Plans to Double Council Tax on Second Homes in Bath

A recent proposal by the Bath and North East Somerset Council aims to double council tax for second homes, potentially netting an additional £1.5 million in revenue. The move, subject to council approval, is part of various measures intended to address housing challenges and fund essential services.

The proposal, influenced by the Levelling-Up and Regeneration Act 2023, would impact 858 second homes in the area, generating an estimated £1.84 million in additional council tax. After allocations to emergency services and parish councils, this would result in around £1.48 million of extra income for the council.

This initiative is driven by concerns about the negative impact of an increased number of second homes on housing availability and the displacement of local residents from the market. The council hopes that the potential tax hike will either encourage second home owners to sell their properties, thus increasing local housing stock, or contribute more significantly to council funds.

In addition to addressing the second home issue, the council is also considering imposing higher taxes on “long-term empty” homes and adjusting council tax support to enhance fairness. With a projected budget gap of £35 million over the next five years, the council is faced with the need to implement challenging efficiencies to ensure financial stability.

Council leader Kevin Guy has warned about the possibility of bankruptcy if funding challenges, particularly in adult and children’s services, are not addressed by the government. The proposed measures, including changes to the tax treatment of long-term empty properties and council tax support, seek to mitigate financial strain and promote equity in tax assessments.

The decision on these proposals will be made at a council meeting on November 30, 2023. The potential impact of these changes on council tax, housing, and local funding underscores the significance of this forthcoming decision.