What assessment it has made of any potential economic and social impacts of varying council tax premiums on second homes, including in rura…

The Scottish Government published impact assessments as part of its 2023 consultation on Council Tax for second homes and long-term empty homes and non-domestic rates thresholds for self-catering accommodation, including an Island Communities Impact Assessment screening summary.The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2026 provide local authorities with flexibility to determine the Council Tax treatment of second homes and long-term empty homes in their area.Local authorities are independent bodies, democratically elected and accountable to their local electorate. Responsibility for developing and implementing a local policy on Council Tax charges for second and long-term empty homes therefore rests with the relevant local authority. It is for each Council to determine its policy and to consider the local impacts of the choices it makes, including what consultation or assessment is appropriate when developing and implementing that policy.As such, local authorities are relevant authorities under the Islands (Scotland) Act 2018 and it is for each authority to consider whether local decisions require an Island Communities Impact Assessment or any other assessment of impacts on local communities.The Scottish Government has published guidance to support Councils in exercising their discretion which is available online at Local government finance circular 6/2026: council tax on second and long-term empty homes guidance
- gov.scot. This sets out the relevant legislative framework and provides guidance to local authorities on applying their discretion to reduce or increase Council Tax liability for second and long-term empty homes. It also notes that local authorities may use Housing Need and Demand Assessments and Local Housing Strategies to inform the development of Council Tax charging policies.The guidance encourages local authorities to consider local housing need, the local economy and tourism, public services, community impacts, hardship and the circumstances of individual owners when deciding whether and at what level to apply a premium.As decisions on whether to apply a premium, and at what level, are matters for individual local authorities, it is for those authorities to consider local evidence and undertake any assessments they consider necessary to inform their decisions. The Scottish Government does not supervise individual local authorities’ exercise of these powers and it would not be appropriate for the Scottish Government to intervene in a Council’s local policy decision.