The 2021 Economic Mission set out a pathway to recovery post-pandemic, to reconstruct the Welsh economy with the aim to improve the well-being of everyone in Wales. The economy has been subject to significant challenges in the 2 years since the Missions’ publication. The current Minister for Economy, Vaughan Gething MS aims to renew the Economic Mission for Wales to provide clarity about Welsh Government economic priorities and engage with businesses and Welsh society about the economic future we are striving for in Wales. Work is now underway to identify key areas or priorities for the economy, to make best use of the tools and levers available to work towards making Wales a better place to live, work and do business. The WTA Has responded on behalf of its member organisations. In brief, as the visitor economy is dependent on discretionary spend, it is particularly exposed to external economic pressures. Some of these are currently captured in the tail of covid and the “cost of living crisis” and the effect on supply and demand is particularly acute in this industry. This was confirmed again in the most recent Business Barometer and underlines why a Mission to minimise uncertainty would be most welcome. We have placed a full response to this consultation and it will be available shortly on the Wales Tourism Alliance website – www.wta.org.uk
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Questions are regularly being asked of the Welsh Labour Government on our industries behalf. These can either come prompted direct from constituents (i.e., you); WTA and its member organisations direct, or via the Tourism and Hospitality Cross Party Group chaired by Sam Rowland MS. The Self Catering industry is reeling from the new 182 threshold, so keeping this issue at the top of the agenda continues to be of great importance as it looks like to reaching 2022/23 is going to be difficult if not impossible for many self caterers. The problem is not so much that a self catering business may have to pay Council Tax if we miss 182, it is that the property is deemed a second home and then has to pay up to a 300% premium. This is why we need a balanced mix of exemptions. The support from opposition MSs is appreciated and much needed. The following are two recent examples of tabled questions: Jane Dodds MS - Tabled Question: What consideration has the Minister given to aligning Welsh regulations with respect to furnished holiday let businesses to HMRC’s 105 occupancy days, as opposed to 182 occupancy days? Answered by Minister Rebecca Evans MS, Finance and Local Government - 20/09/2023 The Welsh Government considered a range of options for the letting criteria used to classify self-catering properties for local tax purposes, including at least 105 days actually let. The 182 days letting criteria reflect the settled policy position reached following consideration of a range of relevant factors, including that for a self-catering property to be treated as non-domestic for local taxation purposes it should operate as a business for the majority of the year. The Welsh Government’s Regulatory Impact Assessment (RIA) was published alongside the legislation. The RIA includes the available evidence in relation to historic occupancy but it is not possible to predict how may properties will meet the criteria in future. The Welsh Government continues to monitor the effect of the legislation but has no plans to undertake a formal review of the changes to the self-catering criteria in the short-term nor in isolation from the broader package of measures within our three-pronged approach to tackling the impact of large numbers of second homes and holiday lets can have on communities and the Welsh language. Such a commitment could create uncertainty for the self-catering sector, which is unlikely to be helpful in diverting its focus from responding to the criteria in place now and for the foreseeable future. The Welsh Government does not intend to consider exemptions from the letting criteria, which apply equally to all self-catering properties across Wales. The letting thresholds apply nationally and consistently because they define a key aspect of the system: whether a property is treated as a domestic dwelling or a non-domestic holiday let for local tax purposes. There are no exemptions to this definition and this is not a new principle. The Welsh Government has recognised that some self-catering properties are restricted by planning conditions preventing permanent occupation as someone’s main residence. We have extended the existing exceptions to council tax premiums to include properties with a planning condition which specifies that the property may only be used for holiday let 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, but they could not be charged a premium. We have issued updated guidance to local authorities regarding the implementation of council tax premiums on second homes and long-term empty dwellings. Local authorities also have discretionary powers to reduce council tax bills for particular dwellings or classes of dwellings. This work is being carried out in collaboration with Siân Gwenllian MS, the Plaid Cymru designated lead member, as part of the Cooperation Agreement between the Welsh Government and Plaid Cymru. Marks Isherwood, MS – Question at Plenary – 27/09/2023 'Thank you. As a constituent e-mailed a fortnight ago regarding the 182-day threshold for holiday lets, 'Same old is being trotted out by the Welsh Government. None of their statements is being borne out by facts. Everyone has been dreamed up to prop up the rhetoric.' Regarding the socioeconomic impact, a survey commissioned by the Wales Tourism Alliance, UKHospitality and the Professional Association of Self-Caterers UK already shows that fewer than 25 per cent of Welsh self-caterers will hit the threshold in this year of soft demand, higher mortgages and a cost-of-living crisis, even though over 70 per cent have said that they are discounting to try and achieve it. How, therefore, do you respond to the legitimate holiday small business owner in Denbighshire, who e-mailed: 'We've taken the decision to cut our losses, salvage what's left of our mental health and close down', and to