Agenda item

Report of the Director of Customer and Digital attached.

Decision made:

1.    That Cabinet recommends Council to approve the proposed policy changes for the removal of the 10% discount applied for Council Tax Second Homes.

2.    That Cabinet recommends Council to approve the proposed policy changes to increase the Council Tax Long Term Empty Premium charge from 1 April 2020 as shown:

3.    That Cabinet recommends Council to approve the new Council Tax Local Empty Discounts and Exemptions Policy to reflect the changes above.

The Cabinet Member for Community Engagement, Social Justice and Wealth Building presented a report of the Director of Customer and Digital that informed Members on the proposed changes to the Council Tax Second Home discount and the proposed changes to the Council Tax Long Term Empty Premium charge.

The report also outlined the proposals and sought approval for the removal of the Council Tax Second Home discount and increase the Council Tax Long Term Empty Premium charge as detailed in the report with effect from 1 April 2020 and sought approval for the new Council Tax Local Empty Discounts and Exemptions Policy appended to the report.

Councillor Bylinski Gelder also informed Members that following the Council Tax Support Scheme consultation that had recently been undertaken, 73% of people supported these recommendations.

In response to a question from Councillor Damian Bretherton, the Cabinet Member provided assurances that the Council would allow a period of six months for the full refurbishment of a home as long as the landlords engaged in the process. Councillor Bylinski Gelder also commented that this was not about punishing people in hardship situations and that people in extenuating circumstances would be considered by their own merits.

Decision made:

1.    That Cabinet recommends Council to approve the proposed policy changes for the removal of the 10% discount applied for Council Tax Second Homes.

2.    That Cabinet recommends Council to approve the proposed policy changes to increase the Council Tax Long Term Empty Premium charge from 1 April 2020 as shown:

3.    That Cabinet recommends Council to approve the new Council Tax Local Empty Discounts and Exemptions Policy to reflect the changes above.

Reason(s) for the decision:

1.     The Council implemented an Empty Home Policy in 2013. These changes are intended to complement and enhance this policy in returning long term empty properties back into use.

2.     To make best use of the housing in the area by minimising the length of time it remains empty.

3.     To raise additional Council Tax income that can be used to maintain services and help keep the overall level of Council Tax at an affordable level for all residents.

4.     The proposed changes will maximise incentive for owners of long term empty homes to bring their properties back into use and support work already undertaken by the Council to reduce the number of long term properties and make better use of existing housing in the borough.

5.     It was approved at Cabinet in July that due to the proposed changes to the Council Tax Support Scheme (CTSS) for 2020/21, the Council would explore other income opportunities associated with the Council Tax second homes and empty homes premium charges.

Alternative Options Considered and Rejected:

An alternative option would be to leave the current Council Tax discount on for second homes and the premium at 50% on for homes that have been empty and unfurnished for more than two years. This option would mean that the Council would not be using all available measures to incentivise long term empty property owners to bring their properties back into use or maximise any potential additional income.