CCC calls for a review of the Island Communities Impact Assessment.
Cumbrae Community Council (CCC) has officially challenged North Ayrshire Council (NAC) regarding the introduction of a new council tax policy imposing a 100% premium on second homes. This decision, which was made before the end of the stipulated review period, is raising significant concerns about its disproportionate impact on the small island community.
In an Island Communities Impact Assessment (ICIA) dated January 18, 2025, NAC acknowledged that the new policy would disproportionately affect Cumbrae, where 30% of North Ayrshire’s second homes are located, despite the island's population being just 1,262. In contrast, 37% of second homes are on the mainland, which boasts a population of 133,413. This vast disparity suggests the impact per capita on Cumbrae will be 74 times greater than on the mainland.
The estimated council tax premium on Cumbrae is projected to be £500,589, a staggering proportion of the island's total economic output of just £12.9 million (compared to an economic output for the whole of North Ayrshire of approximately £2.4 billion). This represents a significant strain on a community that has a heavily reliance on tourism and the contributions of the second home owners.
The impact assessment highlights that 76% of the second homes on Cumbrae are classified as council tax band A and B properties, many of which are smaller, older homes often not suitable for full-time occupation by working families. This compares to just 37% on the mainland. The ICIA states: “There is a risk, which is probably more acute in Cumbrae, that this change could potentially lead to more housing supply for lower banded properties being available on the market and that this is not matched by an equivalent level of demand for such properties.”
Despite recognising the potential impact of the policy on the island, NAC failed to adopt measures to improve and mitigate its outcome for Cumbrae, as required by the National Islands Act. The only mitigation suggested involves allocating 10% of the additional revenue to affordable housing across North Ayrshire, with no specific provisions for Cumbrae. The ICIA suggests monitoring the policy's effects post-implementation, but with no strategies for improvement.
“Our community is extremely concerned that the impacts of this policy disproportionately impact Cumbrae and that North Ayrshire Council did not allow time for us to call for a legal review before it was rushed through. This is a cynical cash grab by North Ayrshire Council that will lead to vacant properties on our island that nobody wants. It will directly reduce vital income into our local economy” stated Graham Wallace, advisor to Cumbrae Community Council. “The type of properties that will be forced onto the market are not the ones permanent residents want. They are small flats in old buildings which are expensive to heat in the winter. We are calling for a comprehensive study of second homes on Cumbrae to assess their condition and to work out how they can be retrofitted to make them suitable for permanent occupation by working families. A programme of works will then be required to upgrade those properties that need it. This should have happened before the policy was introduced, not after.”
