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Vaughan Gething – 2022 Statement on a Statutory Licensing Scheme for all Visitor Accommodation in Wales

The statement made by Vaughan Gething, the Welsh Minister for the Economy, in the Welsh Parliament on 15 November 2022.

Diolch, Dirprwy Lywydd. I am pleased to have the opportunity today to provide an update on the steps we are taking to help secure a sustainable and thriving visitor economy that supports and enhances communities across Wales. The visitor economy is rapidly changing, and the role of visitor accommodation presents major challenges for communities across the world. For example, the growth of online booking platforms has brought many benefits, such as new routes to market and increased consumer choice. However, we are aware of the concerns around compliance with existing requirements and the impact of short-term lets on housing stock and our communities.

Our plans to develop a statutory licensing scheme will be focused on levelling the playing field as part of a long-term response to the major challenges that we face. Our co-operation agreement with Plaid Cymru commits to a statutory licensing scheme for holiday lets as part of a package of measures to address the negative impact second homes and short-term holiday lets can have on the availability and affordability of housing for local people in our communities. In July of this year, the First Minister and the leader of Plaid Cymru confirmed plans to introduce a statutory licensing scheme for all visitor accommodation, including short-term lets, making it a requirement to obtain a licence, with the aim of raising standards across the tourism industry.

Prior to that, and over the course of the past year, we have been exploring and engaging with stakeholders how such a scheme could work in Wales. Contractors were appointed to undertake this work last year and they conducted interviews and focus groups with key stakeholders from local authorities, sector representative bodies and accommodation operators. They explored the benefits of such a scheme and the key considerations of how such a scheme could be taken forward and implemented here in Wales. A review of how other destinations globally approach such schemes was also taken into account. This initial work has shaped the consultation that the Government will look to be launching shortly.

But first, Dirprwy Lywydd, I’d like to outline the aims and proposed benefits of such a scheme. The primary aim is to establish a level playing field for all visitor accommodation businesses operating in the sector. The concern around the lack of a level playing field has been a long-standing area of discussion. Specifically, there are concerns that certain parts of the sector, for example informal short-term lets, do not meet or comply with their statutory obligations, whereas established, bona fide businesses do. A statutory licensing scheme could provide the mechanism to address this through requiring operators to evidence that they have certain requirements in place, such as the correct insurance, confirmation of planning status, evidence of fire-risk assessment, gas safety certificate, proof of electrical safety, to list a few examples. This scheme will help to ensure that there is a consistent standard that all operators should meet. Having a scheme where visitor accommodation businesses must meet a certain threshold of requirements conveys a very clear message to consumers that visitor accommodation businesses in Wales meet certain requirements on standards and safety.

A scheme would also give us enhanced intelligence—a comprehensive database, which is not currently available, of exactly who is operating in the industry. It is currently not possible to determine how many visitor accommodation businesses there are in Wales or in any given community. Understanding the scale and the nature of the sector will be an important tool in developing future policies at either a local or national level. Establishing a statutory database of licensed visitor accommodation businesses would give the Welsh Government and other partners, such as local authorities, a mechanism to communicate on key issues relating to the sector. We saw how challenging it can be to reach all parts of the sector through our recent experiences during the COVID-19 pandemic.

We also recognise that a statutory licensing scheme will provide an important foundation for other policy areas. Having the information provided by such a scheme will provide data on the scale and nature of our tourism offer to inform policy considerations, locally and nationally, around evidence-led management of second homes, holiday lets and developing the visitor economy and infrastructure. It could also support the collection of a visitor levy. For the visitor levy, having a licensing system would provide a comprehensive list of all visitor accommodation providers in an area. This could support the ongoing administration of the levy, as those who will require a licence will likely be the same as those who will be required to charge and collect a levy. There are clear links between these proposals, and I would encourage contributions to the 12-week visitor levy consultation, which closes on 13 December.

