 Pembrokeshire Council Launches Consultation on Council Tax Premiums
Pembrokeshire Council has initiated a consultation on Council Tax premiums, distinct from the recent Conwy Council consultation. This consultation acknowledges the unique aspects of the self-catering sector and seeks input on the application and duration of discretionary measures.
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VOA Introduces New Self-Catering Questionnaire The Valuation Office Agency (VOA) has released a new, streamlined questionnaire designed to simplify the process for property owners to inform the VOA that their self-catering property qualifies to be assessed for business rates.
Additional Resources: WTA Member, PASC UK CYMRU has developed a Business Rates Guide, which will be accessible to members on their website soon: PASC UK Members' Reports.  Last week on the 16th July, the Senedd approved the Local Government Finance (Wales) Bill, introducing significant changes to local taxation to create a more equitable and adaptable system reflecting current economic conditions. In an Official Statement from Rebecca Evans, Cabinet Secretary for Finance, Constitution and Cabinet Office, emphasized the importance of these reforms as the first local government finance bill since devolution. She highlighted that the changes address long-standing limitations and are designed to create a consistent, effective, and adaptable taxation framework for modern Wales. For further details, visit the official announcement: Senedd passes Bill to reform local tax system in Wales | GOV.WALES Background on Business Rates in Wales:Non-Domestic Rates (NDR), or business rates, are taxes levied on most non-domestic properties to fund local services. More information can be found here: Business Rates in Wales | Business Wales Key Reforms for Non-Domestic Rates (Business Rates):
 Eluned Morgan has been confirmed as the new leader of Welsh Labour and is poised to succeed Vaughan Gething as the First Minister of Wales, becoming the first woman to hold the role. Morgan, 57, currently serving as the Welsh Health Minister, was the sole contender for the leadership following the closure of nominations on Wednesday.
Morgan's leadership ascension follows the resignation of Gething after a turbulent four months marked by controversies over donations and ministerial dismissals. Although Morgan is now the party leader, she will only officially become First Minister after a confirmation vote in the Senedd. Promoting unity, Morgan ran alongside rural affairs minister Huw Irranca-Davies, who will become the deputy first minister. Expressing her honour at the nomination, Morgan emphasized her commitment to stability, unity, and enabling every individual in Wales to achieve their potential. She also pledged to collaborate with colleagues across the Senedd and the UK Labour Government led by Sir Keir Starmer. Sir Keir Starmer welcomed Morgan's victory, praising her extensive experience and historical significance as the first woman to lead Welsh Labour. The Senedd, currently in recess until September, must be recalled for Morgan to assume her new role earlier, which can happen once the current First Minister resigns. Congratulations have poured in from various political leaders, although criticisms were also voiced regarding her tenure as health minister, particularly concerning record NHS waiting lists. Conservative leader Andrew RT Davies and Plaid Cymru's Rhun ap Iorwerth expressed both congratulations and concerns, questioning her effectiveness and the potential impact on Wales' future. Welsh Liberal Democrats leader Jane Dodds emphasized the need for Welsh Labour to regain public trust after recent scandals and internal conflicts. Morgan's appointment as leader diverges from Welsh Labour's initial timeline, which intended for a new leader to be in place by mid-September. WTA sends congratulations to Eluned Morgan and wish her success in her new role.  Pembrokeshire County Council is looking into the impact of the '182 Day Threshold' rule for self-catering accommodation on the wider tourism economy so vital to the area, whilst Gwynedd Council will bring the so-called Article 4 Direction into effect from 1st September. At a meeting of Pembrokeshire County Council last week, a significant discussion took place regarding the potential relaxation of the '182-day threshold rule' for self-catering accommodation. The rule, introduced by the Welsh Government, mandates that holiday lets must be occupied for at least 182 days (six months) per year to qualify for business rates instead of being subjected to the council tax premiums levied on second homes. Currently, properties in Pembrokeshire that do not meet this criterion are subject to a 200% council tax premium, essentially tripling their tax rate. The focus of the discussion was a question from Cllr Huw Murphy, leader of the Independent Group, who has been advocating for a reduction in the occupancy requirement from 182 days to 140 days to support the local tourism industry. This follows his previous Notice of Motion submitted in October 2023, which was debated but not adopted by the council's Cabinet in December 2023. At that time, the Cabinet decided to review the situation after gathering more evidence over a 12-month period and to communicate their concerns to the Welsh Government. Cllr Murphy's question sought an update on two key points:
