Carmarthen West and South Pembrokeshire Member of the Welsh Parliament, Samuel Kurtz MS, has accused the Welsh Government of ‘arrogance’ following their refusal to undertake a review of the length of time self-catering holiday properties need to operate as a business to qualify for business rates.

The new rules, introduced in Wales in April 2023, mean that the required rental period for self-catering properties has increased from 70 to 182 days.

Failure to meet this requirement results in the property not being considered a business and instead classified as a second home, which is subject to additional council tax charges.

Responding to a letter from Mr Kurtz, the Cabinet Secretary for Finance, Mark Drakeford MS, confirmed that the Welsh Government - ‘has no plans to undertake a formal review of the changes to the self-catering criteria in the short term.’

Commenting, Mr Kurtz said: “The Cabinet Secretary’s response to reviewing the 182-day limit is tone-deaf at best and arrogant at worst.

“Well before the change in the overnight limit took effect, self-catering businesses throughout my constituency, and across Wales, expressed concern that their businesses would become unviable under the increased rental requirement.

“Indeed, the technical consultation conducted prior to the increase showed that over half of respondents were against the Welsh Government’s proposals.

“Despite suggestions to reduce the rental limit to 140 days – the same threshold used in England – the Welsh Government continues to refuse any adjustment.

“The way to ensure houses for local people is not by punishing legitimate businesses who bring money into the local economy.

“Had the Welsh Labour Government delivered on their housing objectives and built enough new homes, which they never have, then constituents of mine who want to own their own home would have the opportunity to do so,” he added.

At last month’ meetings of Pembrokeshire’s full council, members were recommended to back the second homes council tax premium remaining at the current 200 per cent, with the long-term empty property rates also remaining at the current levels, and to write to Welsh Government asking for a reduction in the 182-day criteria threshold for holiday lets rate relief.

At the meeting, two alternative proposals for a lower second homes premium rate were brought before members; a 100 per cent premium by Conservative group leader Cllr Di Clements, and 150 per cent by Independent Group (IPG) leader Cllr Huw Murphy.

After Cllr Murphy’s amendment was backed, a later proposal by Cllr Alan Dennison to change the empty property premium to 300 per cent after two years was deferred, being considered by the council tax working group before coming before Pembrokeshre County Cpuncil’s Cabinet at its December meeting.

In putting forward the case for continuing with a 200% premium, Cabinet Member for Finance, and Labour county councillor Josh Beynon said: “This policy enables the council to raise funds that are then split between affordable housing and funding frontline services, in particular, those services that have been negatively impacted by the number of second homes”