As I previously mentioned, in looking to establish a statutory licensing scheme, we’re also looking at similar mechanisms operational or in development across the world. In the UK, different approaches have been taken by our neighbours and are at different stages of development. In Northern Ireland, visitor accommodation providers must receive certification by Tourism Northern Ireland in order to operate, and this scheme has been in place since 1992. The Scottish Government has legislation in place requiring all short-term let hosts and operators to obtain a licence to operate, unless specifically excluded. Existing hosts and operators have until 1 April next year to apply for a licence in Scotland. And in England, the Department for Culture, Media and Sport recently closed a call for evidence on the potential introduction of a tourist accommodation registration scheme. The purpose of the DCMS consultation is to better understand the benefits and challenges of the increase in short-term and holiday letting in England, and to gather initial evidence on the potential impact of a range of possible policy responses. There are other examples too, such as the compulsory schemes operating in the Isle of Man and in the Republic of Ireland. We’re looking to learn from these various examples, including what lessons can be learnt from the Rent Smart Wales model in terms of developing our own scheme.

Following a series of engagement sessions with key stakeholders over recent months, we will shortly be launching a formal consultation to seek views on the shape and nature of the proposed statutory licensing scheme here in Wales. Feedback on some of the aims underlying a proposed licensing scheme has been supportive, especially in relation to establishing a level playing field, developing better intelligence and increased consumer confidence. However, some concerns have been raised around the perceived regulatory burden that may accompany a licensing scheme. This includes the work involved in providing evidence of current use in relation to planning, and the role played by local authorities in meeting this demand.

Both the Welsh Government and Plaid Cymru agree that a statutory licensing scheme offers the most robust mechanism for delivery in Wales, being an approach that sets a standard for visitor accommodation businesses to operate. However, the consultation will enable a range of views to come forward, including on the requirements of a licensing scheme. We’ll be seeking views on how such a statutory scheme could operate, be that nationally or at a local level, or a hybrid model combining elements of both. In addition, we’ll be looking to gather views on whether all visitor accommodation businesses should require a licence, or whether there should be any exceptions. We’ll also look to test how frequently licences should be renewed, and the licence fees that might need to be charged. In deciding on any fee structure, we are of course mindful of the pressures on businesses in the current climate.

We believe that most people would want to operate within the law, therefore one of the aims is to develop a scheme that will ensure a high level of voluntary compliance. However, proposals for compliance and enforcement measures, including penalties, to ensure fairness will be tested at consultation. We will be launching the consultation in December and will be encouraging our stakeholders to engage in the process. Diolch yn fawr. I’m happy to take questions.

03/12/2022
Dawn Bowden – 2022 Statement on a Culture Strategy for Wales

The statement made by Dawn Bowden, the Welsh Deputy Minister for Arts & Sport and Chief Whip, on 15 November 2022.

Developing a Culture Strategy for Wales is a key Programme for Government and Co-operation Agreement commitment within my portfolio.

As Wales begins to recover from the impacts of the Covid-19 pandemic, and at a time when people’s wellbeing and resilience is being adversely affected by rising costs of living and difficult financial forecasts, we must maintain a focus on those areas that make a positive difference to people’s everyday lives. We know that cultural and creative experiences are valued by the public, and that our arts, culture and heritage sectors contribute to personal wellbeing and community cohesion. I am pleased therefore to be able to share a short progress update on the development of a new culture strategy for Wales.

Working with Plaid Cymru designated members, we have agreed that the scope of the strategy will include arts, museums, libraries, archives, and the historic environment, and it will look at how we can best support and develop these sectors in Wales. The strategy should consider, but not be limited to, the role of culture and the arts in promoting positive health and wellbeing, equalities, lifelong learning and skills, supporting digital developments in Wales, the visitor economy, and the Welsh language, together with resilience building to enable effective recovery from the pandemic and delivery on the requirements of the Future Generations Act.

The Strategy will focus on how we can protect, conserve, and promote the arts, culture and historic assets and collections both now and for future generations. It will develop an inclusive, holistic approach to supporting our sectors and will have a focus on improving equitable access to and participation in all aspects of cultural life in Wales. It will also seek to enhance the close inter-operability of the arts, culture and heritage sectors, so they can collaborate more effectively, across sectors and in partnership with community groups and other stakeholders.

