Tax on second homes

Argyll and Bute Council is in favour of the Scottish Government’s proposal to allow councils the discretion to increase council tax on second homes should they wish.

The Scottish Government is currently running a consultation on council tax for second and empty homes, and non-domestic rates thresholds.

At a meeting of the full council on June 29, members agreed to respond to the consultation in support of increasing council tax on these properties by up to 100 per cent.

“There are currently around 3,000 second homes in Argyll and Bute,” a council spokesperson said. “This is 6.2 per cent of the overall council tax register – higher than any other local authority in Scotland and much higher than the national average of 0.9 per cent.”

The council’s policy lead for financial services and major projects, Conservative councillor Gary Mulvaney, said: “Giving local authorities the power to increase council tax on second homes could help to ease the pressure on the local housing market and generate additional income for local services. It could help with economic fairness and longterm rental opportunities, whilst assisting more people in getting on the property ladder,” added Mr Mulvaney, the council’s depute leader.

“Increasing council tax on these properties in Argyll and Bute could result in an additional income of £4 million – money that could be used to help fund essential services, infrastructure development, and community projects.

“There are, however, some disadvantages, such as the impact it will have on property owners and the local tourism economy, and these would need careful consideration.”