Hansard

I rise to speak against the motion on the draft Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2023.

When the First Minister announced the policy in April, he stated that it would improve the availability of sustainable long-term housing opportunities. In the Local Government, Housing and Planning Committee’s deliberations, we have heard very little evidence to suggest that the policy will provide any additional homes or that it will encourage people who have second homes in Scotland to change how they use their properties.

There are also significant concerns about the policy in relation to potential behavioural change. The committee heard that there has been a decline in second home ownership and that there are, in Scotland, existing taxes on second homes, including the additional dwelling supplement, which is added to land and buildings transaction tax.

Witnesses to the committee also explained that they believe that the regulations could have unintended consequences. In particular, second home owners might instead increase the availability of their properties for holiday letting in order to become eligible for non-domestic rates, instead of paying council tax. The small business bonus provides relief from NDR of up to 100 per cent, which means that, in practice, many holiday-let owners currently pay no council tax or NDR.

We are all acutely aware of the pressures that local government in Scotland faces after a decade of SNP and Green ministers targeting them with budget cuts. Many councils will see the potential of a new revenue stream to fill that black hole, assuming that we see no behavioural change taking place. However, the policy presents no expectations on how councils should use that additional income—for example, in applying it to providing more affordable housing and addressing the housing crisis in Scotland.

Therefore, at decision time, the Scottish Conservatives will not support the motion.