EditorPembrokeshire councillors vote to cut second homes tax premium again
Councillors in Pembrokeshire have agreed to lower the controversial levy on second homes for the second year running, cutting the premium from 150% to 125% following a knife‑edge vote at a cabinet meeting this week.
Narrow vote after heated debate
The decision follows last year’s reduction from 200% to 150%, with councillors now opting for a further cut. An amendment from Cllr Mark Carter, backed by Cllr Di Clements, sought to remove the premium entirely and return the rate to 100%.
But Cllr Alistair Cameron, cabinet member for corporate finance efficiencies, warned that such a move would create a £2.8m budget pressure in 2026‑27, equivalent to a 3% rise in general council tax.
Council leader Cllr Jon Harvey added: “The reality is if this amendment is approved we’ve got to find another £2.8m – either cuts or we put the council tax up by that amount. I would rather be looking after the majority of council tax‑payers in Pembrokeshire rather than supporting this 100%.”
Cllr Mike Stoddart argued the opposite, saying: “Very simply I don’t agree we can chisel money out of these people (second home owners) so we don’t have to go to our people; we’re acting to our own electoral advantage. It’s totally unfair to pay double the council tax and using the services a lot less.”
When the 100% amendment was defeated by 29 votes to 21, Cllr Phil Kidney proposed a compromise of 125%. That motion passed by just one vote — 26 in favour, 25 against — leaving the council facing a £1.4m shortfall.
📊 At a glance: second homes revenue
£12.5m raised across Wales
Councils collected an extra £12.5m last year from second homes and empty property premiums.
Pembrokeshire among top earners
The county generated one of the highest totals, reflecting its concentration of holiday lets and second homes.
£1.4m shortfall ahead
Cutting the premium from 150% to 125% is expected to reduce Pembrokeshire’s income by around £1.4m.
Policy purpose
Premiums were introduced to raise revenue and ease housing pressures in tourist hotspots.
Impact on second home owners
Under current Welsh Government rules, second home owners must pay the premium unless they can prove their property is let for at least 182 days a year.
The Welsh Government is consulting on changes that could allow owners to average lettings over several years, or to count up to 14 days of free charity use towards the 182‑day threshold. The consultation runs until 20 November, with any new legislation due to take effect from 1 April.
High concentration of second homes
A council report shows 13.8% of homes in Pembrokeshire currently have no usual resident, down from a peak of 14.6%.
Four communities — Dale, Lamphey, Newport and The Havens — have rates above 40%, while a further 14 communities exceed 25%.
Related stories from Swansea Bay News
Council rakes in extra £12.5m from second homes and empties
New figures show how much extra council tax premiums have generated across Wales.
Pembrokeshire backs 200% council tax premium for second homes
Councillors previously voted to double the levy on second home owners in tourist hotspots.
Swansea holiday let occupancy up 47% amid policy concerns
Experts warn Welsh Government rules are squeezing supply and driving competition for rentals.
Critics say 182‑day rule causing ‘soul‑crushing’ distress
Campaigners highlight the impact of strict letting thresholds on small holiday businesses.
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