News

The Co-operation Agreement between the Welsh Government and Plaid Cymru includes a commitment to tackle the issue of second homes affecting many communities in Wales.

The package of measures being announced today includes:

• Changes to planning regulations by the end of the summer. These will introduce three new planning use classes – a primary home, a second home and short-term holiday accommodation. Local planning authorities, where they have evidence, will be able to make amendments to the planning system to require planning permission for change of use from one class to another. We will also introduce changes to national planning policy to give local authorities the ability to control the number of second homes and holiday lets in any community.

• Plans to introduce a statutory licensing scheme for all visitor accommodation, including short-term holiday lets, making it a requirement to obtain a license. This will help raise standards across the tourism industry.#

• Following a consultation about varying land transaction tax locally in areas with large numbers of second homes, work will start today (Monday 4 July) with local authorities to develop a national framework so they can request increased land transaction tax rates for second homes and holiday lets to be applied in their local area.

The Welsh Government has already introduced a range of measures to address the issue of second homes, including giving councils the discretionary power to increase council tax premiums on second and empty homes and it has changed the rules on holiday lets so owners and operators make a fair contribution to their local communities.

For more information:

https://gov.wales/new-package-measures-address-high-numbers-second-homes

Councils will be able to control numbers of second homes and holiday lets under new Welsh government plans.

A new licensing scheme for people who want to operate short-term holiday lets, such as Airbnb, is also planned.

First Minister Mark Drakeford and Plaid Cymru leader Adam Price made the announcement as made as part of their co-operation agreement.

Local authorities have already been given the power to increase council tax on second homes by 300% from next year.

For more information:

https://www.bbc.co.uk/news/uk-wales-62034658

On 2 March 2022, I announced the next steps being taken by the Welsh Government, following our consultation on local taxes for second homes and self‑catering accommodation. The steps form part of our plans to ensure property owners make a fair contribution to the communities where they have homes or run businesses. This work, in turn, is part of the Welsh Government’s three-pronged approach to addressing the impact that large numbers of second homes and holiday lets can have on communities and the Welsh language.

The views conveyed in the consultation, including those from respondents representing the wider tourism industry, clearly support a change to the criteria for self-catering accommodation to be classified as non-domestic. Respondents were of the view that the majority of genuine holiday accommodation businesses would be able to satisfy increased letting thresholds, and a wide range of possible alternatives was suggested. Increasing the thresholds will provide a clearer demonstration that the properties concerned are being let regularly and are making a substantial contribution to the local economy.

Following our consultation, the Welsh Government is of the view that properties let out as self-catering accommodation on an infrequent basis should be liable for council tax. Increased letting criteria will ensure that self-catering properties are classed as non-domestic, only if they are being used for business purposes for the majority of the year.

I, therefore, announced an increase to the number of days, within any 12-month period, that a self-catering property is required to be made available to let, from 140 to 252 days, and actually let, from 70 to 182 days. A technical consultation on the draft Non-Domestic Rating (Amendment of Definition of Domestic Property) (Wales) Order 2022 (“the Order”) ran from 1 March to 12 April 2022. The consultation sought views on the clarity and practical application of the draft legislation. I have published a summary of responses.

Responses to the technical consultation did not raise any issues of technical clarity that are considered to require amendment of the draft legislation. I am today confirming that the Welsh Government will proceed with the legislation as drafted and consulted upon. The Order will come into force on 14 June 2022 and have practical effect from 1 April 2023, applying the amended criteria from that day onwards. Property owners intending to meet the amended criteria should aim to do so during the 2022-23 operating year, but compliance with the criteria will not be assessed until after 1 April 2023.

I recognise the strength of feeling among self-catering operators and have listened to the representations from individual businesses and industry representative bodies. There is limited evidence available in relation to some of these considerations and I am grateful to the sector for providing additional information they have gathered from their members. This has been taken into account in completing the Explanatory Memorandum and Regulatory Impact Assessment, which makes use of the available evidence. I recognise that the stronger criteria may be challenging for some operators to meet. The purpose of the change is to help ensure property owners are making a fair contribution to local communities, for example by increasing their contribution to the local economy through greater letting activity or by paying council tax on their properties. The Welsh Government’s policy priority is to support sustainable communities and affordable housing, as set out in our three-pronged approach.

