STV NewsDisappointed Tory leader Cameron Inglis has voiced strong concerns North Ayrshire Council have agreed to implement a policy to charge a Council Tax premium on second homes.
Following a motion by the SNP administration, a 100% premium will be added to the Council Tax bills of properties classed as second homes from April 1.
Council tax legislation states that a property is considered a second home if it is not someone’s sole or main residence but has been furnished and lived in for 25 days or more during the previous 12 months.
The decision to move ahead with the policy was made at a meeting of North Ayrshire Council on Wednesday and brings North Ayrshire into line with almost all other Scottish local authorities.
Elected members heard that the council undertook extensive engagement with communities on the proposals late last year despite a majority being against them.
The feedback received was mixed, with 38% of respondents favouring the premium levy being applied and 59% against it.
In the survey, those in favour of the additional levy said that second-home owners raised house prices—particularly on the island communities of Arran and Cumbrae—and contributed to a lack of affordable housing, while those against it said that second-home owners made significant contributions to local economies.
Cllr Christina Larsen, cabinet member for Finance and Procurement, said: “When legislation was approved to apply a Council Tax Levy on Second Homes, it was with the aim of helping to increase the availability of housing by encouraging more homes to be used for living in, rather than lying empty for long periods.We hope to see real long-term benefits to the availability of housing for people in communities across North Ayrshire.”
Based on the current Council Tax charges across bands, it is estimated that the application of a 100% premium to second homes would result in additional income of approximately £1.2m a year.
Under the new policy, 10% of additional income received from the Council Tax Levy will be ring-fenced to support investment in affordable housing.
Elected members also approved the extension of the current provision for a 50% Council Tax discount for up to 12 months on recently purchased properties undergoing repairs or renovations to include second homes.
Cllr Tony Gurney, cabinet member for Green Environment and the Economy, added: “In his speech, Councillor Inglis said it was not for the council to make rules.
“I am wondering does this approach extend to all other council income streams and if so how does he suggest we pay for roads, education, social care and so on.”
The North Ayrshire Scottish Conservative Group put an amendment up against the increase to the second homes council tax that was proposed by the administration but their proposals failed.
They claim that the increase in council tax will see tourism and businesses fail as people sell their houses and leave the islands.
The tax, they say, will also force people to choose between selling their house or moving it onto a short-term let, something which the council should not be doing. It is not the council’s jurisdiction to tell people what to do with private property, the Tory leader argued.
Group leader, Cllr Inglis said: “The second homes council tax increase will offer nothing new for the people who will pay it. It is an unfair increase that will not go towards front-line services but only to balance the books for the council. The proposals will have a serious impact on the islands of Arran and Cumbrae.
“The decision by council on Wednesday to introduce this increase will see people move off the islands, potentially killing local businesses and the economies.”
The motion was passed with 22 votes compared to seven for the amendment.
At the same meeting, elected members also agreed a revised policy for the provision of Empty Property Relief in relation to Non-Domestic Rates.
The revised policy seeks to standardise the levels of Empty Property Relief available to property owners, reducing the levels and timeframes of relief available and encouraging owners to bring empty premises back into use.
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