Meanwhile, the introduction of the widely anticipated 'Article 4' by Gwynedd County Coucil was confirmed last week by local councillors, who believe that over 65% of the local population is priced out of the immediate housing market. The local authority has already taken advantage of tax powers to raise the premium rate for second homes and short-term lets to a rate of 150%. The direction means anyone within the Council’s designated area will need consent for: (a) change of use of a main residence into a second home or short-term holiday let; (b) change of use of a second home to a short-term holiday let; or (c) change of use from a short-term holiday let to a second home. Properties that are already classed as short lets or second homes when the direction takes effect will not need to apply for permission retrospectively. Gwynedd Council says the new power is “innovative” and a spokesperson added: “Research shows that a significant proportion of people in Gwynedd are priced out of the housing market and that is more evident in communities with higher numbers of holiday homes. It is therefore inevitable that the significant number of houses being used as second homes and short-term holiday accommodation is affecting the ability of the people of Gwynedd to access homes in their communities. "By introducing an Article 4 Direction, the Council will have a new tool to try to control the impact of second homes and holiday accommodation. The change will require owners to submit a planning application for changing the use of residential properties into second homes or short-term holiday accommodation. "Following this decision, Gwynedd will become the first planning authority to use these new planning powers introduced by the Welsh Government. Detailed work has been carried out over the past year to set out the case for the change to be made and we are very grateful to everyone who took part during the public engagement period.”  As legislative powers for a Visitor Levy in Wales will likely be introduced into the Senedd during the autumn, it is interesting to look at how the new levy is unfolding in Scotland. In an article from yesterday's Scottish Financial News, Caroline Colliston talks about how the new Scottish Visitor Levy will impact upon tourism operators. Scottish Visitor Levy – navigating new tourism tax terrain Overnight accommodation providers should be aware of the administrative challenges posed by the soon to be implemented Scottish Visitor Levy, writes Caroline Colliston. On May 28, 2024, the Scottish Parliament passed groundbreaking legislation introducing the Scottish Visitor Levy, commonly dubbed the “tourist tax”. This new legislation, expected to be implemented by Spring 2026, grants local councils the authority to impose a tax on overnight accommodations, aiming to funnel funds back into services and facilities predominantly used by tourists and business visitors. However, despite its noble intentions, the levy brings with it a slew of administrative complexities for the hospitality sector. Having successfully passed the final parliamentary stage, the Visitor Levy (Scotland) Bill is on the verge of becoming law, pending Royal Assent. While Edinburgh and other councils advocated for a flat-rate scheme, Parliament opted for a percentage-based tax based on the price of accommodation, which aligns with their progressive tax system approach. Who does this apply to? The first question businesses will have is who does this apply to? In essence, the tourist tax is a transaction tax that is charged on the provision of “overnight accommodation”. This encompasses any room or area provided to a visitor for residential purposes for a period of at least six hours. This includes hotels, hostels, Bed and Breakfast accommodations, caravan parks, and even campsites, but excludes visiting cruise ships. The Levy will impact the entire hospitality sector, including private landlords and providers of holiday lettings. Accommodations provided under council homelessness duties or for asylum seekers are exempt, following a last-minute amendment to the Bill. Triggering Liability Understanding when liability arises is crucial for businesses. There are two conditions that must be met before the liability will arise. The first condition is that there must be a purchase of a right to reside in overnight accommodation. This is normally at the point where the booking is made. The second is that the visitor must ‘take entry’ into the accommodation. Therefore, cancelled bookings and no-shows do not incur a liability, providing some relief to providers. Calculating the Tax The Visitor Levy (Scotland) Bill sets the parameters for how the tax will operate. However, the Levy’s calculation is where complexity truly sets in. Each local council can set its own rate, if they choose to implement it at all, potentially leading to significant regional variations. Scottish Ministers can enact secondary legislation to cap the maximum rate. The tax amount is determined by multiplying the “accommodation portion” of the transaction by the council’s Levy rate. The accommodation portion is the VAT-exclusive charge for overnight accommodation, with allowable deductions for meals, drinks, parking (unless at a caravan park), laundry services, and entertainment. The process won’t be simple for providers offering multiple services, such as breakfast and access to other leisure facilities, in addition to the overnight accommodation. The starting point will be to estimate the “reasonable costs for facilities or services provided”, and the number of persons accessing those services on the booking, and deduct them from the booking price to find the taxable amount. Special pricing models, like “three nights for the price