Holiday and Second Homes Regulation: Cornwall and Isles of Scilly

Marie Goldman Excerpts

Wednesday 23rd October 2024 Westminster Hall

[Andrew George]

The hon. Member is absolutely right. On the one hand, we are trying to address the desperate housing needs of local families. We have in excess of 20,000 families on the local housing register, and we know that is merely the tip of the iceberg—the need is a great deal more. On the other, a lot of local families are being evicted from their private rented accommodation to make way for yet more holiday lets. If we do not recognise that, we are failing to grasp the full picture, so he makes a strong point.

I acknowledge that this is an important part of the Cornish economy, but it is worth noting that when one looks for accommodation in places such as Cornwall and the Isles of Scilly, the hotel and guesthouse sector is just as—if not more—important, in the sense that it competes with the holiday letting sector without many of the incentives and benefits that the self-catering sector enjoys. For example, many operate above the VAT threshold, whereas those in the holiday letting sector, if they take it down to a single property, do not. Of course, they face many other regulations as well.

[Marie Goldman (Chelmsford) (LD)]

Does my hon. Friend agree that second and holiday homes have a big impact on the hospitality sector, because businesses find it difficult to find accommodation for their staff, especially in places like Cornwall and the Isles of Scilly where there is limited accommodation, which then makes it difficult for them to run their businesses?

[Andrew George]

That is absolutely the case. As a visitor to the Isles of Scilly, my hon. Friend knows that that is a significant problem, because people cannot commute to the Isles of Scilly to work. It is difficult to commute to work for businesses providing those kinds of jobs in many of the coastal areas around Cornwall, and many people find themselves living in very informal settings, including caravans, because nothing else is available to them.

I will rapidly run through some of the regulations concerned: council tax; small business rate relief; the furnished holiday lettings scheme; holiday business registration, which the last Government proposed, and the planning use class changes. First, on council tax, going back to the pre-history where this all originated, when the Conservatives originally introduced the council tax system—what they called the community charge—they introduced a 50% council tax discount for second homes, because they said second home owners were not using all the services and therefore should not have to pay for them. That was the justification back in the 1990s.