Following a recent procurement exercise, a lead partner has been appointed to work collaboratively with Welsh Government to produce a new strategy for publication in 2023.

Over the next few months, the contractor will undertake intensive research and engagement activity. This will involve working closely with partners across the arts, culture and heritage sectors, including but not limited to the four cultural sponsored bodies, Cadw, local sector organisations and people who work in these sectors on the ground. The contractor will also seek input from communities across Wales, especially those that are traditionally excluded or under-served.

The development of the strategy will be supported by an Overarching Steering Group, which will scrutinise and critically evaluate progress on the development of the strategy, providing conceptual thinking and informed challenge to Welsh Government as required.

My focus is on ensuring that the new strategy is innovative, ambitious and fit for purpose, and that it is a strategy that will be welcomed by the culture and heritage sectors and by the people of Wales. I will keep the Senedd informed of significant milestones as the work progresses.

03/12/2022
PRESS RELEASE : Childcare Offer extended in Wales as a new digital service is launched [November 2022]

The press release issued by the Welsh Government on 15 November 2022.

A new national digital service which will streamline the Childcare Offer for parents and childcare providers has launched.

The Childcare Offer has also been extended to more families, and parents in education and training can now apply for up to 30 hours of government funded early education and childcare for children aged three and four.

Currently the Childcare Offer is delivered by local authorities who use different systems to process parent applications and pay providers for Childcare Offer hours provided. The national digital service will replace these systems so that every local authority, parent and childcare provider will use one single service.

The new national digital platform is available bilingually online and can be accessed on mobile devices including tablets and mobile phones and will ensure parents and childcare providers across Wales have the same experience no matter which local authority area they live in.

Parents eligible to receive the Childcare Offer from January 2023 will be able to apply from now through the new service.

Parents already accessing the Offer will not need to do anything and will remain within their local authority system. However, if they wish to receive Childcare Offer funding for another child from January 2023, they will need to apply via the national digital service.

Launching the Childcare Offer national digital service at a nursery in Cardiff the Deputy Minister for Social Services said:

Our ground-breaking Childcare Offer is making a real difference to parents right across Wales, and we continually look for ways we can expand or improve our Offer. I’m delighted to announce the launch of our new Childcare Offer digital service. Having a single, national system will ensure a simple, streamlined service for both parents and childcare providers across Wales. I want to thank everyone in the childcare sector, local authorities and parents who have helped us to deliver the Childcare Offer digital service.

We are committed to supporting working families with the costs of childcare and it is fantastic we are able to increase the number of families accessing the Offer. I am pleased over 168 additional families so far have been helped by this expansion. Increasing support with childcare costs for parents in education and training reflects the value we place on supporting people to improve their employment prospects by gaining qualifications, retraining or changing career paths.

Claire Potter, Operations Manager at Darling Buds Nursery said:

The new childcare offer digital service will have a positive impact to our settings, as we have children from multiple Local Authorities attending who access the funding. The new service will enable us to use one national portal to submit claims regardless of which Local Authority authorised the childcare offer funding.

In addition, the service will have a positive benefit to our parents/carers as they will be able to access the portal, and view the agreed hours and any remaining hours for them to utilise. Thus creating a transparent process which will eliminate any confusion for parents/carers and ourselves, especially where parents use the service of more than one childcare provider.

Cabinet Member for Children’s Social Services, Cllr Ash Lister said:

We want to make the process of applying for a childcare offer place, as simple and straightforward as possible, so that parents and families requiring a place, can easily access what is available to them. The launch of the Digital Service will help simplify the application process and will also provide childcare providers with an efficient way of claiming and receiving payments

We are committed to supporting the delivery of the Childcare Offer which continues to support caregivers to access training and employment, allowing them to reduce childcare costs. For the children, attendance at registered childcare supports child development and school readiness, providing opportunities for play, learning and socialisation with their peers.