of two” offers, add another layer of complexity. Unlike the simpler flat-rate systems in other European countries, Scotland’s progressive model aims to tax visitors based on their spending capacity. However, the Scottish Government’s view is that it will be fairer to tax visitors in accordance with their means and so, the higher the price for the accommodation, the higher the tax should be. Preparing for Change In the next 18 months, councils considering the Levy must consult with local communities, businesses, and tourism agencies. Accommodation providers should start reviewing their pricing strategies and business models to accommodate the new tax. As the ultimate liability falls on the accommodation provider, careful planning is essential to manage the cost determination and collection process. Businesses also face the practical challenge of making quarterly payments and submitting returns as well as recordkeeping obligations. To minimise administrative burdens, providers might arrange with booking agencies to collect and remit the tax. However, direct bookings through a provider’s website will require meticulous management. Penalties for late filings start at £100 plus 5% of the tax due, and will escalate if they remain unpaid, underscoring the importance of compliance. The Scottish Visitor Levy represents a significant shift in the financial framework supporting Scotland’s tourism sector. While it promises to enhance local services and facilities, the administrative demands it places on accommodation providers are substantial. As the implementation date approaches, businesses must adapt swiftly to ensure compliance and mitigate potential financial impacts. The next 18 months will be crucial as stakeholders navigate this new terrain, balancing the levy’s intended benefits against its operational complexities. ------------------------------------------------------------------------------------------------------------------------------------------------------------ For further information, please find a link to the final Visitor Levy (Scotland) Bill, as passed https://www.parliament.scot/-/media/files/legislation/bills/s6-bills/visitor-levy-scotland-bill/stage-3/bill-as-passed.pdf Some key points:
 The much-anticipated National Tourism Awards for Wales will return in Spring 2025. Hosted by Visit Wales they celebrate the best of the tourism industry throughout the country. How to enter: winners of the Regional Awards in 2024 will go through to the National (Wales) Awards in March 2025 - so you will need to apply through your county/regional tourism awards to be considered. The categories for the National Tourism Awards 2025 are:
South West Wales:
 The Year of Croeso, or ‘welcome’, announced by VisitWales as part of Wales Tourism Week, aims to celebrate the distinct and varied ways in which people from across the UK and the world can feel welcomed when they holiday in Wales. The friendly welcome visitors get in Wales is a key reason for many choosing to return time and again, a testament to Wales’ culture and its people, and the primary influence for Visit Wales choosing the ‘Croeso’ theme for 2025. From mobility bikes for conquering mountains, to specially adapted changing facilities at iconic beaches, the Welsh Government has been helping to ensure the stunning beauty of Wales is open and welcoming to more people than ever. The Welsh Government’s Brilliant Basics fund has invested £5 million in 29 projects for 2023 to 2025 to support local authorities and national parks to deliver tourism-focused improvements which will benefit both visitors and local communities. Yesterday a new Changing Places specialist facility was opened in Rhosili Bay, making the breathtaking location more accessible and funded by the Brilliant Basics fund. Surfability, a surfing organisation who provide lessons and experiences for people with additional needs, has previously benefitted from Welsh Government funding to better support surfers’ needs, allowing everyone get the most out of surfing whilst having a safe and enjoyable experience. Ben Clifford, Director and Head Coach at Surfability, said: Soon after launching Surfability as Caswell Bay, we encountered issues with suitable changing and toilet facilities. Even in the knowledge that they couldn't change or go to the toilet with dignity, our surfers still wanted to come. We had a few incidents of exposure and people with mobility differences having to struggle into a wetsuit on the floor in a toilet or in the carpark - it was clear that a proper changing places facility was needed. An amazing local lady brought her son surfing with us and took up the campaign to get a changing places facility installed at Caswell. It really is thanks to her persistence that the facility exists at Caswell. Once word got out that Caswell had a Changing Place and that there were beach wheelchairs available, we started to have people visiting from all over the UK! Going surfing can take a lot of courage and be a big new experience. To know that your needs are going to be met and that changing and going to the toilet are going to be as easy as possible means that our students can just focus on the activity. The Minister for Tourism, Jack Sargeant, said: 2025’s Year of Croeso will further strengthen the distinct Welsh welcome anyone can expect when visiting our beautiful country, no matter what they’ve come here to enjoy. I’m excited to be appointed to my new role, particularly in the height of tourism season and to see and hear the plans for this year and into 2025. The visitor economy is crucial to every corner of our nation - bringing in £3.8 billion annually and employing over 150,000 people across Wales. It is so important that the experience of each and every visitor reflects our commitment to providing a welcome for all, for example at the Gower, removing barriers and obstacles which might prevent everyone from enjoying their time to the maximum. Our Brilliant Basics fund has been a real game changer for this. We will continue to do all we can to promote and facilitate our array of unique and unmistakeably Welsh experiences to more and more visitors across Wales, and the Croeso that awaits at each one. In 2023, over 8.5 million visitors from within Britain came to Wales, alongside 892,000 international visitors.  