Wales stuck to its guns
{Wales stuck to its guns – This is a really serious part of what we are about at Earth and Leaf. This action across the Yorkshire Dales National Park would make communities much more sustainable. A great proposal. Lets hope that Wales stuck to its guns continues to be the case. – Earth and Leaf Editorial}
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Wales stuck to its guns
The Welsh region of Dwyfor has been the site of an unusual experiment in recent months. The area has a high number of second homes, which is pricing young families out of renting and forcing locals hoping to buy out of their hometowns.
In 2022, the Welsh Government gave councils the power to charge a second home council tax premium. Dwyfor was chosen for the pilot scheme and the policy is already bearing fruit: more homes available to buy, and more money available to fund projects such as social housing.
Vicky Spratt thinks there are lessons for Rachel Reeves from this experiment:
“The Chancellor could learn a lot from the nerve of the Welsh Government, who stuck to their guns amid heavy criticism.
“Taxing landlords to raise public funds was an option that Reeves had been rumoured to be seriously considering. She and her team had been looking at increasing the rate of capital gains tax (CGT) levied on the sale of second homes and buy-to-let properties.
“More’s the pity that it is now being reported that the Chancellor has abandoned the idea because of concerns that it could slow the housing market down. Particularly when the evidence from Wales suggests that taxing second homeowners and landlords could help boost first-time buyer purchases and social housing.”
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