Issue - meetings

At its meeting on 26 August 2020 the Executive Committee considered the Council Tax Reduction Scheme and Council Tax Discounts for 2021/22 and RECOMMENDED TO COUNCIL:

1.   That the default Council Tax Reduction Scheme be ADOPTED effective from 1 April 2021 with a minor revision to the national working age regulations to allow for a de minimis tolerance for income changes.

2.   That authority be delegated to the Head of Finance and Asset Management, in consultation with the Lead Member for Finance and Asset Management, to agree the uprating of the working age regulations incorporated into the local Council Tax Reduction Scheme in line with those announced by the Department for Work and Pensions.

3.   That the following Council Tax discounts be ADOPTED effective from 1 April 2021:

·          The discount for unoccupied and substantially unfurnished properties is 25% for a maximum period of six months.

·          The discount for properties which are vacant and require major repair work to render them habitable is 25% for a maximum period of 12 months.

·          The discount for unoccupied furnished properties (second homes) is zero.

·          An empty homes premium of an additional 100% is levied on properties that have remained unoccupied and substantially unfurnished for at least two years, but less than five years.

·          An empty homes premium of an additional 200% is levied on properties that have remained unoccupied and substantially unfurnished for at least five years, but less than ten years.

·          An empty homes premium of an additional 300% is levied on properties that have remained unoccupied and substantially unfurnished for at least ten years.

27.1          At its meeting on 26 August 2020, the Executive Committee had considered the Council Tax Reduction Scheme and Council Tax Discounts 2021/22 and recommended to Council that the default Council Tax Reduction Scheme be adopted effective from 1 April 2021 with a minor revision to the national working age regulations to allow for a de minimis tolerance for income changes; that authority be delegated to the Head of Finance and Asset Management, in consultation with the Lead Member for Finance and Asset Management, to agree the uprating of the working age regulations incorporated into the local Council Tax Reduction Scheme in line with those announced by the Department for Work and Pensions; that the following Council Tax discounts be adopted effective from 1 April 2021: the discount for unoccupied and substantially unfurnished properties is 25% for a maximum period of six months; the discount for properties which are vacant and require major repair work to render them habitable is 25% for a maximum period of 12 months; the discount for unoccupied furnished properties (second homes) is zero; an empty homes premium of an additional 100% is levied on properties that have remained unoccupied and substantially unfurnished for at least two years, but less than five years; an empty homes premium of an additional 200% is levied on properties that have remained unoccupied and substantially unfurnished for at least five years, but less than ten years; and an empty homes premium of an additional 300% is levied on properties that have remained unoccupied and substantially unfurnished for at least ten years.

27.2          The report which was considered by the Executive Committee had been circulated with the Agenda for the current meeting at Pages No. 15-20.

27.3          The Vice-Chair of the Executive Committee, who had chaired the meeting on 26 August 2020, proposed the recommendation and the Lead Member for Finance and Asset Management seconded it.

27.4          A brief discussion ensued, in which a Member questioned how ‘substantially unfurnished’ was defined. In response, the Revenues and Benefits Manager indicated that this was a property that was essentially devoid of furniture which someone would need to live there, e.g. no bed, however, if it had white goods it could still be deemed to be substantially unfurnished.

27.5          Accordingly, it was

RESOLVED    1.    That the default Council Tax Reduction Scheme be       ADOPTED effective from 1 April 2021 with a minor revision to the national working age regulations to allow for a de minimis tolerance for income changes.

2.       That authority be delegated to the Head of Finance and Asset Management, in consultation with the Lead Member for Finance and Asset Management, to agree the uprating of the working age regulations incorporated into the local Council Tax Reduction Scheme in line with those announced by the Department for Work and Pensions.

3.       That the following Council Tax discounts be ADOPTED effective from 1 April 2021:

·      The discount for unoccupied and substantially unfurnished properties is 25% for a maximum period of six months.

·      The discount  ...  view the full minutes text for item 27

To consider and make a recommendation to Council. 

That it be RECOMMENDED TO COUNCIL:

1.   That the default Council Tax Reduction Scheme be ADOPTED effective from 1 April 2021 with a minor revision to the national working age regulations to allow for a de minimis tolerance for income changes.

2.   That authority be delegated to the Head of Finance and Asset Management, in consultation with the Lead Member for Finance and Asset Management, to agree the uprating of the working age regulations incorporated into the local Council Tax Reduction Scheme in line with those announced by the Department for Work and Pensions.

3.   That the following Council Tax discounts be ADOPTED effective from 1 April 2021:

·          The discount for unoccupied and substantially unfurnished properties is 25% for a maximum period of six months.

·          The discount for properties which are vacant and require major repair work to render them habitable is 25% for a maximum period of 12 months.

·          The discount for unoccupied furnished properties (second homes) is zero.

·          An empty homes premium of an additional 100% is levied on properties that have remained unoccupied and substantially unfurnished for at least two years, but less than five years.

·          An empty homes premium of an additional 200% is levied on properties that have remained unoccupied and substantially unfurnished for at least five years, but less than ten years.

·          An empty homes premium of an additional 300% is levied on properties that have remained unoccupied and substantially unfurnished for at least ten years.

34.1          The report of the Head of Corporate Services, circulated at Pages No. 80-85, provided the Committee with information on the Council Tax Reduction Scheme and an update on the annual review of Council Tax discounts. Members were asked to consider the information provided and make a recommendation to Council as to the Council Tax Reduction Scheme to be adopted and the Council Tax discounts to be applied from 1 April 2021.

34.2          Members were advised that there was a requirement to have a Council Tax Reduction Scheme to support residents who qualified for assistance in paying Council Tax. The Scheme had to specify the reductions which were to apply to amounts of Council Tax payable by persons, or classes, or a person, whom the authority considered were in financial need. In January 2020, Council approved a Council Tax Reduction Scheme for the 2020/21 financial year which meant it remained on the national default scheme, as it had since 2013, but with a minor revision of a tolerance for income changes. It was also agreed that alternative options would be reviewed to ensure any future scheme provided the right level of support for residents as well as its impact on the Council’s wider financial position. However, due to the current, and likely ongoing, impact of the COVID-19 pandemic, it was recommended that the Council remain on the default scheme for working age claimants for the 2021/22 financial year.

34.3          In respect of Council Tax discounts, Members were advised that the Local Government Finance Act 2012 had abolished certain discounts with effect from 1 April 2013 and replaced them with discounts which could be determined locally. Those had remained broadly the same since 2013/14 other than a change to the level of discount given to short term empty properties and the levying of an empty homes’ premium from 1 April 2019. From April 2020, an additional power had been granted to allow the increase of the levy charge to 200% for properties which had been unoccupied and unfurnished for a period of over five years; Council had adopted that option for the 2020/21 financial year and the premium was currently levied on 22 properties which resulted in an additional income of £61,000 with the Council retaining approximately £4,500. From April 2021, a further power would be granted to increase the empty homes premium to 300% for properties that had been unoccupied and substantially unfurnished for more than 10 years. There were six properties that met the criteria and the levying of the additional charge resulted in further income of £10,000 - the Council’s share of that was minimal but, more widely, it supported the Council’s strategy to bring empty properties back into use which was a key driver for the Council.

34.4          Accordingly, it was