Second home owners may face full tax bill

There was a widespread welcome throughout the Yorkshire and Durham dales for consultation on plans to allow local councils to end the 50pc council tax discounts for second home owners. The money could be used to provide affordable housing in high priced scenic areas.

The discount for homes not occupied throughout the year is considered a subsidy for second home ownership in areas where the number of second homes distorts the local property market, squeezing out young people looking for low-cost homes.

Mr Harry Tabiner, chief executive of Richmondshire District Council, said it had asked the government to include the measure in the White Paper entitled A Fair Deal for Rural England.

"Quite a lot of things this council has done or asked for are included," he said. "We feel quite vindicated over what we have been doing.

"There are a lot of second homes here and we estimate we would make about £60,000 a year out of charging full rates. We have an enabling scheme with housing associations on exception sites to ensure homes are affordable and stay so and can be lived in by local people.

"We recently completed a housing needs assessment in Wensleydale and we will be doing the same in Swaledale," he added.

He said the council was already developing a strong relationship with its parish councils and six forums are now used by the police, county councils and health authorities.

It has been asking for fairer funding for rural communities and has helped farmers with diversification schemes.

Mr Charles Anderson, chief executive of Teesdale District Council said: "I don't want to pre-judge the council's view, but it would probably make sense to charge the full council tax rate for second houses.

"Quite a number are not occupied all the year round in Teesdale, so they are not making a very strong contribution to the local economy.

"We are concerned that so much council housing stock has been sold under the right to buy scheme.

"It is very difficult for young people to gain a foothold in the market in their own native villages and it means they often have to move out into other settlements.

The authority has already established its own rural transport partnership including Durham County Council and organisations in the voluntary sector.

"Instead of voluntary mini- buses not turning a wheel all night, they are also available for evening activities and our own vehicle is included in that."

He added: "If anything in the paper means the disadvantage quite often associated with rural areas is counter balanced, it would be welcome, But we have to look at the fine print, obviously."

Mr Steve Macar, chairman of the Yorkshire Dales National Park Authority, said the paper set out many good intentions, but action on the ground needed to start now if it was to bring lasting benefits.

On the proposal to charge full council tax for second homes, he said: "This could well bring genuine relief to the local people who have had to compete in a housing market that, for many, is beyond their means."

"By supporting local services, farm diversification and affordable housing we hope the government's proposals will help stem the loss of people from the land, the very people that maintain the National Park's environment and make the communities so special.

"The future of the national park is as a living and working landscape and not a dormitory for the urban workforce. In implementing their proposals we hope the government recognises this."

The Countryside Agency's Yorkshire and Humber region said explaining to rural people what level of service they could expect was a reasonable aim and well overdue in some cases.

"For many people without a car, access to services is a real and daily problem," a spokesman said.

"Action to co-ordinate these services and make them easier to understand, and get to, will make a big difference to many of the less well off in isolated areas."

The agency spokesman admitted no one had all the answers to the problems of rural transport but said there was now a real opportunity to make further improvements for the benefit of isolated communities.

Mr Graham Hall, chairman of the regional development agency Yorkshire Forward, said rural economies were properly reflected in the mainstream regional economic development agenda for the first time.

"We have some positive and bold messages for rural Yorkshire."

The development agency wants more and higher quality jobs in the countryside and to ensure agriculture is recognised as an integrated rural economy - not a separate activity.

The scheme was launched in the North East by the Minister for Tourism, Film and Broadcasting, Janet Anderson, who visited the Artists Studios in Saltburn.

She said the £152m rural enterprise scheme would help farmers diversify, provide new grants for energy crops and offer additional funds for woodland grants.

"We are also making it easier for farmers to develop new businesses by reducing unnecessary legislation and planning restrictions. There will be targeted help for specialist abattoirs."

Coun David Walsh, leader of Redcar and Cleveland Borough Council, said: "The new rural programme for action will mean more backing and resources so that rural communities can regain their self-confidence and self-esteem, and to allow for a rural renaissance in cultural creativity, employment, education and training."

Wolsingham sub-postmistress Mrs Jean Kendall, is a member of her national association's executive and negotiating committee.

She pointed out that the £270m earmarked in the White Paper for rural post offices was not new money.

"It had already been mentioned by Gordon Brown. But there is nothing for the rural sub-postmaster or their premises..

"It will go to the Post Office to set up a universal bank and trials for GP services."

She went on: "The Labour Party doesn't understand how rural areas operate. They haven't had to stand in the rain for an hour waiting for a bus because you have just missed one; the difficulty people have getting around or the economy of the small shopkeeper."

She agreed many small businesses would benefit from a proposed 50pc cut in rates - subject to consultation.

"Some people only make a profit of about £20 a week and are also stuck with high rates. But it would have been more beneficial if they were rate free.

"Many people are just providing a service to their village and if they wanted to make millions they would not be here.

"Whether they have a post office or not, they still have to get up at the crack of dawn every day of the week to make a living."

l Leading article: page 20.