03/12/2022
PRESS RELEASE : This is Wales – taking Wales to the world during the FIFA World Cup [November 2022]
The press release issued by the Welsh Government on 14 November 2022.

Welsh Government plans to promote a progressive, modern Wales on the global platform provided by the FIFA World Cup in Qatar have been unveiled by Economy Minister Vaughan Gething today.
- ‘Lleisiau’ announced to be ambassadors for Wales in Qatar
- New global marketing campaign launched
The campaign will project Wales’ values and secure a positive legacy from the country’s first World Cup campaign in 64 years.

With less than a week to go until Wales plays the first group match against the USA, the Welsh Government’s programme of activities is well underway in a bid to showcase the best of Wales on a global stage and introduce the nation to new audiences.

Today, the Minister will announce former Welsh footballer Prof. Laura McAllister, Olympic silver medallist and World Champion Colin Jackson CBE, London-based DJ and presenter, Katie Owen and renowned Chef, Bryn Williams, as ‘Lleisiau Cymru’.

The ‘Lleisiau Cymru’ team of ambassadors will act as influential voices for Wales in Qatar, joining Ian Rush and Jess Fishlock who are both the FAW ambassadors for the 2022 World Cup.

Lleisiau Cymru’s Laura McAllister, said:

The World Cup offers an unprecedented opportunity for us to raise the profile of Cymru whilst also staying firm to and promoting our values of diversity, inclusivity and respect for human rights. As ‘Lleisiau Cymru’ we will ensure we maximise this unique opportunity for Wales, for football and beyond.

An enhanced global marketing campaign is live, focusing on core target international markets including the USA and key European markets. The marketing campaign will promote Wales as an open, progressive nation, as a great place to do business and visit.

The campaign is focused on the people of Wales, it’s an invitation from a warm, welcoming country. The campaign has a real, natural, colloquial feel conveying that everyone’s welcome – wherever you’re from there’s a place for you here. A series of films have been released which shows the people of Wales inviting the world to Wales, showing the people, culture, community and landscape – a portrait of a modern, progressive and diverse country that’s welcoming the world in.

Announcing the Welsh Government’s plans on the day the Wales squad fly to Qatar, Economy Minister, Vaughan Gething, said:

I’m delighted to announce our comprehensive plans to promote an open, progressive Wales to the world during the FIFA World Cup. When people see Wales, they will see our values.

A global Audience of 5 billion people gives us a unique opportunity to showcase our nation and create a lasting legacy.

We are introducing Wales to the world, inviting them to learn more about us, our culture, our people, and welcoming them into Tîm Cymru. The campaign features stories from Wales, featuring authentic voices from across our communities. They are stories that’ll make people feel something about us, and make people want to be part of what we’ve got going on in Wales.

As a government, we have been clear we will proactively use Wales’ place in the World Cup in Qatar to promote our strong Welsh values. In Wales, we are passionate about human rights and workers’ rights and believe that people should be free to live as their true authentic selves. We will continue to proudly advocate Wales’ approach to human rights, LGBTQ+ rights, political and religious freedom, inclusive education and fair work.

This is an opportunity to promote Wales, but we also have an obligation to explain why we believe these values should be recognised. The management team, players and the FAW have all spoken out on these issues and they have the full support of the Welsh Government in promoting our values as a nation.

A distinctive Welsh presence will also feature in the exhibitions produced by participating nations. As the tournament will feature a strong UK Government presence, the Welsh Government is committed to ensuring that Wales is recognised as a nation and as a society with progressive values.

Following the announcement of Wales’ World Cup squad last week, a diverse representation of artists and cultural organisations will take to the stage to share Wales’ unique culture globally.

The artists include rapper Mace the Great; Yr Urdd, with Côr Dyffryn Clwyd; The Barry Horns – a brass band made up of Welsh football fans; Welsh rap artist Sage Todz; and multi-instrumentalist Kizzy Crawford, and many others.

They will perform in Qatar, the USA and Canada, as well as performing at international events as part of Gŵyl Cymru a national celebration taking place throughout Wales and the world.

