NOT “vanity projects” but ways of “counteracting the impact of second homes on communities” – that’s what funds raised by extra council tax on some home owners will be spent on.

A scheme charging second home owners across Pembrokeshire an extra 50% on their council tax has raised nearly £1million and this is to be distributed to community projects around the county.

At a scrutiny committee last week councillors examined three options put forward as ways of distributing the money, which will involve communities applying for grant funding.

The preferred option of the council tax working group would see 25% of money raised allocated to a county wide grant and 75% allocated as far as possible within the generating community area, based upon the percentage of second homes.

“Whatever way we implement it, it’s going to be good news,” said cabinet member for finance Cllr Bob Kilmister.

Some areas in Pembrokeshire are effected “very badly” by second homes the meeting was told last Friday.

However, Cllr Joshua Beynon said the distribution model would amount to approximately £22.90 per head in Tenby, Saundersfoot and the Havens and just £1.52 per head in his ward of Pembroke Dock, Milford Haven and Haverfordwest.

He said option three would “drive further inequality” and could lead to “vanity projects”.

It was pointed out that urban areas already received support from other schemes and organisations, as well as having many more council provided services than the more rural areas.

He favoured option two.

This would see 25% allocated to a county wide grant and 75% allocated based upon a grouping of six areas aligning geographical areas broadly with numbers of second homes.

Cllr Michelle Bateman added: “This money is not about deprivation, it’s about counteracting the effects of having homes in the area.”

Some areas may look healthy but are “struggling to function as communities,” she added.

Members of the extraordinary policy and pre-decision overview and scrutiny committee agreed to recommended to cabinet approval of option three with the addition of an amendment, made by Cllr Rhys Sinnett, that collaborative projects would be encouraged wherever possible to maximise impact.

Outcomes will be brought back for scrutiny after six months.

Council’s cabinet will discuss the scheme at its March meeting with an aim of starting it in April.