?

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As Starmer's approval rating plummets, Farage is on the rise: Can Labour turn things around?

“We are in unchartered territory.”

Sir John Curtice understands polling like few others, but you do not have to be an expert to see the Labour government has had a rough start.

It’s been less than five months since Sir Keir Starmer’s landslide election victory and already two-thirds of Britons say they feel worse off.

That’s according to a new poll from Ipsos, the latest survey to assess public opinion of the new occupants of Downing Street.

And while the prime minister’s favourability rating plummets, Nigel Farage’s is on the rise.

Ipsos favorability towards politicians
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Ipsos favorability towards politicians

“We have never previously had a government starting with quite as low a share of the vote Labour got in July,” Sir John tells Sky News, referring to the party’s 174-seat majority despite a modest vote share of just 33.7%

“It’s also difficult to find a government that has slipped as much in the polls as this government has so quickly.”

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Labour are being made to pay for unpopular decisions such as the means testing of the winter fuel payment and PR nightmares like the freebies row.

While “the Conservative party is not that popular”, we are in a new world of multi-party politics where “people have plenty of options, Reform UK is gaining traction”, Sir John adds.

It’s an “unprecedented situation”, and against it Labour face two fundamental difficulties – a leader who “hasn’t got a particularly strong political antenna” and a party “that doesn’t do narrative”.

“Voters are looking for them to fix the country,” Sir John says.

“Inevitably, they can’t in a matter of three to four months but they don’t have a positive narrative to explain why they have done what they have done.

“Their only argument is the Tories hid things and it’s worse than we thought. That’s a debatable proposition.”

But how detrimental is bad polling early on, and is it possible to shift the dial once a perception sets in?

‘They have certainly got time’

According to Keiran Pedley, director of UK Politics at Ipsos, “there’s not a hard and fast rule”.

Two in five people feel worse off since Labour got elected.
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Two in five people feel worse off since Labour got elected.

He says: “If you look at past prime ministers, there are some that start at a certain level, and they fall gradually over time, and they lose an election or get replaced, like Rishi Sunak or Theresa May.

“But there are other examples where it’s not as linear – Margaret Thatcher, Tony Blair, David Cameron, their popularity ebbed and flowed.”

To some degree, this was all circumstantial. Thatcher was bolstered by the Falklands War, for example, while the perceived weaknesses of then Labour leader Ed Miliband helped Cameron bounce back from his austerity-hit approval ratings to win the 2015 election.

“These things are all relative to how competently the opposition are seen as well,” Mr Pedley says.

“Given Labour are not six months into what might be a five-year term they have certainly got time.”

‘Public is giving Labour a chance’

Indeed, some Labour insiders are not fazed by the polls, hoping the public will stick with them over time as they start to feel the benefits of the government’s longer-term pledges like growing the economy and investing in the NHS.

According to Luke Tryl, director of thinktank More in Common, there is evidence the public is giving them some grace on this front.

The polling might be grim, but in focus groups, he says people seem willing to “give them the benefit of the doubt”.

He said: “They will say ‘I am not that happy with what they have done so far, but I am willing to give them a chance’.”

That does not mean being complacent, however.

Mr Tryl says the next election is likely to come down to three metrics: Do people think the weekly shop is more affordable, can people get a GP appointment more easily, have the small boats stopped or at least reduced?

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Mr Tryl says Labour will want to start making some progress on those issues long before voters next go to the polls – perhaps even within a year – or else the mood against the party could “crystalise”.

“They could find themselves in a situation like Joe Biden, who actually had lots of popular policy but [by the election campaign], the mood had crystallised against him, it was too late.”

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‘Learn lessons from America’

James Matthewson, a Labour spokesman during the Jeremy Corbyn era, also urged Starmer to learn lessons from across the Atlantic.

He believes the prime minister “absolutely can turn things around”, but that requires “defining what a centre-left government should look like”.

“They cannot look like the same old establishment. They need to look sensible and moderate but at the same time show they are different.”

That’s not an easy task he admits, and one Starmer’s predecessor, Mr Corbyn, failed to pull off with his huge fiscal spending programme that was rejected at the 2019 election.

Democratic presidential nominee U.S. Vice President Kamala Harris reacts as she delivers remarks, conceding 2024 U.S. presidential election to President-elect Donald Trump, at Howard University in Washington, U.S., November 6, 2024. REUTERS/Kevin Lamarque
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Labour need to learn from the Democrats’ losses, say pollsters

With even less room for manoeuvre on public spending than then, Mr Matthewson says Labour need to define their values with policies that are bold and socially progressive – but don’t cost the earth.

“The private school tax policy is a clear example of this kind of thing,” he says. “Most people don’t send their kids to private schools, and most people like that. It’s a thing of values.”

Drug reform and democratic reform are other areas Labour could tap into to distinguish themselves from the Tories, he adds – warning Mr Farage will be “emboldened” by Donald Trump’s victory, and that poses a huge risk at the next UK election.

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100 days of Starmer

Their “core narrative”, he says, is “there is a left-wing establishment ruling the world”.

“It’s nonsense, but it’s the narrative that works. And the more you look like that, the more you’re trying to be responsible and fill the shoes of the previous government, the more you fall into that trap.”

Can Labour bounce back?

Of course, while Mr Biden had four years, Mr Starmer has five – so for now at least, time is indeed on his side.

As Sir John reminds us, there’s only really one event a leader cannot recover from – which Liz Truss knows all too well.

“If you preside over a market crisis, it’s game over – you are dead,” he says.

“Other than that, it’s delivery, delivery, delivery.”

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