A council has been forced to reconsider its controversial second homes tax policy following fierce opposition from residents on a picturesque island
The SNP-led North Ayrshire Council imposed a 100 per cent council tax premium on second home owners on the island of Great Cumbrae sparking significant backlash among the 1,400 residents.
The council is now reviewing the impact of the policy after locals warned it would damage their tourism-dependent economy.
Great Cumbrae, situated just a 10-minute ferry ride from the Scottish mainland, has 450 second homes - representing one in three properties on the island.
Millport seafront as seen from the harbour wall, Great Cumbrae Island,
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Around a quarter of residents work in tourism-related jobs, making the sector vital to the local economy. An impact assessment found the council tax raid would strip £500,000 from the island's annual GDP of £12.9million.
Cameron Inglis, the Conservative leader on North Ayrshire Council, described the reaction from residents as "fiery".
"We are asking second home owners to pay double, get nothing in return, so that we can balance our budget gap," he told The Telegraph.
"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."
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View from the south east side of Millport Bay, towards Millport, Isle of Cumbrae
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Inglis further criticised the council's plan to ringfence 10 per cent of the additional revenue for affordable housing. He said this would amount to approximately £110,000, which would only fund about 20 houses a year across the entire county.
"That's not 20 houses for the island. That's 20 houses across the whole county. It's a drop in the water when it comes to the number of houses we need."
Alex Harvie, chairman of the Cumbrae Community Council, warned the premium would force second home owners to sell up. This would reduce income for the island and could "start a spiral of decline as facilities fall into disrepair".
He accused the authority of rushing through the policy before the completion of a three-month review period to allow it to respond to the initial impact assessment.
The seafront in Millport on Great Cumbrae Island, Ayrshire, Scotland
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The council's initial consultation revealed widespread opposition to the policy, with 59% against the premium and only 38 per cent in favour.
Around 60 per cent of respondents were not second home owners, suggesting broad community concern beyond those directly affected.
The council's own impact assessment raised concerns about the economic impact on Great Cumbrae and questioned whether it would benefit housing availability.
North Ayrshire Council has now been forced to review its original impact assessment following pressure from the community council.
A public consultation has been opened with the council accepting representations from residents, visitors and businesses until May 20.
A council spokesman said they hope to see "real long-term benefits to the availability of housing" and "for homes to be occupied for longer periods of time throughout the year".
