THE TAX loophole on second homes must be closed without delay.

That is the view of MP Tim Farron who said not only was the situation encouraging the tide of second home ownership which is causing serious economic problems in South Lakeland but was also costing the Government millions in lost tax.

And the Westmorland and Lonsdale MP said he had now secured a meeting with Housing Minister Esther McVey at which he intended to state the urgency of the issue in no uncertain terms.

The current situation allows some second homeowners to avoid paying any council tax whatsoever by claiming that as they rent out their second home, it can be classed as a small business.

In the House of Commons this week, Mr Farron said: “Is the Government going to take action to protect communities in the South Lakes and elsewhere or have they decided not to bother?”

In response, Mr Farron said Ms McVey incorrectly stated that a Government consultation on the issue closed later this week when it had in fact ended in January 2019.

He said that after the error was pointed out, the minister agreed to meet Mr Farron in person to discuss the issue in full.

“It beggars belief that the Government appear to have completely forgotten about their own consultation on this crucial issue, 12 months after it ended," said the MP.

“It just shows how low a priority the future of so many of our rural communities is for the Conservative Government.

“I look forward to sitting down with the minister to make the case to get this loophole closed so we can start to reverse the tide of excessive second home ownership in so many of our local towns and villages.”

Mr Farron's meeting with Ms McVey is scheduled to take place in the first week in February.

And it is understood that the Government department in question has acknowledged their mistake with regard to the consultation period and was now examining the issue as a matter of urgency.