“Money for Social Homes, not Holiday Homes” – George urges Ministers to stop Budget giveaway 

Local MP, Andrew George has again cautioned the Government over it’s widening of tax loopholes for holiday homeowners in last week’s budget. In a statement on Friday, Mr George described the Chancellor’s decision to increase the threshold for Small Business Rates Relief (SBBR) from £12,000 to £18,000 as “unbelievable” and urged Government Ministers to think again. 

The sector has seen many years where second homeowners have ‘flipped’ their properties, to be registered for business rates rather than council tax and then apply for Small Business Rates Relief and pay nothing. Meaning they are liable for neither (double) council tax, nor business rates. 

Mr George said: “In Cornwall alone, more than half a £billion of taxpayers money has been handed out to holiday homeowners (most of whom live outside Cornwall) in the last decade. We could’ve solved our housing problems with that kind of money!” 

In Parliament yesterday, Andrew George challenged Secretary of State for Housing, Communities and Local Government, Angela Rayner MP, to back his Private Members’ Bill – the Homes and Planning Bill – which comes for it’s second reading on Friday 13th November, and contains provisions to support homes for locals, and to slow the proliferation of second homes in areas like Cornwall. He said: 

“[The Homes and Planning Bill] addresses both the need to put first homes before second homes, and need before greed in the planning system. I hope Labour MPs will come along to support the Bill. 

“The Government has extended the option to avoid tax altogether by increasing the ratable valuation from £12,000 to £18,000, which has benefitted a larger group of people, those who are wealthy enough to have second properties, who are now able to take advantage of this particular loophole. 

“This money would be better put into social and affordable housing. It is driving inflation in the system and adding the widening inequality. I do hope the Government will look at this issue again.”

NOTES:
Hansard record of the debate can be found here: Budget Resolutions – Hansard – UK Parliament