The Welsh Government recognises that some self-catering properties are restricted by planning conditions preventing permanent occupation as someone’s main residence. The Council Tax (Exceptions to Higher Amounts) (Wales) Regulations 2015 provide for an exception from a council tax premium for properties restricted by a planning condition preventing occupation for a continuous period of at least 28 days in any one‑year period. In light of the changes we are introducing to the letting criteria, I am also exploring whether further amendments to these regulations are necessary in advance of the changes taking practical effect.

I will also be issuing revised guidance to local authorities on additional options that are available in the event that self-catering properties restricted by planning conditions do not meet the letting criteria.

As part of the Co-operation Agreement with Plaid Cymru, we are committed to taking immediate action to address the impact of second homes and unaffordable housing in communities across Wales, using the planning, property and taxation systems. As we continue to progress the package of measures and drawing on the latest evidence base, we will keep under constant review the whole range of levers available to use and how they may be deployed most effectively to meet our policy objectives and avoid any unintended consequences.

https://gov.wales/written-statement-classification-self-catering-accommodation-local-tax-purposes

First Minister Mark Drakeford today said Wales can look forward to a brighter future, as the last remaining coronavirus protections in law come to an end.

After more than 2 years of living with coronavirus regulations, these will expire on Monday May 30 2022, when the requirement to wear a face covering in health and care settings ends.

But the Welsh Government will continue to recommend people take simple steps to protect their health – including wearing face coverings in health and care settings – as Wales moves beyond the emergency response to the pandemic.

https://businesswales.gov.wales/news-and-blogs/news/coronavirus-regulations-end-wales

Welsh Government will provide eligible retail, leisure and hospitality businesses in Wales with a 50% non-domestic rates relief reduction for the duration of 2022-23, capped at £110,000 per business across Wales.

This is in addition to the existing Small Business Rates Relief schemes.

To apply for retail, leisure and hospitality relief, please follow this link:  https://www.flintshire.gov.uk/en/Business/Business-Rates/Business-Rates.aspx

http://www.denbighshire.gov.uk/en/business/business-rates/relief-and-reductions.aspx

North Wales Steam Initiative

For all Tourism & Hospitality providers in Wrexham, Flintshire, Denbighshire and Anglesey.

The STEAM initiative (Scarborough Tourism Economic Assessment Model) is the most popular and internationally recognised tool for Local Authorities and Tourism Associations across Wales and the rest of the UK to measure the economic impact of local tourism.

Regardless of if you have ever completed a return or not, we’re now really encouraging your participation as we look to measure the impact of the pandemic on our sector – whilst monitoring data that will enable us to measure the recovery.  In turn, the data is also really important, as it is one of the key datasets used to inform each Local Authorities annual government settlement as well. 

Therefore, the more hospitality providers who complete their STEAM return, the more robust the data and clearer picture of tourism’s worth to the North Wales economy we’ll have.

How do I complete my return?

This is really simple and will probably take around 5-10mins per month, or 30-mins one a year (depending on what you prefer).  Historically, we offered a postal service to return your data, however going forward – this will all be online.

Please note, there are no questions relating to financial matters, nor are there any questions relating to anything more personal than your business name.

2021 Data – Now Due!

For data relating to 2021, could we ask if you could click on the link below and complete your return by Friday 29^th April 2022.

https://www.surveymonkey.co.uk/r/NorthWalesSTEAM2021

2022 Data

Going forward, to complete your data for the 2022 calendar year (either on a monthly basis or by 28^th February 2023 at the latest) could you visit the following link;

https://www.surveymonkey.co.uk/r/NorthWalesSTEAM2022

Contact

Wrexham County Borough Council is commissioned on behalf of Anglesey, Flintshire, and Denbighshire to collate this data before Global Tourism Solutions (an external company) analyse the data and produce annual reports at Local Authority level.  Conwy commission us to coordinate the analysis of the data and Gwynedd coordinate the data collection and analysis themselves.

