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.”

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