the legitimate self-catering small business owner in Flintshire, whose property is now on the market, who e-mailed: 'A number of major lenders have said that they would not provide mortgage support, which would seriously affect people's ability to sell their property'? These are two examples, sadly, among many that I am receiving. Mark Drakeford MS, First Minister’s response The Welsh Government's policy is there for a reason. It is there to distinguish properly between holiday lets that are organised on a commercial basis and those that fall below a commercial threshold. The number of days that a property has to be available for letting, and the number of days that it has to be let, are there to make that distinction. If you are a business, then it is reasonable that you let your property for the number of days that we now require in Wales. If you don't do so, that doesn't mean that you can't go on letting your property, it simply means that you don't benefit from the business rate reliefs that would otherwise be available to you; you simply pay the council tax like everybody else and you let your property for fewer days. There's nothing unfair about that. What it actually is fair to every other taxpayer. Home Office Guidance on Making your small paying guest accommodation safe from fire 2023
This paper covers small units, without open plan downstairs, not more than four bedrooms, sleeping no more than twelve in two storey buildings. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1147723/A_guide_to_making_your_small_paying-guest-accommodation_safe_from_fire.pdf Fire Safety Risk Assessment Sleeping Accommodation This paper goes some way to helping with larger properties, however it was published in 2006 and is currently being updated by the Home Office. Earliest date expected in early 2024. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/422192/9281_Sleeping_Accomodation_v2.pdf PASC UK (WAT Member) has very kindly produced the following short docs that summarize the current situation with Fire Regs in self-catering in England and Wales. They signpost you to all the regulations, the Government produces Guidance, the additional PASC UK papers and more. They can be found here: https://www.pascuk.co.uk/fire_checks_and_safety/ The Home Office has also published both People with duties under fire safety laws - GOV.UK (www.gov.uk) and Fire Safety Order: enforcement and sanctions for non-compliance - GOV.UK (www.gov.uk) The People with duties under fire safety laws - GOV.UK (www.gov.uk) is intended to assist ‘persons’ with duties under fire safety legislation in England to comply with the legislation. The Fire Safety Order: enforcement and sanctions for non-compliance - GOV.UK (www.gov.uk) explains how the Regulatory Reform (Fire Safety) Order 2005 (as amended) is enforced and advises of the sanctions that are available to Enforcing Authorities if you fail to comply with this legislation. To be held at the Metropole Hotel, Llandrindod Wells on Thursday 23rd November 2023. 9.45-3.30pm.
This year, MWT are diving deep into collaborative strategies, aiming to understand how businesses, communities, and organisations can unite as we venture into 2024 and beyond. With the global travel landscape buzzing with destinations, how does Wales, especially Mid Wales, plan to stand out? There will be insights from industry experts, engage with over 100 tourism professionals and suppliers, and connect face-to-face and forge meaningful relationships with industry frontrunners and organisations committed to driving success. Get all the details and secure your spot at www.midwalestourismconference.co.uk. This Bill is currently passing through the House of Commons - it has passed both first & second readings and is now in report stage. It is a complicated Bill and aims to provide for the regulation of competition in digital markets; to amend the Competition Act 1998 and the Enterprise Act 2002 and to make other provision about competition law; to make provision relating to the protection of consumer rights and to confer further such rights; and for connected purposes.
The Association of Leading Visitor Attractions (ALVA), together with a number of other tourism organisations including the National Trust and the RHS, have identified a significant issue of concern in the Digital Markets, Competition and Consumers Bill The Bill considerably enhances the information and rights that have to be provided to consumers, for example: •Key pre-contract information will need to be presented to the consumer prominently and clearly before the consumer places their order, and express acknowledgement from the consumer that the contract imposes an obligation to make payment must be obtained (e.g. checkbox). •Multiple notices would have to be issued including: reminder notices, cooling off notices, acknowledgement of cancellation notices etc. These notices need to be sent at prescribed times, in prescribed formats and contain the mandatory information set out within the Bill. •Cancellation: Provide a straightforward process to exit the contract via a single communication. The Bill will also extend consumers’ existing cancellation rights to all subscription contracts and introduce a new 14-day cancellation right after a free or reduced-price trial, and after auto-renewal if the renewal term is a year or more. •For consumers who sign up at a property or via phone, ‘scripts’ would need to be provided to SSC advisors/staff/volunteers to make sure they read out the requisite information. This is something we have long campaigned for with the English Tourism Alliance. Finally, this week the publication of a call for evidence on changes to the Package Travel Regulations have been released. The Package Travel Regulations are currently retained EU law. It sounds innocuous enough, but it is huge barrier to tourism business and related businesses to be able offer value-added products to their customers on what maybe deemed packages. Brexit made no difference to this (and indeed many other pieces of retained legislation). We have campaigned as a sector for a small, but very important change to the definition of what constitutes a package in the domestic sector this would make a big difference.
