Ministers have been urged to end tax relief on second homes to help councils.
Scarborough Council said ministers should close the loophole in business rates that allows relief to be claimed if a property is registered as a business. The council said it had 2,000 properties within its boundaries that were affected.
The council has calculated the cost is £2.56m a year in lost taxes. If it was collected, Scarborough estimates it would retain £330,000.
