MP makes fresh calls for Government to close loophole after fears second home owners taking millions from coronavirus business fund

South Lakes MP Tim Farron has written to the Chancellor Rishi Sunak, urging him to close a tax loophole which is allowing second home owners to claim millions of pounds from the fund meant for struggling small businesses.

The loophole allows second homes owners to get away with paying no council tax whatsoever by pretending to be a holiday let.

As a result, second homes are now able to take advantage of the £10,000 grant that the Government is giving to all small businesses.

It's estimated that there are 1,500 second home owners currently exploiting this loophole in South Lakeland, resulting in second owners taking £15m in small business grants.

Tim has been pushing for the Government to close this loophole, but over a year after the Government held a consultation on the idea they are still yet to make a decision.

Tim said: "Excessive second home ownership has turned communities across the South Lakes into ghost towns.

"We've been campaigning for this loophole to be closed for a long time.

"Now we're faced with this double whammy of second home owners not only being allowed to avoid paying council tax, but also claiming money which should be going to our small businesses who are struggling to survive.

"It's a massive kick in the teeth to all those businesses that are falling through the cracks with no support from Government, that millions of pounds are being dished out to people who are wealthy enough to own another home.

"The Chancellor should close this loophole today."