Agenda item

13.1

The Executive Director, Resources, submitted a report referring to the

Government’s intention to provide, with effect from 1^st April, 2013, local authorities with greater discretion on the level of Council Tax reliefs and discount they could offer as a means of generating more income. The report, specifically, contained proposals for the Council, from April, 2013, to remove the 10% discount on second homes, replace the exemption from Council Tax on empty homes in need of repair with a 25% discount  for 12 months, replace the exemption from Council Tax on empty unfurnished with a 10% discount for 6 months and, in respect of properties that have been empty for 2 years, increase Council Tax liability by 50%.

13.2

RESOLVED: That Cabinet:-

(a)

notes the proposals relating to Council Tax discounts and the Empty Homes Premium, detailed in this report and set out in Appendix 1 to the report; and

(b)

recommends to Council that it approve the proposals, to take effect from 1st April 2013.

13.3

Reasons for Decision

13.3.1

Adopting the proposed changes to Council Tax discounts for second homes and empty properties will potentially generate income in the region of £2m per year.

13.3.2

The reduction of discounts on second homes and empty properties and the implementation of an empty homes premium may encourage property owners to bring properties back into use providing associated environmental benefits.

13.4

Alternatives Considered and Rejected

13.4.1

A number of options are available to the Council including doing nothing. Doing nothing is not recommended as it is clear that making changes to the discounts on second homes and empty properties offers a valuable source of income to the Council which will make a significant contribution to its budget planning.

13.4.2

Awarding no discount at all for all empty unfurnished homes and properties in need of repair is an option, however, it is considered that this option poses operational risks that will adversely impact the service and its ability to collect the additional revenue particularly by a potential increase in queries, complaints and appeals as well as an increase in avoidance tactics and potential fraudulent claims.

13.4.3

The proposals made in this report are expected to deliver a fair offer for the taxpayer, a realistic level of revenue for the Council and not to add a burden on the administration process through problems associated with tax avoidance and non payment.

13.5

Any Interest Declared or Dispensation Granted

None

13.6

Reason for Exemption if Public/Press Excluded During Consideration

None

13.7

Respective Director Responsible for Implementation

Laraine Manley, Executive Director, Resources.

13.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Overview and Scrutiny Management.

(NOTE: Councillors Isobel Bowler and Mazher Iqbal declared an interest in the above item on the grounds that they were in receipt of a discount for a second home and left the meeting during the consideration of the item.)

13.1

The Executive Director, Resources, submitted a report referring to the

Government’s intention to provide, with effect from 1^st April, 2013, local authorities with greater discretion on the level of Council Tax reliefs and discount they could offer as a means of generating more income. The report, specifically, contained proposals for the Council, from April, 2013, to remove the 10% discount on second homes, replace the exemption from Council Tax on empty homes in need of repair with a 25% discount  for 12 months, replace the exemption from Council Tax on empty unfurnished with a 10% discount for 6 months and, in respect of properties that have been empty for 2 years, increase Council Tax liability by 50%.

13.2

RESOLVED: That Cabinet:-

(a)

notes the proposals relating to Council Tax discounts and the Empty Homes Premium, detailed in this report and set out in Appendix 1 to the report; and

(b)

recommends to Council that it approve the proposals, to take effect from 1st April 2013.

13.3

Reasons for Decision

13.3.1

Adopting the proposed changes to Council Tax discounts for second homes and empty properties will potentially generate income in the region of £2m per year.

13.3.2

The reduction of discounts on second homes and empty properties and the implementation of an empty homes premium may encourage property owners to bring properties back into use providing associated environmental benefits.

13.4

Alternatives Considered and Rejected

13.4.1

A number of options are available to the Council including doing nothing. Doing nothing is not recommended as it is clear that making changes to the discounts on second homes and empty properties offers a valuable source of income to the Council which will make a significant contribution to its budget planning.

13.4.2

Awarding no discount at all for all empty unfurnished homes and properties in need of repair is an option, however, it is considered that this option poses operational risks that will adversely impact the service and its ability to collect the additional revenue particularly by a potential increase in queries, complaints and appeals as well as an increase in avoidance tactics and potential fraudulent claims.

13.4.3

The proposals made in this report are expected to deliver a fair offer for the taxpayer, a realistic level of revenue for the Council and not to add a burden on the administration process through problems associated with tax avoidance and non payment.

13.5

Any Interest Declared or Dispensation Granted

None

13.6

Reason for Exemption if Public/Press Excluded During Consideration

None

13.7

Respective Director Responsible for Implementation

Laraine Manley, Executive Director, Resources.

13.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Overview and Scrutiny Management.

(NOTE: Councillors Isobel Bowler and Mazher Iqbal declared an interest in the above item on the grounds that they were in receipt of a discount for a second home and left the meeting during the consideration of the item.)