§ Mr. Edward DaveyTo ask the Deputy Prime Minister if he will estimate the total revenue which would be raised by local authorities from charging(a) 100 per cent. council tax rate and (b) 100 per cent. business rate on second homes. [132449]
§ Mr. RaynsfordApproximately £160 million per year would be raised by English local authorities if 100 per cent. council tax were charged and collected on all second homes. This represents an additional £80 million because there is currently a 50 per cent. discount on council tax for second homes. However, because owners of second homes would have no reason to provide this information if discounts were to be546W entirely ended, the yield in future years would be increasingly difficult to estimate. This would, of course, affect the scope for individual local authorities to benefit directly from the reduction of discounts on second homes.
In addition, some second homes let as self-catering holiday homes are subject to business rates because it is intended that they are let as holiday accommodation for more than 140 days in a year. Business rates are usually charged at 100% for such properties, although figures the revenue raised from them are not available.
The Office of the Deputy Prime Minister does not have sufficiently detailed records to be able to calculate what would he raised if all second homes were subject to non-domestic rates rather than council tax.