Issue - meetings

Purpose: to recommend to Council the level of council tax discount to be applied to second homes, unoccupied and unfurnished dwellings, and dwellings undergoing or requiring structural repair, and to recommend to Council the level of premium to be applied to long-term empty dwellings (report attached). 

Cabinet considered the head of finance’s report on council tax exemptions and discounts.  Tabled at the meeting were amended recommendations following new council tax regulations, which were laid before Parliament on 30 November.  Cabinet was asked to recommend Council on the level of discount to be applied to second homes, unoccupied and unfurnished dwellings, and dwellings undergoing or requiring structural repair. 

The Local Government Finance Act 2012 set out options for councils to consider:

·        reduce the current statutory minimum discount of ten per cent for second homes to nil

·        award a discount of between zero and 100 per cent to unoccupied and unfurnished dwellings.  The period of the discount can also be between zero and six months

·        award a discount of between zero and 100 per cent to dwellings undergoing or requiring structural repair.  There are no changes to the maximum duration which remains at 12 months

·        apply a premium to long-term empty dwellings of up to an additional 50 per cent of the council tax due, where that dwelling has been empty for at least two years.

Cabinet considered that owners of long-term empty properties should be encouraged to bring such properties back into use and the scheme should reflect that.  The scheme should also discourage second home ownership to contribute to the council’s objective of meeting housing need.  This would also offset the reduction in funding the council would receive under the new local council tax reduction scheme.  Cabinet supported the officers’ recommendations. 

RECOMMENDED: To Council:

(a)               That in accordance with the Local Government Finance Act 1992 (as amended by the Local Government Finance Act 2012) and the Council Tax (Prescribed Classes of Dwellings) (England) Regulations 2003 (as amended)

(i)                 from 1 April 2013 the council tax discount to be applied on second homes (Classes A and B in the Regulations) be reduced from ten per cent to nil;

(ii)               from 1 April 2013 (subject to (iii) below) the council tax discount to be applied on unoccupied and unfurnished dwellings (Class C in the Regulations) be 25 per cent for up to six months and zero per cent thereafter;

(iii)             from 1 April 2013 where the unoccupied and unfurnished dwelling is requiring or undergoing structural repair (Class D in the Regulations) the discount to be applied be 50 per cent for up to 12 months and zero per cent thereafter;

(iv)              from 1 April 2013 a premium of 50 per cent (on top of the 100 per cent currently payable) be applied to long term empty dwellings where they have been unoccupied and unfurnished continuously for at least two years (except those falling within Classes E and F in the Regulations where no premium will apply).