Labour-run council has ‘no excuse' for tax raid on its 33 second home owners
A Labour-run council introduced the second homes premium despite it affecting little more than 30 owners in its borough, The Telegraph can reveal.
Figures show there were just 33 second homes on Rochdale's database when it agreed to hit owners with double council tax bills under new measures intended to ease housing shortages.
They now face an annual average charge of £4,060, compared with £1,874 last year, according to Telegraph analysis.
Local authorities in England were given the power to charge a 100pc council tax premium from April 1 under laws passed by the previous Conservative government.
Unearthed government guidance shows that councils were told to only introduce the premium where 'appropriate' and 'take into account local circumstances'.
Second homes accounted for just 0.04pc of Rochdale's housing stock, yet the council opted to bring in the surcharge as soon as it could.
John O'Connell, chief executive of the TaxPayers' Alliance, said: 'These extortionate premiums were supposedly brought in to ensure that areas with high levels of second home ownership contributed to the local area.
'Even though that policy is wildly misguided, there is no excuse for councils to introduce it in areas with as little as just 33 second homes.'
He added: 'It will be of little surprise to taxpayers that politicians have spied an opportunity for a cash grab, and seized it with both hands.'
Back in 2023 when the topic of introducing the premium was raised, Rochdale council said there were 33 second homes in the borough. Implementing the surcharge was expected to raise £60,000 in additional income.
The council told The Telegraph the number of second homes has since increased to 245 due to the opening of a new town centre development. The figure equates to 0.2pc of the borough's housing stock.
The local authority is grappling with a housing shortage, but it has not been caused by the borough's small share of second home owners.
There are 1,729 homes run by social housing associations which are standing empty, according to the latest government figures. Of these, around half are in such levels of disrepair that they are unable to be let out.
The borough's high number of vacant homes comes as the council contends with a bulging housing waiting list of 9,000 people – one of the largest in the country.
Councillor Carol Wardle, Rochdale's cabinet member for finance, said: 'In November 2023 when this premium was approved, it was in addition to the removal of discounts on empty properties and on top of other measures aimed at persuading owners to bring properties back into use rather than leaving them empty.
'Our approach is in line with the majority of other authorities in Greater Manchester and with services still under significant financial pressure we will put the premium to good use for the benefit of the local community.'
Last year, the Ministry for Housing, Communities and Local Government said it was 'clear that it expects local councils to take into account local circumstances when determining where it is appropriate for a premium to apply'.
Other councils with minimal second homes include Watford, which according to government data has just 38 second homes. It has agreed to implement the premium from April 2026.
The findings come after The Telegraph launched a campaign to abolish the levy, which has been supported by several politicians.
Dozens of readers have been in touch to complain of exorbitant bills being issued on inherited family homes or properties that are used every week for work.
Telegraph analysis revealed local authorities are spending as little as 9p in every £1 generated from the raid on affordable housing, while other councils are sitting on hundreds of empty properties of their own.
A Ministry for Housing, Communities and Local Government spokesman said: 'We are determined to fix the housing crisis we have inherited, but we recognise local leaders are best placed to understand the impacts that second homes can have on their areas, including driving up housing costs and damaging local services.
'That is why local councils are now able to add up to 100pc extra on the council tax bills of second homes, and it is for them to decide whether to implement this.'
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