Labour’s second home premium is a “wealth tax”

Welsh Conservatives have accused Labour of establishing a “spiteful wealth tax” on second homes, and urged the Welsh Government to instead revise its ‘Houses into Homes’ strategy which – they say – lacks ambition.

The Housing (Wales) Act 2014 allows local authorities to charge a premium of up to 100% on the standard rate of council tax for long-term empty properties (12 months or more), and second homes, from April 2017.

However, the flexibility in the scheme has led to inconsistency and ambiguity across Wales and there are concerns that the proposals will penalise 2^nd home owners who already pay twice for services.

Writing for the Welsh Conservative website today, Shadow Local Government Secretary, Janet Finch-Saunders, said:

“Whilst I have nothing but support for initiatives to help the homeless into sustainable, secure accommodation, Labour’s new wealth tax won’t do anything of the sort.

“The ‘empty home premium’ is a spiteful wealth tax and despite Labour’s lofty claims, it will add nothing to the affordable housing supply.

“Let’s be clear, this is a money spinner – a direct tax on people with second homes, many of whom already pay twice for services they rarely use.”

Mrs Finch-Saunders added:

“Many second home owners already own their main home in Wales, and increasing council tax premiums to such an extent unfairly penalises those who are already investing in Wales.

“Let’s call it what it is: a punitive wealth tax. A tax on the life savings of those hardworking families who already pay council tax on more than one home, and who are now being penalised for investing their life-savings into property.”