Councillors in Pembrokeshire have agreed to lower the controversial levy on second homes for the second year running, cutting the premium from 150% to 125% following a knife‑edge vote at a cabinet meeting this week.
Narrow vote after heated debate
The decision follows last year’s reduction from 200% to 150%, with councillors now opting for a further cut. An amendment from Cllr Mark Carter, backed by Cllr Di Clements, sought to remove the premium entirely and return the rate to 100%.
But Cllr Alistair Cameron, cabinet member for corporate finance efficiencies, warned that such a move would create a £2.8m budget pressure in 2026‑27, equivalent to a 3% rise in general council tax.
Council leader Cllr Jon Harvey added: “The reality is if this amendment is approved we’ve got to find another £2.8m – either cuts or we put the council tax up by that amount. I would rather be looking after the majority of council tax‑payers in Pembrokeshire rather than supporting this 100%.”
Cllr Mike Stoddart argued the opposite, saying: “Very simply I don’t agree we can chisel money out of these people (second home owners) so we don’t have to go to our people; we’re acting to our own electoral advantage. It’s totally unfair to pay double the council tax and using the services a lot less.”
When the 100% amendment was defeated by 29 votes to 21, Cllr Phil Kidney proposed a compromise of 125%. That motion passed by just one vote — 26 in favour, 25 against — leaving the council facing a £1.4m shortfall.
Impact on second home owners
Under current Welsh Government rules, second home owners must pay the premium unless they can prove their property is let for at least 182 days a year.
The Welsh Government is consulting on changes that could allow owners to average lettings over several years, or to count up to 14 days of free charity use towards the 182‑day threshold. The consultation runs until 20 November, with any new legislation due to take effect from 1 April.
High concentration of second homes
A council report shows 13.8% of homes in Pembrokeshire currently have no usual resident, down from a peak of 14.6%.
Four communities — Dale, Lamphey, Newport and The Havens — have rates above 40%, while a further 14 communities exceed 25%.
