A council in a holiday lettings hotspot had cut – repeat, cut – the council tax premium on second homes to 150%, just six months after a 200% rate was introduced. 

Councillors in Pembrokeshire, Wales, have also agreed to write to the Welsh Government asking it to reduce the 182 days let threshold by which self-catering properties qualify for non-domestic rates.

These decisions go against the trend of councils throughout England and Wales, which have lobbied governments to allow them to levy ever-steeper tax premiums.

The  amendment by independent councillor Huw Murphy to reduce the premium to 150% was supported by 30 votes to 26.

The new 150% premium will apply from next April.

The BBC reports that Councillor Rhys Jordan blamed the “huge surge” in properties for sale on the 200% premium.  He said they were generally one or two bedroom apartments not suitable for locals and claimed the council had been “too hasty” in bringing in the premium. 

He also claimed that tourism and hospitality businesses were reporting a reduction of 40-60% this season. 

His views were echoed by councillor Bethan Price, who said her area, St Davids, had been “a lot quieter” and did not benefit from the money raised by the premium.

The BBC also says: “Many businesses in the Pembrokeshire town of Tenby welcomed the decision.”