Sam Rowlands, Member of the Welsh Parliament for North Wales, fears the 182-day threshold for holiday lets will force many self-catering businesses to close.
Mr Rowlands, Shadow Minister for Local Government and Chair of the Senedd’s Cross-Party Group on Tourism said he was extremely concerned for the future of this type of accommodation across Wales.
In Welsh Parliament he recently called for an update on Non-Domestic Rating (Amendment of Definition of Domestic Property) (Wales) Order 2022, and particularly the impact of that Order, which defines a self-catering business as one that must be let for 182 nights a year, instead of the previous 70 days.
He said:
I raised significant concerns with this order, when it made its way through the Welsh Parliament and I am troubled now to hear of specific issues, which show restrictions on self-catering businesses during the COVID lockdown periods are now effectively classed as 'cancellations', even though those businesses had no choice at the time.
This is pushing a number of genuine businesses to be classified as second homes and liable to significant additional costs, even though they had no choice over those restrictions that were placed upon them during that COVID lockdown period.
He called for a much-needed update on the impact of this order since it came into force nearly two years ago.
He added:
I have had many emails from concerned business owners in North Wales who are extremely worried for their futures as the 182 day rule is just not sustainable. Several have already considered taking their cases to a tribunal as they have been wrongly charged significant Council Tax premiums due to their closures during the pandemic.
One of my constituents, who lets out two holiday cottages, has told me that he recently attended a tribunal hearing as a witness and was amazed to hear that the tribunal panel regarded "booking cancellations" and "mandated closure due to lockdown legislation" as exactly the same thing.
The UK Government provided compensation in the form of business grants for mandated closure due to lockdown legislation, the Welsh Government clearly did not.
You really couldn’t make it up. I understand that The Professional Association of Self Caterers UK (PASC UK) are also starting to investigate the issue and may raise a legal challenge.
Sam Rowlands AS yn bryderus am ddyfodol busnesau hunanddarpar yng Nghymru
Mae Sam Rowlands, Aelod o Senedd Cymru dros Ogledd Cymru, yn ofni y bydd y trothwy o 182 diwrnod ar gyfer llety gwyliau yn gorfodi llawer o fusnesau hunanddarpar i gau.
Dywedodd Mr Rowlands, Gweinidog Llywodraeth Leol yr Wrthblaid a Chadeirydd Grŵp Trawsbleidiol y Senedd ar Dwristiaeth ei fod yn bryderus iawn am ddyfodol y math hwn o lety ledled Cymru.
Yn Senedd Cymru, galwodd yn ddiweddar am ddiweddariad ar Orchymyn Ardrethu Annomestig (Diwygio’r Diffiniad o Eiddo Domestig) 2022, ac yn arbennig, effaith y Gorchymyn hwnnw, sy’n diffinio busnes hunanddarpar fel un y mae’n rhaid ei osod am 182 noson y flwyddyn, yn lle’r 70 diwrnod blaenorol.
Meddai:
Mynegais bryderon sylweddol am y gorchymyn hwn, pan oedd yn mynd trwy Senedd Cymru a nawr rwy’n pryderu wrth glywed am broblemau penodol, sy’n dangos bod cyfyngiadau ar fusnesau hunanddarpar yn ystod y cyfnodau clo COVID bellach yn cael eu disgrifio fel ‘cansladau’, er nad oedd gan y busnesau hynny ddewis ar y pryd.
Mae hyn yn gwthio nifer o fusnesau dilys i gael eu dosbarthu fel ail gartrefi ac yn atebol i dalu costau ychwanegol sylweddol, er nad oedd ganddynt ddewis ynghylch y cyfyngiadau a osodwyd arnynt yn ystod cyfnodau clo COVID.
Galwodd am ddiweddariad mawr ei angen ar effaith y gorchymyn hwn ers iddo ddod i rym bron i ddwy flynedd yn ôl.
Ychwanegodd:
Rwyf wedi derbyn llawer o e-byst gan berchnogion busnes pryderus yn y Gogledd sy’n pryderu’n fawr am eu dyfodol am nad yw’r rheol 182 diwrnod yn gynaliadwy. Mae sawl un eisoes wedi ystyried mynd â’u hachosion i dribiwnlys gan eu bod wedi derbyn biliau sylweddol am bremiymau’r Dreth Gyngor am eu bod wedi cau yn ystod y pandemig.
Mae un o’m hetholwyr, sy’n gosod dau fwthyn gwyliau, wedi dweud wrthyf ei fod wedi bod yn dyst mewn gwrandawiad tribiwnlys yn ddiweddar a’i fod yn rhyfeddu bod y panel yn ystyried bod “archebion wedi’u canslo” a “cau gorfodol yn sgil deddfwriaeth cyfnod clo” yn union yr un fath â’i gilydd.
Darparodd Llywodraeth y DU iawndal ar ffurf grantiau busnes am orfod cau yn sgil deddfwriaeth cyfnod clo, ond ni wnaeth Llywodraeth Cymru hynny.
Mae’r sefyllfa’n gwbl hurt. Rwy’n deall bod Cymdeithas Broffesiynol Hunanddarparwyr y DU (PASC UK) yn dechrau ymchwilio i’r mater hefyd ac y gallai gyflwyno her gyfreithiol
