Council Tax: Second Homes Debate
Full Debate: Read Full DebateBaroness Thornhill
Main Page: Baroness Thornhill (Liberal Democrat - Life peer)Department Debates - View all Baroness Thornhill's debates with the Ministry of Housing, Communities and Local Government
(2 years, 9 months ago)
Lords ChamberTo ask Her Majesty’s Government what plans they have to introduce legislation prohibiting second homes advertised as holiday rentals from avoiding council tax by registering for business rates and thereby qualifying for small business rate relief.
I recognise the noble Baroness’s interest in this issue. The Government have confirmed that we will legislate to require that holiday rentals meet an actual letting threshold before being assessed for business rates. This will ensure that only genuine holiday businesses can access the rate relief for small businesses. We will set out further details shortly in the Government’s consultation response.
Minister, this at last is a Cornish/Cumbrian Lib Dem campaign success—I can see the leaflets now. Can he explain why it has taken so long and say when we will get a timetable and conclusions of the 2018 consultation that was never actually published? Does he agree that salt has been rubbed into the wound, given that unscrupulous second-home owners have also received £104 million from Cornwall’s Covid aid pot, thus reducing the amount available to legitimate businesses?
My Lords, I should have registered my residential and commercial property interests, although I have not tried to use this loophole. The Government announced in March that we will legislate, and we have been working very closely with the Treasury and the Valuation Office Agency to finalise the details of how and when this will be implemented. This of course takes time and we will publish our consultation response shortly.