Issue - meetings

At its meeting on 16 November 2022 the Committee considered the Council Tax Reduction Scheme and Council Tax Discounts 2023/24 and RECOMMENDED TO COUNCIL:

1.      That the default Council Tax Reduction Scheme be ADOPTED effective from 1 April 2023 with a minor revision to the national working age regulations to allow for a de minimus tolerance for income changes.

2.      That authority be delegated to the Head of Corporate Services, 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 2023:

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

·      The discount for properties that are unoccupied and require major structural repair work to render them habitable is 25% for the maximum period of 12 calendar 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 remain 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 remain 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 remain unoccupied and substantially unfurnished for at least ten years.

50.7           At its meeting on 16 November 2022, the Executive Committee had considered the Council Tax Reduction Scheme and Council Tax Discounts 2023/24 and recommended that the default Council Tax Reduction Scheme be adopted effective from 1 April 2023 with a minor revision to the national working age regulations to allow for a de minimus tolerance for income changes; that authority be delegated to the Head of Corporate Services, 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; and that the following Council Tax discounts be adopted effective from 1 April 2023: the discount for unoccupied and substantially unfurnished properties is 25% for the maximum period of six calendar months; the discount for properties that are unoccupied and require major structural repair work to render them habitable is 25% for the maximum period of 12 calendar months; the discount for unoccupied furnished properties (second homes) is zero; an empty properties 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 properties 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 properties premium of an additional 300% is levied on properties that have remained unoccupied and substantially unfurnished for at least ten years.

50.8           The report which was considered by the Executive Committee had been circulated with the Agenda for the current meeting at Pages No. 38-42.

50.9           The Chair of the Executive Committee proposed the recommendation of the Executive Committee and it was seconded by the Vice-Chair.

50.10         A Member questioned how second homes were monitored and was advised that Officers visited properties to review and monitor them; it was up to the owner to report a home as a second home but either way they paid 100% Council Tax. Accordingly, it was

                  RESOLVED          1. That the default Council Tax Reduction Scheme be                                            ADOPTED effective from 1 April 2023 with a minor revision                                    to the national working age regulations to allow for a de                                                   minimus tolerance for income changes.

                                                2. That authority be delegated to the Head of Corporate                                         Services, 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 2023:

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

·      The discount for properties that are unoccupied and require major structural repair work to render them habitable is 25% for the maximum period of 12 calendar months.

·      The discount  ...  view the full minutes text for item 50

To recommend a Council Tax Reduction Scheme and Council Tax Discounts to Council for approval.  

That it be RECOMMENDED TO COUNCIL:

1.      That the default Council Tax Reduction Scheme be ADOPTED effective from 1 April 2023 with a minor revision to the national working age regulations to allow for a de minimus tolerance for income changes.

2.      That authority be delegated to the Head of Corporate Services, 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 2023:

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

·         The discount for properties that are unoccupied and require major structural repair work to render them habitable is 25% for the maximum period of 12 calendar 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 remain 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 remain 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 remain unoccupied and substantially unfurnished for at least ten years.

65.1           The report of the Revenues and Benefits Manager, circulated at Pages No. 107-111, indicated that the Local Government Finance Act 1992 required each billing authority in England to make a scheme specifying the reductions which were to apply to amounts of Council Tax payable by persons, or classes of person whom the authority considered were in financial need, as well as providing an update on the annual review of Council Tax discounts. Members were asked to agree that the current Council Tax Reduction Scheme and Council Tax discounts in place for 2022/23 remain unchanged for 2023/24.

65.2           Members were introduced to the new Revenues and Benefits Manager who had recently taken up her post. She explained that the Council had remained on the national default scheme since Council Tax Reduction was first introduced from 1 April 2013 and, following public consultation on three options for a revised scheme, it was agreed the Council would remain on the default scheme for working age claimants for 2020/21 with a minor revision of a tolerance for income changes. That decision had been made due to the impact of the rules regarding reassessment of Universal Credit and its impact on Council Tax reduction. At that time, it was agreed that alternative options would again 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. Due to the current, and likely ongoing, impact of the COVID-19 pandemic the advice of Officers was to remain on the default scheme for working age claimants for the 2023/24 financial year.

65.3           During the brief discussion which ensued, a Member questioned whether the 12-month discount for unoccupied homes which needed major repair work was realistic. She was concerned a period of 12-months would not be long enough to undertake major renovations. In response, the Revenues and Benefits Manager advised that, prior to 2019 it had not been possible to change this and it had always been 12-months. She was of the view that a year should be sufficient and, if the property was uninhabitable, the customer could apply to the Valuation Office to have it removed from the rating list so it was not billed at all.

65.4           Accordingly, it was