Second homes tax poses 'serious risk' to Millport's economy, islanders say

A second homes tax could pose a “serious risk” to the Cumbrae island economy, according to the local community.

North Ayrshire Council is reconsidering its plans to bring a double council tax on second homes following backlash from the Cumbrae Community Council.

“Our community is extremely concerned that the impacts of this policy disproportionately impact Cumbrae,” Graham Wallace, advisor to Cumbrae Community Council, said.

“This is a cynical cash grab by North Ayrshire Council that will lead to vacant properties on our island that nobody wants. It will directly reduce vital income into our local economy.”

Back in February, North Ayrshire Council voted to double the council tax for second homes from April 1, 2025, bringing it into line with almost all other Scottish local authorities.

However, those plans are now under review.

The council opened up a consultation to review the double council tax charges on second homes following the Cumbrae Community Council’s challenge at the end of April.

North Ayrshire Council previously argued that the aim was to increase the availability of housing by encouraging more homes to be used for living in, rather than lying empty for long periods.

“Like other Councils across Scotland who have already adopted this measure, we hope to see real long-term benefits to the availability of housing for people in communities across North Ayrshire, and for homes to be occupied for longer periods of time throughout the year,” a council spokesperson said.

They said there is a need for more affordable housing across North Ayrshire, which is why the council decided to ringfence 10% of the income generated from the double council tax policy to support investment in affordable housing.

However, the community of Millport – the town on Cumbrae – has argued that the second home council tax “disproportionately” impacts the island’s “fragile” economy and housing balance.

“The type of properties that will be forced onto the market are not the ones permanent residents want,” Mr Wallace said.

“They are small flats in old buildings which are expensive to heat in the winter. We’re calling for a proper plan, including a detailed study into Cumbrae’s second homes, and a programme to make them fit for permanent occupation —rather than driving people and investment away.”

The local community council has claimed that the new tax could strip £500,000 annually from the island’s economy, which generates approximately £12.9m per year.

“Given the island’s reliance on tourism and part-time residents, this poses a serious risk to local jobs, services, and community stability,” a spokesperson from the Cumbrae Community Council said.

Despite a population of just 1,262, Cumbrae accounts for 30% of all second homes in North Ayrshire, which has a population of 133,413.

According to the Cumbrae Community Council, that means the per capita impact on the island will be “74 times greater than on the mainland”.

The council spokesperson said the policy includes a commitment to continue to monitor how the scheme develops and consider any adjustments as necessary.

“Cumbrae Community Council has submitted an application to review the ICIA and, as part of the review process, we are now inviting interested parties to make written representations in respect of the review,” the spokesperson added.

The community council is calling for residents, visitors and businesses to contribute to the consultation by email or by writing to Head of Democratic Services at North Ayrshire Council.

Comments must be made no later than by 23.59 on Tuesday May 20. 2025 and must include the name and contact details of the person making the representation.