Scotland moves on second home council tax discount
The Scottish Executive has announced that it will be giving local authorities the power to reduce the 50 per cent council tax discount on second homes.
The discount has been the source of much tension in picturesque areas of the country, notably the Highlands. Local inhabitants have complained that second homeowners push up the price and limit house availability for local people.
A running bone of contention is the fact that these owners do not pay the full council tax rates.
Since 2003 when local authorities in England were given the power to reduce the second home discount, areas like the Lake District have substantially reduced the discount on offer.
The 50 per cent discount was originally introduced by the Conservatives who argued that second home owners did not use the full range of council services so should not be obliged to pay for them.
Scotland’s Finance Minister, Andy Kerr, announced today that from the start of the 2005 financial year Scotland’s local authorities will be able to decide whether they wish to reduce the discount available to those with second, or unoccupied homes.
The Executive though is insisting that a minimum 10 per cent discount is still offered so an incentive is retained for owners to tell their local authority that the property is a second home or empty.
Any additional income will be ploughed into building new, affordable housing. Ministers hope that the building of new houses will also help reduce the pressure on property supply in local areas.
Speaking in Fife Mr Kerr said: “Second home owners contribute strongly to local communities in many areas. But second homes and properties which have been left vacant over a number of years can cause problems for local areas, including limiting the supply of affordable housing for local people.
He pledged that: “All additional income raised will be retained locally and used to provide new-built affordable social housing in areas determined by councils.”
The Executive estimates that as of September 2003 there were around 66,000 empty or second homes in Scotland. If all councils chose to reduce the discount to 40 per cent, that would result in a potential £25 million extra in revenue.
