Second homes tax could be spent on highways

About £15m of extra revenue from doubling council tax on second homes in Devon could be spent on roads, according to a leaked letter seen by the BBC.

District councils are responsible for collecting council tax but it is Devon County Council that decides where the majority of the money will go.

The leader of a district council that is introducing 200% council tax for second homes from April 2025 said he and other leaders were told most of the extra money would be spent on highways.

The leader of the county council told the BBC no final decisions had been made ahead of the budget being set in February.

Council tax will be doubled in areas covered by South Hams District Council, North Devon Council and East Devon Council from April 2025.

Julian Brazil, Liberal Democrat leader of South Hams District Council, said: "The tax was brought in because of the problem we have around housing that second homes create.

"So it only seems fair that the money we raise is spent on housing."

Brazil said it was "incredibly disappointing" the county council had indicated the extra cash would be spent on roads.

"We've got a massive opportunity here and we can make a real difference - we know what we need in our communities and that's genuinely affordable housing," he said.

Brazil also pointed to a report carried out by the Devon Housing Commission which recommended "that Devon County Council utilise a significant proportion of receipts from second homes council tax to help meet the county's housing and infrastructure needs".

Emma Hookway set up the campaign group North Devon and Torridge Housing Crisis to raise awareness of housing issues in the area.

"When the revenue is being made off the back of saying we're in the midst of a housing crisis and we're going to target second home owners it seems absolutely wrong to then put that money into another pocket," she said.

Ms Hookway said she would like to see the money used to improve standards in temporary accommodation.

The leaders of all eight district councils in Devon signed a joint letter to the county council leader, James McInnes, in August which said the extra council tax revenue arose "specifically from the fact that local people are being denied the opportunity to own or rent that home".

The letter said: "We trust you will look at the challenges being experienced by local people facing housing issues and allocate these resources accordingly."

In the written response from McInnes, he said the question of where to spend extra council tax cash would be "just one element of a complex juggling act".

He said the council's current priority was "tackling the problems with our highway and transport networks".

Speaking to the BBC, McInnes said: "I don't think all the money will go into highways.

"Some district council leaders are saying we're going to solve the housing crisis in Devon by doubling second homes council tax.

"You're not going to do that - it's far bigger than that. We need to work together with the district councils and with Homes England to put together a plan that's likely to get money way beyond second homes council tax coming into Devon to really solve the housing crisis in the long term."

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