An SNP-led council could be forced into a U-turn on its second home tax raid after residents complained it would harm the local economy, reports say. North Ayrshire Council is said to be reviewing the impact of the policy on Great Cumbrae following what is being described as a revolt from residents.

The small island one mile off Scotland’s west coast has a tourism-dependent economy and the authority placed a 100% council tax premium on second home owners last month, The Telegraph reports. The move has prompted a “fiery” reaction from residents, according to the Conservative leader on North Ayrshire Council. Cameron Inglis told the newspaper: “We are asking second home owners to pay double, get nothing in return, so that we can balance our budget gap.

“The whole thing has been pushed through so that supposedly rich people can plug a budget gap. The whole thing is a sham. It’s smoke and mirrors.”

One in three properties on Great Cumbrae are reportedly a second home, while around a quarter of residents work in tourism-related jobs.

An impact assessment found the second home tax would take off £500,000 from the island’s yearly GDP of £12.9 million.

North Ayrshire Council says the premium will benefit housing availability but doubt has been cast over this.

Alex Harvie, chair of the Cumbrae Community Council, has accused the authority of rushing through the policy.

He told The Telegraph the tax would force second home owners to sell their properties, reduce the island’s income and could “start a spiral of decline” with facilities falling into disrepair.

A consultation found widespread opposition to the policy – 38% were in favour, while 59% were against.

North Ayrshire Council is now said to be reviewing its original impact assessment after pressure by the community council, with a public consultation now open.

A spokesman for North Ayrshire Council told The Telegraph: “Like other councils across Scotland who have already adopted this measure, we hope to see real long-term benefits to the availability of housing for people in communities across North Ayrshire, and for homes to be occupied for longer periods of time throughout the year.”