Tax discount for second homes to be scrapped

Owners of second homes in England will lose their automatic right to a 50 per cent council tax discount under plans that could raise an extra £65m for local services, the Government said yesterday.

Nick Raynsford, the Local Government minister, said legislation would give councils the power to cut the discount for the 180,000 second homes. A discount of at least 10 per cent will still be available in an effort to ensure second-home owners continue to register their properties.

Boroughs will be allowed to retain the 50 per cent discount if they wish, a choice that is likely to be taken up by many Tory councils opposed to any cut in the perk. The proposals will disappoint many Labour MPs who called for outright abolition of the discount in all areas. Councils will only be able to end discounts where properties are left empty for long periods, probably for more than a year.

The Office of the Deputy Prime Minister said the move could bring in an extra £65m for housing, transport or policing. The change is to be introduced in this session of parliament.