MS raises fears over tourism sector in north Powys

Holiday let businesses in Montgomeryshire could be pushed out of the market under new Welsh Government tax rules, according to local MS Russell George.

The Montgomeryshire MS raised the issue in the Senedd last week, warning that the requirement for self-catering properties to be rented out for at least 182 days a year is unrealistic for many local operators.

Those failing to meet the threshold risk losing business rate status and being moved onto council tax, including the premium rates applied by local authorities to second homes.

Mr George said the change was hitting small, family-run operators around Newtown and across the county. He argued that many of these businesses run converted barns or cottages with planning restrictions that stop them from being used as permanent housing.

“Many of these properties cannot be used as permanent homes due to planning restrictions, and they are being treated unfairly,” he said. “What I am calling for is a fair and balanced system, one that supports legitimate tourism businesses that play such a vital role in our local economy.”

In response, Finance Secretary Mark Drakeford said the current system was designed to address housing shortages but stressed that the government was open to feedback.

“My advice… is to take part in the consultation, because the consultation does not preclude anybody from raising any issue that they think is relevant to the operation of the 182-day requirement,” he told the Senedd.

He added: “The points that the Member makes should be communicated by those people who think that those are valid points and would allow us to implement the policy in a better way.”

The Welsh Government says 60 per cent of holiday lets in Wales already meet the threshold. However, Mr George highlighted figures from the Professional Association of Self-Caterers UK showing that around a third of properties are legally restricted from being used as permanent homes.

The consultation on the rules remains open, with self-catering businesses in Montgomeryshire encouraged to submit their views via: www.gov.wales/proposed-refinements-classification-self-catering-properties-local-tax-purposes.