NFU Cymru has called on Welsh Government to find a solution to the serious impact that the 182-day threshold for self-catering accommodation is having on diversified farm businesses.
Members across Wales have repeatedly expressed frustration that, while they have been encouraged by government to diversify, the increase from 70 to 182 bookable days has pushed many farm based self-catering units into unaffordable council tax liabilities when they fall short of the new threshold. For many diversified businesses, the shift implemented in April 2023 has turned what was intended as a supplementary and stabilising income stream into a source of financial stress.
The union shared its members’ concerns in its response to Welsh Government’s consultation on proposed changes to the classification of self-catering properties for local tax purposes. While the consultation proposes an ‘averaging rule’ to account for variations in booking patterns, NFU Cymru believes this change does not go far enough for genuine Welsh self-catering businesses that cannot realistically reach 182 days. Tourism patterns, weather, farming workload and school holiday changes all influence booking levels in a way that is largely outside farmers’ control.
NFU Cymru Rural Affairs Board Chairman Hedd Pugh said:
“Members have diversified often in good faith with Welsh Government support, yet around 40% of self-catering businesses are now failing to meet the 182-day rule. This indicates that the target is simply too high and is stifling confidence, investment and job creation in rural communities. NFU Cymru is calling for a more realistic figure based on robust data.
“Concerns were raised prior to implementation of the 182-day threshold, and these concerns have now materialised. Members report stress and uncertainty at a time when they are already under pressure due to changes in inheritance tax.
“The wider impacts on rural Wales must also be recognised. A shortage of visitors reduces spending in pubs, shops and local services, while ongoing running costs for rural businesses continue to rise. The reduction in summer holiday weeks will only compound booking challenges for many operators who rely on seasonal demand.
“NFU Cymru is urging Welsh Government to adopt a clear, data-driven solution that reflects the realities of genuine self-catering businesses in rural Wales. We believe a more flexible approach – supported by accurate local data and recognition of external factors – will help protect vital diversified income streams that support farming families and rural economies.
“NFU Cymru will continue to represent the concerns of members and push for workable policies that sustain both diversification and the long-term resilience of Welsh farming.”