Rapper, Mace the Great said:

I’m looking forward to returning to the US after my debut at SXSW earlier this year. This is a huge opportunity for me to develop as an artist, as well as representing Wales at such an important moment for Welsh football and culture. I’m very excited to be showcasing in New York, working on a new video, and continuing my collaboration with Show Racism the Red Card and FAW.

Representing the young people of Wales in Qatar will be Côr Dyffryn Clwyd on behalf of Urdd Gobaith Cymru, who are also a part of the Culture Squad.

Sian Lewis, Chief Executive of Urdd Gobaith Cymru, said:

Urdd members are great ambassadors for Wales, our language, culture and country. We’re proud that Côr Dyffryn Clwyd will have this amazing opportunity to support the team but to also take Wales to the world and the global audience of the world cup on behalf of the young people of Wales. As an organisation we aim to inspire the next generation by offering unique experiences to extend their horizons and build self-confidence and we can’t wait to be part of the Wales Cultural Squad.

To support Welsh Government objectives of promoting Wales, engage in diplomacy, and, importantly, communicate Wales’ values as a nation, the First Minister will attend Wales’ opening group game against the USA, while the Economy Minister, Vaughan Gething will attend the final group match against England game. These represent the most significant opportunities to raise the profile of Wales and make connections where we can share Wales’ interests and values.
03/12/2022
PRESS RELEASE : Consultation launched on mandatory CCTV in slaughterhouses in Wales [November 2022]

The press release issued by the Welsh Government on 14 November 2022.

A consultation begins today [Monday, 14 November] on proposals to require CCTV in all slaughterhouses in Wales.

This is a Programme for Government commitment and is included in the Animal Welfare Plan for Wales, which seeks to maintain and improve standards of welfare for all kept animals.

Most slaughterhouses in Wales already have CCTV. This requirement would ensure all are covered, supporting consumer confidence welfare standards are being delivered.

Minister for Rural Affairs Lesley Griffiths said:

Animal welfare is a priority for the Welsh Government, and our ambition is for all farmed animals to have a good quality of life and to be free of suffering.

We have committed to ensuring all slaughterhouses in Wales have CCTV, and I’m pleased to announce the consultation today.

While the vast majority of slaughterhouses have CCTV in Wales, I want to ensure all animals have the same level of protection.

The consultation will run for 12 weeks and is available on the Welsh Government website.

03/12/2022
Jeremy Miles – 2022 Statement on the Teachers’ Pay Award in Wales

The statement made by Jeremy Miles, the Welsh Minister for Education and the Welsh Language, on 14 November 2022.

I can announce today there will be an uplift of pay for our highly skilled and hardworking teachers in Wales.

On 21 July, subject to consultation with key stakeholders, I agreed in principle to accept all of the Independent Welsh Pay Review Body’s recommendations for 2022/23 including an uplift of 5% to all statutory salary points on all pay scales and for all allowances from September 2022. I can confirm today that we will be accepting the Review Body’s recommendations.

The new starting salary for teachers will therefore be £28,866 and the salaries of more experienced classroom teachers will increase by £2,117 to £44,450. Additionally, all allowances will also be uprated by 5%.

I accept that some may be disappointed that a higher award could not be provided and recognise the legitimate right of all workers to seek a fair and decent pay rise during this challenging time of inflation and cost of living rises.

However, as additional funding has not been made available by the UK Government, we are not in a position to further address these issues over and above what has previously been considered. The Welsh Government’s budget will be worth £4bn less over the three years of the current settlement – £1.5bn lower next year. This is before the much touted further budgetary cuts the UK Government claims it will make imminently. Within this context, it is simply unaffordable, and would be irresponsible, to propose higher pay rises. We repeat our calls for the UK Government to finally do the right thing and act urgently to restore Wales’s budget so that we can support our public services.

Members will recognise that there is a huge amount of ongoing financial uncertainty.

In relation to future pay awards from September 2023, no compelling evidence was provided to alter my earlier proposal for the IWPRB recommendations to be kept under review and be used as a planning assumption, subject to such a review.