The project manager and first point of contact for any questions is;

Vicky Mathie

Tourism Officer

Wrexham County Borough Council

STEAM@wrexham.gov.uk

Please be advised of the Enterprise Renewal Fund which might be of interest.  Further details about the fund are available through the link below.

“LEADER theme 2 is all about local organisations, groups and businesses looking at new ways of making things, doing things and working together.  In particular, Cadwyn Clwyd will work with the business community to enable the provision of tailored pre-commercial support to help local entrepreneurs test the viability of new business concepts and ideas in a supportive and managed risk environment.”

http://cadwynclwyd.co.uk/funding-areas/business-innovation/

The criteria for self-catering accommodation being liable for business rates instead of council tax will change from April 2023.

Currently, properties that are available to let for at least 140 days, and that are actually let for at least 70 days, will pay rates rather than council tax. The change will increase these thresholds to being available to let for at least 252 days and actually let for at least 182 days in any 12-month period.

The change is intended to provide a clearer demonstration that the properties concerned are being let regularly as part of genuine holiday accommodation businesses making a substantial contribution to the local economy.

https://gov.wales/new-tax-rules-second-homes

Welsh Government local tourism levy - summary of proposals...docx

Please find the above bilingual briefing on the local tourism levy.  This has been prepared by Welsh Government following discussions at the levy design workshop group attended by Welsh Government, WLGA, WRA and local authority colleagues.   Attendees requested a brief document they could share more widely in response to queries from external stakeholders/councillors etc. 

Many thanks to Denbighshire County Council for distributing this to us.

CRTG

Next step in development of tourism tax

The Welsh Government has confirmed a consultation on proposals for a local visitor levy will launch in autumn 2022.

Rebecca Evans, Minister for Finance and Local Government, said a levy would enable destinations in Wales to be enjoyed for generations to come.

Tourism provides a substantial economic contribution to Wales with tourism-related expenditure reaching more than £5bn annually in 2019. A tourism tax would raise revenue for local authorities enabling them to manage services and infrastructure which makes tourism a success.

The Welsh Government’s Programme for Government, and the Cooperation Agreement between the Welsh Government and Plaid Cymru, both contain commitments to introduce levies.

Formal consultation on draft legislative proposals for a visitor levy will launch in the autumn, providing a platform for a range of views to be considered.

Rebecca Evans, Minister for Finance and Local Government, said:

“Visitor levies are a common feature in tourist destinations internationally. They are an opportunity for visitors to make an investment in local infrastructure and services, which in turn make tourism a success. Without such a levy, local communities face an undue burden to fund local services and provisions on which tourists rely. From keeping the beaches and pavements clean, through to maintaining local parks, toilets and footpaths – the critical infrastructure that supports tourism should be supported by all those that rely on it.

“The introduction and subsequent use of such a levy would enable destinations in Wales to be enjoyed for generations to come and encourage a more sustainable approach to tourism. 

“The levy would be proportionate by design, and powers to raise the levy would be discretionary for local authorities. This would enable decisions to be taken locally, according to the needs of our communities. The levy will apply to those paying to stay overnight within a local authority area. Opportunities for wider contributions on the cost impact of other types of visitor activities on local infrastructure will be offered as part of the consultation on the levy.”

Designated Member Cefin Campbell MS said:

“Giving local people the power to introduce a tourism levy will make a difference to communities across the country, many of which attract a significant number of tourists. It will give local people and their representatives more power and resources to invest and deliver in their areas.

“Councils will be able to ask tourists to contribute in a small way to the areas they are visiting and the local services they use.

“This measure will help support a sustainable rather than an extractive tourism sector, which will help bring the greatest benefit to communities and the local economy.

“Such levies – often known as tourism taxes – are commonplace in countries across Europe and beyond. This is about mutual respect between our communities and the visitors they welcome. It is a new policy which is the fruit of a Welsh co-operative spirit.”

 

Further details are also available on: Written Statement: Development of a Local Tourism Levy (10 February 2022) | GOV.WALES.