The 15 to 21 July 2024 is Wales Tourism Week and an opportunity to highlight the companies and the people that work so hard to welcome visitors to Wales. Latest figures show that tourism-related industries generated 5.1% of Wales’ GVA (£3.8 billion). In 2023, over 8.5 million visitors from within Great Britain came to Wales, alongside 892,000 international visitors. I want to see the tourism and hospitality industries grow for good still further with strategic and financial support from Visit Wales. We developed our priorities for supporting the visitor economy by listening to the industry and to stakeholders with the goal of growing tourism in a way that is sustainable for the people and places of Wales. Our reform of the rules around second home ownership and business rates, our plans to give local authorities the powers to introduce visitor levies, and our work towards a statutory registration and licensing scheme are designed to implement the Welsh Government’s vision which puts sustainability for future generations at the heart of our activity. I am pleased to announce today three initiatives to support the tourism industry: a new themed year, more funding for basic infrastructure, and the reinstatement of our National Tourism Awards. Visit Wales has been at the forefront of promoting Wales with targeted marketing activity and using levers such as themed years including our latest themed year of Llwybrau, Trails. I am pleased to be able to announce that the new theme for 2025 will be the Year of Croeso. The Year of Croeso will focus on the people of Wales, those working in the industry, our unique welcome and what we love about our landscapes, culture, events, food and drink and attractions. Visit Wales is looking forward to sharing opportunities to be part of the Year of Croeso delivery and the campaign work that surrounds it in coming months. I am also pleased to announce that we will be seeking expressions of interest during the Year of Croeso for a legacy project in Wales that supports tourism for good. We continue to invest in the basic tourism infrastructure around Wales. Brilliant Basics is a fund that supports public, third sector and not-for-profit organisations to deliver small-scale tourism infrastructure improvements. We allocated £5 million to 29 projects over 2023-2025 and I am pleased to announce that the scheme will continue to fund small scale infrastructure projects for a further year from April 2025. We will be inviting expressions of interest in September 2024. Visit Wales also provides financial support to tourism and hospitality businesses through the Wales Tourism Investment Fund. The Fund, which is operated as a partnership between Visit Wales and the Development Bank of Wales, has recently made combined loan and grant investments in the On the Rocks restaurant and bar in Mumbles, The White Lion Inn with Rooms in Machynlleth, a restaurant, bar and accommodation at Tenby Golf Club, Beaches Hotel in Prestatyn and Dylan’s restaurant in Conwy. Our most important partners in delivering a welcoming tourism sector are of course the businesses across Wales that welcome and cater for our visitors. Tourism is a competitive global sector and success is reliant on our businesses investing, innovating and collaborating. We have some wonderful examples of this, and I am therefore pleased to announce the reinstatement of our National Tourism Awards which will take place in Spring 2025. I would like to take the opportunity created by Wales Tourism Week to thank people across the sector for their passion in showcasing Wales to the world.  First Minister Vaughan Gething has reshuffled his ministerial team amidst a period of significant turmoil within the Welsh Government. This comes just four months into his tenure and follows the resignation of three ministers and the chief legal adviser, which ultimately led to Mr. Gething announcing his resignation.
Announcement of the New Team In his statement on Wednesday evening (17.07.24), Mr. Gething announced changes to his ministerial team, emphasising the importance of continuity and stability during this period of transition. “I am this evening announcing changes to my ministerial team,” said Mr. Gething. “I have asked Jack Sargeant, Member of the Senedd for Alyn and Deeside, to join my team as the Minister for Social Partnership.” Jack Sargeant, in his new role as Minister for Social Partnership, will have a broad portfolio, including:
The WTA warmly welcomes him to this role. Other Key Appointments The reshuffle also saw the broadening of several ministerial portfolios. The new-look cabinet includes:
Welsh Labour announced that Wales will welcome a new First Minister by mid-September following Vaughan Gething's resignation. The leadership change is scheduled as follows:
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