I also welcomed the IWPRBs recommendations on improvements to some key terms and conditions of teachers, notably in relation to remuneration of part-time teachers for TLR allowances; and the need to review the remuneration of ALNCos. I thank both employers and teacher unions for working alongside us on these matters to further improve terms and conditions for teachers in Wales. In particular, I welcome the agreed revisions to the required methodology for calculating TLR allowances for part time teachers which will improve the transparency and fairness for those part time teachers carrying out these roles from now on.

Consequently, I will today make the School Teachers’ Pay and Conditions (Wales) Order 2022 which gives effect to the School Teachers’ Pay and Conditions (Wales) Document 2022.

The pay award will be backdated to 1 September 2022. Timing of the implementation of the award will be a matter for employers. Initial discussions with local authorities have been positive, with the aim to arrange for back pay to be passed on as soon as possible, hopefully before the end of December.

Moving forward, I welcome the opportunity to continue to work together with stakeholders on a comprehensive review of the structure of teachers’ and leaders’ pay and conditions. This will provide us with further opportunities to improve and enhance the system and, where we can, make it fairer and more transparent for all teachers. Such partnership working will also help to promote teaching as a profession of choice for graduates and career changers.

03/12/2022
PRESS RELEASE : Welsh Government scheme helps 1,100 unemployed people facing hidden barriers to start their own business [November 2022]

The press release issued by the Welsh Government on 14 November 2022.

More than 1,100 unemployed people facing hidden barriers to entering the labour market have been helped to start their own business thanks to a Welsh Government grant scheme, Economy Minister Vaughan Gething has announced.

They include unemployed single mum Sami Gibson, who was determined to build a better life for herself and her child.

Sami had dreams of setting up her own business but faced several barriers – she had no laptop or internet connectivity and was living in a remote rural location.

Thanks to support from the Welsh Government’s Business Wales service, Sami has set up a new business called Roots, which grows and sells herbs and other plants sustainably. Roots also creates blends such as stuffing herb mix with wild bilberries, a nasturtium salt, and pizza sauce herbs.

Sami was awarded a Barriers to Start Up Grant worth £2,000, which she used to purchase equipment and marketing materials for her start-up.

Sami said:

“Thanks to invaluable support from Business Wales, I now trade regularly at markets and I have a thriving website for sales.”

The Barriers to Start-up Grant for over 25-year-olds is a revenue grant to help economically inactive and unemployed individuals over the age of 25 to start up a business in Wales.

It particularly targets individuals facing barriers to starting their own business or to enter the employment market. It is part of a package of support that includes one-to-one advice and webinars to build confidence in business practices and develop plans for starting a business.

Of the successful applicants in the latest phase of the grant scheme 57% were female, 26% were disabled, and 13% identified themselves as Black, Asian and Minority Ethnic.

The fund supports the Welsh Government’s aim of eradicating the gap between the employment rate in Wales and the UK by 2050, with a focus on fair work and raising labour market participation of under-represented groups.

Speaking at the start of Global Entrepreneurship Week, Economy Minister Vaughan Gething said:

The Welsh Government is determined to create a fairer and more prosperous Wales, where people are supported to fulfil their true potential.

We are working hard to create good-quality jobs in communities across Wales. That includes supporting people into work, regardless of their individual circumstances or the barriers they face to employment.

We are also focused on supporting more people to start their own business, fostering an even more vibrant SME sector, and prioritising enterprises built on sustainability and the industries and services of tomorrow.

I am delighted this grant initiative has already helped so many people, including those from groups under-represented in the labour market, and those in and out of work with long term health conditions.

As well as assisting individuals aged over 25 to start up a business, the Economy Minister approved £5m over three years to support young people into self-employment with advice and financial support to deliver on the Young Person’s Guarantee. The Young Person’s Start-up Grant for those aged under 25 went live in July 2022 and is administered by Big Ideas Wales. This grant will run until 2025.

03/12/2022
PRESS RELEASE : Call for more funding for NHS pay in Wales [November 2022]

The press release issued by the Welsh Government on 13 November 2022.

