Welsh Liberal Democrats urge Welsh Government to close loophole after fears second home owners taking millions from coronavirus business fund

Welsh Liberal Democrat Diversity Officer Leena Farhat has written to the Minister for Finance Rebecca Evans as well as the Minister for Housing and Local Government Julie James, urging them to close a tax loophole which is allowing second home owners to claim millions of pounds from the fund meant for struggling small businesses.

The loophole allows second homes owners to get away with paying no council tax whatsoever by pretending to be a holiday let.

As a result, second homes are now able to take advantage of the £10,000 grant that the Government is giving to small businesses.

Leena Sarah Farhat said:

“Excessive second home ownership has created mass inequality in communities across rural Wales, making them inaccessible to many demographics such as our young people and thus breaking the fabric of the diverse communities that underpin our nation.”

“This loophole is common knowledge for our councils and our affected communities.

“Now we’re faced with this double whammy of second home owners not only being allowed to avoid paying council tax, but also claiming money which should be going to our small businesses who are struggling to survive.

“It’s a massive kick in the teeth to all those businesses that are falling through the cracks with no support from the Welsh Government, that millions of pounds are being dished out to people who are wealthy enough to own another home.

“I am calling on the Welsh Government to work on a fair and progressive solution that relieves this pressure on our Local Government and our businesses. We need to crack down on this urgent issue so as to weather the economic storms to come.”

A recall petition has opened to decide if a Tory MP convicted for a false expenses claim will keep his seat.

Chris Davies tried to split the cost of photographs between two office budgets by faking invoices , when he could have claimed the amount by other means. Brecon and Radnorshire voters wanting to sign the petition will be able to do so until Thursday 20 June in six locations in the constituency. A by-election will be held if 10% of the electorate - 5,303 voters - sign. Mr Davies would be able to contest a by-election, if one takes place. House of Commons Speaker John Bercow confirmed the recall petition last month , after Mr Davies was given a community order of 50 hours unpaid work and a £1,500 fine, at Southwark Crown Court. In a statement, Mr Davies has apologised to his constituents for "making such an error", saying he very much hopes to continue serving Brecon and Radnorshire. Constituents can sign the petition at venues in Llandrindod Wells, Brecon, Presteigne, Ysytradgynlais, Hay-on-Wye and Crickhowell. Apart from Spring Bank ...

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