The English Tourism Alliance have published a policy White paper on their website. If you are seeking to set up a value-added product (deemed a ‘package’) we suggest you read it: https://tourismalliance.com/package-travel-regulations-policy-white-paper The UK Government are it seems starting to consider the suggested changes to the PTRs so that consumers remain adequately protected, but so that unnecessary red-tape can be removed and free up tourism businesses to provide more value to holidaymakers. The Business Minister, Kevin Hollinrake MP, recently said: “Our domestic travel industry is crucial to our economy, but many holiday companies are faced with often over-burdensome regulations that make it difficult for them to grow and thrive. “Today’s consultation is a major step to cutting red tape, which could benefit millions of British holidaymakers and give the sector a much-needed boost for the future.” We warmly welcome this call for evidence and will be submitting our views and evidence in support of the change we wish to see. In the meantime you can read the Government's press release here and the full call for evidence here. The Digital Markets, Competition and Consumers Bill is currently passing through the House of Commons - its first & second readings and is now in report stage. It is a Bill to provide for the regulation of competition in digital markets; to amend the Competition Act 1998 and the Enterprise Act 2002 and to make other provision about competition law; to make provision relating to the protection of consumer rights and to confer further such rights; and for connected purposes.
The Association of Leading Visitor Attractions (ALVA), together with a number of other tourism organisations including the National Trust and the RHS, have identified a significant issue of concern in the Digital Markets, Competition and Consumers Bill, currently passing through Parliament. The bill has some unintended consequences for organisations with individual members. Membership (of charities) might be considered to be a subscription under the provisions of the Bill. The Bill considerably enhances the information and rights that have to be provided to consumers, for example: •Key pre-contract information will need to be presented to the consumer prominently and clearly before the consumer places their order, and express acknowledgement from the consumer that the contract imposes an obligation to make payment must be obtained (e.g. checkbox). •Multiple notices would have to be issued including: reminder notices, cooling off notices, acknowledgement of cancellation notices etc. These notices need to be sent at prescribed times, in prescribed formats and contain the mandatory information set out within the Bill. •Cancellation: Provide a straightforward process to exit the contract via a single communication. The Bill will also extend consumers’ existing cancellation rights to all subscription contracts and introduce a new 14 day cancellation right after a free or reduced-price trial, and after auto-renewal if the renewal term is a year or more. •For consumers who sign up at a property or via phone, ‘scripts’ would need to be provided to SSC advisors/staff/volunteers to make sure they read out the requisite information. ALVA and other colleagues are working to seek an exemption for charities and donations in the bill. This will enable direct communication with the Home Office and will mean that we will be alerted as soon as there is a Policy update. This will also ensure we are part of stakeholder engagement groups when they develop new guidance. We can then report that to you here. For example some useful links below, the first is to their overall guidance page which starts with fire safety law and the second is from that fire safety law section which is a link to where you can ‘check your fire safety responsibilities under the FSO’.
Fire safety: guidance for those with legal duties - GOV.UK (www.gov.uk) Check your fire safety responsibilities under the Fire Safety Order - GOV.UK (www.gov.uk) Review 182 Campaign is now fully live (facilitated by PASC UK). The simple goal of this campaign is to persuade the Welsh Government to agree to review the 182 Threshold and allow further exemptions against the Council Tax Premiums. The Petition: We urgently need the Welsh Government to agree a review of the 182-day threshold and further exemptions to council tax premiums. After clicking on the link below all you need to do is enter your postcode, your MS will come up, you enter your address and then You are able to modify the letter should you wish and then press send. https://pascuk.eaction.online/182Wales A United Kingdom Electronic Travel Authorisation (UK ETA) is a British entry permit document that will soon be available online. It will allow travellers from eligible nations to visit Great Britain for a number of different purposes without acquiring a visa. An ETA will cost £10 per applicant.
Information and guidance about the scheme can be found on Electronic Travel Authorisation (ETA) - GOV.UK (www.gov.uk) and a communications toolkit is available to assist with stakeholder engagement and preparing visitors. |