The UK government has been urged to increase the amount of funding available for NHS pay.

Ahead of the Autumn statement, Scottish Health Secretary Humza Yousaf and Welsh Health Minister Eluned Morgan have written to UK Health Secretary Steve Barclay to ask for additional funding to help avert strike action this winter in the NHS.

The letter reads:

We wanted to write to you in advance of the Chancellor’s Autumn Statement on 17th November to once again make the case for additional funding for our hardworking NHS staff.

In recent weeks the Deputy First Minister of Scotland and the Welsh Government Minister for Finance and Local Government have written to His Majesty’s Treasury to make clear the need for additional funding for public services.

The Royal College of Nursing have announced a sweeping legal mandate for industrial action across the UK. In Scotland, they have joined several other unions representing NHS staff in gaining a legal mandate for industrial action with ballots expected to confirm a mandate in the rest of the UK.

The risk to the NHS of industrial action this winter is profound, and we all need to do all we can to avert industrial action in any form. The NHS across the UK continues to feel the effects of the pandemic as it recovers and remobilises, and any action is likely to have catastrophic effects in all parts of the UK.

We are experiencing a cost of living crisis and the anger of NHS staff is entirely understandable. Sky rocketing inflation combined with high interest rates, a direct result of the havoc caused by the UK government’s mini-budget, means that we are simply unable to come close to matching the expectations of NHS staff across the country. While the support provided by the UK government on areas such as support for energy bills is welcome, it has not gone nearly far enough.

Media reports suggest that the Chancellor is considering reimposing austerity on the people of the UK again, for which there is no mandate, through extensive spending cuts. That would be a disaster for our public services, including the NHS, at a time when they need more investment, not less.

We would therefore implore you to work with us to make the case to the Chancellor in advance of his Autumn Statement for increased funding for the NHS and the devolved governments as a whole, primarily to pay our hard working NHS staff a fair pay rise in the face of the cost of living crisis this winter, and avoid what could be catastrophic industrial action in the NHS.

03/12/2022
Rebecca Evans – 2022 Statement on Council Tax Premiums in Wales

The statement made by Rebecca Evans, the Minister for Finance and Local Government in Wales, in the Welsh Parliament on 11 November 2022.

On 24 May 2022, I announced the next steps being taken by the Welsh Government, following our consultation on local taxes for second homes and self‑catering accommodation. These steps form part of our plans to ensure property owners make a fair contribution to the communities where they have homes or run businesses. This work, in turn, contributes to the Welsh Government’s three-pronged approach to addressing the impact that large numbers of second homes and holiday lets can have on communities and the Welsh language.

Following our consultation, the Welsh Government is of the view that properties let out as self-catering accommodation on an infrequent basis should be liable for council tax. We have therefore legislated to increase the number of days for which self-catering properties must be available to let or actually let in order to be classified as non‑domestic. The new letting criteria will apply from 1 April 2023 and will ensure that self-catering properties are classed as non‑domestic only if they are being used for business purposes for the majority of the year. We have also legislated to increase the maximum level at which local authorities can decide to apply council tax premiums to second homes and long-term empty dwellings to 300% from 1 April 2023.

I recognise the strength of feeling among self-catering operators in response to the changes and have listened to the representations from individual businesses and industry representative bodies. We have considered whether further measures are needed to accompany the changes to the local taxes.

The Welsh Government recognises that some self-catering properties are restricted by planning conditions preventing permanent occupation as someone’s main residence. The Council Tax (Exceptions to Higher Amounts) (Wales) Regulations 2015 were made to accompany the introduction of the discretionary powers for local authorities to apply council tax premiums and prevent specified types of second homes and long-term empty dwellings from being charged a premium. These regulations already provide for an exception from a council tax premium for properties restricted by a planning condition preventing occupation for a continuous period of at least 28 days in any one‑year period.

