A COUNCILLOR has warned demand for second homes in the Lake District could rise under new Government tax break proposals.

Coun Stan Collins asked South Lakeland District Council to write to the Government to express "alarm and repugnance" at plans he said would encourage people to buy second homes.

He said the scheme, due to come into force in April 2005, proposed tax rule changes that would allow people to use second homes as part of their pension fund and set that home's value against their income tax.

This would exacerbate the shortage of affordable housing for local people in South Lakeland, said Coun Collins.

During the debate, it was revealed Coun Collins first became aware of the proposals while watching the BBC television programme Working Lunch.

Coun Simon Butterfield said: "We shouldn't be responding to something off the BBC. This is ridiculous."

Coun Barclay Stainton said the council should not accept tax advice from a television programme.

It was suggested that the council should be directly consulted by Government as one of the three or four councils nationwide which would be most affected by more second home owners.

The council deferred making any decision until all members had seen the full consultation document on the proposals.