Second homes and public spending in Cornwall

Some mixed messages from Cornwall's Liberal Democrat MPs about second homes and public spending in Cornwall.

Their latest press release claims they "successfully campaigned to reverse the Conservative policy of allowing second homeowners to pay half the council tax that full-time residents pay." In fact, the Labour Government decision to make second home owners pay 90 per cent of full council tax has frequently been cited as a complaint by local Liberal Democrats when arguing that second homes should need change of use planning permission.

The reality is that second home owners can switch their properties to business rates - which are lower than council tax - by identifying them as holiday lets, and these switches have multiplied since second home council tax increased.

Other tax breaks associated with letting second homes have already been ended by Labour in Government from April 2010. So it is laughable that Dan Rogerson MP and Julia Goldsworthy MP's political press releases say they are only now lobbying for this change, which was announced by Chancellor Alistair Darling in the 2009 pre budget report.

What needs to be understood - as no doubt it is by local MPs - is that the business rates which are collected locally - like the tax breaks second home owners will now lose - are central government revenue. That is one reason why I do not support requiring change of use planning permission for second homes. There is a danger that it would reverse the positive impact of the 90 per cent council tax received from some second home owners.

The one exception to this is the local business rates which support Business Improvement Districts - including those in Falmouth and Truro. These support local events and other improvements which benefit the local community and Cornwall's economy.

And as someone who consistently supported the Sustainable Communities Act, I look forward to more detailed reports on public spending in Cornwall.