I am publishing today a technical consultation to invite views on the draft Council Tax (Exceptions to Higher Amounts) (Wales) Regulations 2023. The draft Regulations extend the existing exception to apply to properties with a planning condition which specifies that the property may only be used for short term holiday lets or which prevents their permanent occupation as a person’s sole or main residence. Such properties would become liable for council tax at the standard rate if they do not meet the letting criteria for classification as non-domestic property but they could not be charged a premium. This is consistent with our policy view that property owners should make a fair contribution to local communities either through local taxation or through the economic benefit they bring to an area.

It is intended the application date for introducing the extended exceptions will be 1 April 2023, in conjunction with the changes to the letting criteria and to the maximum council tax premium. It will therefore apply only to properties that become liable for council tax after 1 April 2023.

I am also publishing a consultation on the revised guidance on council tax premiums for long‑term empty dwellings and second homes. This includes additional options that are available to local authorities in the event that self-catering properties restricted by planning conditions do not meet the letting criteria.

The consultation on the draft guidance will run alongside the technical consultation for a period of 6 weeks. Responses are requested by 22 December 2022. All responses will be taken into account in considering any further developments.

As part of the Cooperation Agreement with Plaid Cymru, we are committed to taking immediate action to address the impact of second homes and unaffordable housing in communities across Wales, using the planning, property and taxation systems. As we continue to progress the package of measures and drawing on the latest evidence base, we will keep under constant review the range of levers available to use and how they may be deployed most effectively to meet our policy objectives and avoid unintended consequences.

03/12/2022
PRESS RELEASE : Additional flexibility in the application of council tax premiums and letting criteria in Wales [November 2022]

The press release issued by the Welsh Government on 11 November 2022.

The Welsh Government has proposed that more categories of properties will be excepted from paying the council tax premium on second homes, managing the impact of new local tax rules to distinguish between second homes and self-catering accommodation.

There will also be additional guidance on the discretion local authorities will have in the application of the premiums.

It follows ongoing discussion and engagement with councils, communities and the tourism industry.

The tax changes, which will be in place from 1 April 2023, are intended to develop a fairer housing market and ensure owners make a fair contribution to the communities in which they own homes or run businesses. The changes provide a clearer demonstration that the properties concerned are being let regularly as part of genuine holiday accommodation businesses.

The criteria for self-catering accommodation being liable for non-domestic rates instead of council tax is increasing from being let for at least 70 days in any 12‑month period to being let for at least 182 days.

The change announced today will mean two further categories of property will be exempt from council tax premiums if they no longer meet the letting criteria. It will apply to all properties that are restricted by planning conditions which mean that they can only be used as short-term holiday lets or which prevent them from being used as someone’s main residence.

Updated guidance being issued to local authorities for consultation also confirms the discretion available in the event that holiday lets fail to meet the new letting criteria.

The move is intended to ensure the changes being taken forward are made as fairly as possible and strike the balance between the needs of communities with large numbers of second homes and holiday lets as part of a sustainable tourism sector.

As part of the Cooperation Agreement with Plaid Cymru, the Welsh Government is committed to taking immediate action to address the impact of second homes and unaffordable housing in communities across Wales, using the planning, property and taxation systems.

Rebecca Evans, Minister for Finance and Local Government, said:

I recognise the strength of feeling among self-catering operators in response to the changes to the letting criteria, and I have listened to the representations from individual businesses and industry representative bodies. These changes will give more flexibility to local authorities and will ensure that the contribution property owners make to the communities where they have homes or run businesses is fair.

Designated Member Sian Gwenllian MS said:

By working together on a cross-party basis in in the Senedd, we have been able to act quickly to begin to address longstanding injustices and market failures in the housing system that have an impact on communities across Wales. Our aim is to increase the availability and affordability of housing for local people to rent and to buy. Today’s announcement is a sensible step to take to ensure that the package of measures we are taking forward can be implemented as effectively as possible – to make the biggest difference to people and communities whilst mitigating any unintended consequences.

There are a number of existing exceptions from the council tax premiums. For example, properties which are subject to a planning condition preventing occupation for a continuous period of at least 28 days in any one-year period cannot be charged a premium.

03/12/2022