Owners of second homes in Pembrokeshire will be paying a reduced council tax premium next year, following a decision that was passed by a single vote. A council tax premium is added to the main council tax bill, including the precepts from the Dyfed-Powys Police and Crime Commissioner and the town and community council components of the overall bill.
Late last year, Pembrokeshire councillors voted to lower the council tax premium on second homes from 200% on top of the standard bill, effectively a triple rate, to 150%. Read the biggest stories in Wales first by signing up to our daily newsletter here.
Before this, owners of second homes in the county were charged a 100% premium.
After receiving support from the council's Cabinet, a full meeting of Pembrokeshire County Council on October 9 was recommended to maintain the second homes premium at 150% and keep the long-term empty properties rate at 300% for properties vacant for more than two years.
The percentage of homes in Pembrokeshire with no usual resident, comprising holiday lets, empty homes and second homes, stands at 13.8%, down from a peak of 14.6%, according to a report for members.
Four communities in the county - Dale, Lamphey, Newport, and The Havens - have a percentage exceeding 40%, and an additional 14 have a rate of 25% or higher, the report further noted.
At the meeting, Cllr Alistair Cameron, Cabinet Member for Corporate Finance Efficiencies, warned that a reduction in the second homes premium to 100%, as recommended by the Council Tax Working Group, would result in a budget pressure of £2.8m for 2026-27, equivalent to a 3% increase in general council tax levels.
Cllr Mark Carter proposed an amendment to lower the rate to 100%, which was seconded by Cllr Di Clements.
Council Leader Cllr Jon Harvey cautioned: "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%."
During the meeting, Cllr Phil Kidney warned that if the 100% amendment failed, he would propose a reduction to 125%.
One of those opposing the status quo was Cllr Mike Stoddart, who argued: "Very simply I don't agree we can chisel money out of these people 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."
Cllr Carter's call for a 100% rate was defeated by 21 votes for, 29 against, and two abstentions, leading to Cllr Kidney's amendment being put forward, which passed by just one vote; 26 for and 25 against.
Members later unanimously agreed that the empty property rate should remain at its current level.
A 25% drop is equivalent to a funding shortfall of approximately £1.4m.