The Office of the Deputy Prime Minister (ODPM) has stated that the government has no plans to increase council tax on second homes in any form.
There is an increasing demand for housing in rural and urban areas thanks to a growing and ageing population which is putting pressure on affordability.
That is why we have set out measures as a response to the Barker review to address these issues. We have also set up the Affordable Rural Housing Commission to look at some of the specific challenges that face rural areas in addressing the demand for housing.
The Affordable Rural Housing Commission is looking at a range of issues including affordable housing and sustainability. ODPM is not currently considering any specific proposals from the CRC and awaits the Affordable Rural Housing Commission's report later this year.
Additionally, Sir Michael Lyons is leading an independent inquiry into the funding of local government, looking at the whole council tax system including discounts.
Sir Michael Lyons will produce a final report at the end of 2006, and Ministers will consider his findings.
