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Agenda item

Council Tax Discounts 2019/20

To consider a range of Council Tax discounts for 2019/20 and make a recommendation to Council.  

Subject To Call In::No - Recommendation to Council

Decision:

That it be RECOMMENDED TO COUNCIL that the following discounts be effective from 1 April 2019:

·           the Council Tax discount for unoccupied furnished properties (second homes) is zero;

·           the discount for unoccupied and substantially unfurnished properties is 100% for a period of one month then 25% for the following five months;

·           the discount for dwellings which are vacant and undergoing major repair work to render them habitable will be 25% for a maximum period of 12 months; and

·           an empty homes premium of an additional 100% is levied on properties that have remained unoccupied and substantially unfurnished for more than two years.

Minutes:

73.1           The report of the Head of Corporate Services, circulated at Pages No. 37-40, provided Members with an update on proposed Council Tax discounts effective from 1 April 2019 and sought approval for their recommendation to Council. 

73.2           Members were advised that local Council Tax discounts should be reviewed on an annual basis to ensure they continued to meet the requirements of legislation; there were also financial implications as they impacted directly on the Council’s income from Council Tax. The current proposal was to leave the discounts at their existing level for 2019/20 but with the intention to review them early in 2019/20, alongside the Council Tax Reduction Scheme, and bring forward proposals on all. In respect of empty homes, there were currently 43 properties within the Borough that had been unoccupied and unfurnished for over two years and those were currently subject to a 50% long-term empty homes premium. The government had introduced the Rating (Property in Common Occupation) and Council Tax Empty Dwellings Act 2018 on 1 November 2018 which allowed billing authorities, from 1 April 2019, to apply a premium of up to an additional 100% of the Council Tax due where a dwelling had been empty for at least two years; from 1 April 2020, to apply a premium of up to an additional 200% of the Council Tax due where the dwelling had been empty for five years and over; and, from 1 April 2021, to apply a premium of an additional 300%  where the dwelling had been empty for 10 years and over. As the current long-term empty properties premium had only been in place since 1 April 2018, it was recommended that the same level of premium continue for 2019/20 and that the amount levied in the future be reviewed as part of the general review of discounts prior to the 2020/21 budget-setting process.

73.3           A Member expressed the view that the empty property surcharge should be amended in line with the amount allowed by the government. Other Members agreed with that view considering that, not only would it be revenue to the Council, but would also encourage empty properties back into use. Alternative views expressed indicated that any amendments to the scheme should be made via the Transform Working Group following thorough consideration. Another Member questioned whether there also needed to be consideration given to implementing a premium for second homes. In response, the Revenues and Benefits Manager explained that, to be a second home, the house had to be furnished and the new rules only provided the ability to charge the premium for unfurnished properties. During the discussion which ensued, it was understood that there were different reasons for properties remaining empty and unfurnished some of which were outside of the owner’s control; however, there was a housing shortage which could be partially addressed by bringing empty properties back into use. There was some concern expressed that research needed to be undertaken to understand the reasons for the properties being empty; whether it was likely they would be brought back into use; and to give owners an appropriate amount of notice about the Council Tax increase. In terms of the number of empty properties that were awaiting the finalisation of probate, the Revenues and Benefits Manager indicated that she could advise Members of that information following the meeting.

73.4           It was proposed and seconded that an empty homes premium of an additional 100% be levied on properties that remained unoccupied and substantially unfurnished for more than two years. Upon being put to the vote the amendment was carried and, accordingly, it was

Action By:DCE

Supporting documents: