Scottish islanders battling second home tax force council to reconsider: Could more follow suit?
A Scottish Island may be about to force a u-turn over the decision to impose double council tax on second homeowners.
Residents of Great Cumbrae, a small island off the west coast of Scotland, have been left outraged by the tax, according to reports in the Telegraph.
North Ayrshire Council is now reviewing its decision to impose a 100 per cent council tax premium on second homeowners amid the backlash.
Residents argue the tax will hurt the local economy due to its heavy reliance on tourism.
Roughly one third of all properties on the island are second homes, while one quarter of its 1,400 residents work in tourist related jobs.
Cameron Inglis, the Conservative leader on North Ayrshire Council, told the Telegraph that the reaction from residents had been 'fiery.'
Residents on the island of Great Cumbrae argue that the second home tax will hurt the local economy due to its heavy reliance on tourism Pictured: Millport, Great Cumbrae Island
'We are asking second home owners to pay double, get nothing in return, so that we can balance our budget gap,' said Inglis.
'The whole thing has been pushed through so that supposedly rich people can plug a budget gap. The whole thing is a sham. It's smoke and mirrors.'
Meanwhile, Alex Harvie, chairman of the Cumbrae Community Council said the double council tax would reduce income across the island and potentially 'start a spiral of decline' as facilities fall into disrepair.
An impact assessment found the council tax hike would strip £500,000 off the island's £12.9million annual GDP.
It remains to be seen as to whether this will be the first of many challenges faced by councils over the 100 per cent council tax premium.
The majority of Scottish councils have now doubled council tax on second homes and three quarters of local authorities in England and Wales have also done so.
Second homes for council tax purposes are defined as furnished properties where nobody lives, or where the owner has their main residence elsewhere.
It means many second home owners in England paying the typical Band D council tax of £2,171 are seeing their annual bills rise to £4,342.
Holiday hotspots such as Cornwall, Norfolk and Somerset are among those introducing the tax, in a bid to make homes more affordable for local people.
For those who own second homes that are in a more expensive bracket, the costs could be astronomical.
For example, someone who owns a Band H home in Salcombe - a second home hotspot in Devon - will see their council tax double from £4,716.42 to £9,432.84.
Have you been hit by the second home council tax hike? Get in touch: editor@thisismoney.co.uk
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