Tourism operators in north Powys to benefit from council tax changes

Owners of self-catering holiday accommodation across Powys, including businesses serving visitor destinations around Newtown, Welshpool and the Severn Valley, will have backdated council tax premium charges removed after the county council approved a £1 million support package.

Powys County Council has agreed to introduce a discretionary council tax discount for eligible self-catering properties that were moved from Business Rates to Council Tax following changes to Welsh Government rules in April 2023.

The decision means affected businesses will no longer have to pay the additional 75 per cent council tax premium for the backdated period from 1 April 2023. They will still be required to pay the standard council tax due.

The move is expected to benefit around 250 properties across Powys that were transferred onto the Council Tax list after tougher national eligibility rules meant they no longer qualified for Business Rates. Some owners had faced substantial backdated tax bills.

Tourism is one of the biggest contributors to the economy in north Powys, supporting accommodation providers, restaurants, pubs, shops, attractions and outdoor activity businesses across the Newtown and Welshpool area. 

The region attracts visitors throughout the year, with destinations including the Severn Valley, Montgomery Canal, Hafren Forest, Lake Vyrnwy and the Cambrian Mountains helping to sustain hundreds of local jobs.

By removing the backdated premium, the council hopes to ease financial pressures on holiday accommodation providers, helping businesses remain viable and continue attracting visitors whose spending supports the wider local economy.

The estimated £1 million cost of the scheme will be met from an existing £1.2 million provision that had already been set aside by the council to cover the potential non collection of income from the affected properties.

Councillor David Thomas, Cabinet Member for Finance and Corporate Transformation, said: “This decision provides fair and practical support for self catering business owners who have been affected by changes to national regulations. While property owners will remain responsible for paying the standard Council Tax due, the removal of the backdated premium charge will help ease financial pressure and give businesses greater certainty as they adapt to the new arrangements.

“Supporting local businesses and maintaining a thriving tourism economy is an important part of building a Stronger, Fairer and Greener Powys for our communities and future generations.”

Property owners do not need to apply for the discount. Powys County Council says it has already identified the eligible properties and will automatically issue revised council tax bills in the coming weeks.