Issue - meetings

Report by Director of Resources (attached).

Councillor Prowse re-declared his Non Registerable Interest and left the room during the consideration of this item.

The Committee considered a report by the Director of Resources (circulated previously) regarding Council Tax Discounts and Premiums.

The Director of Resources highlighted the following:

·       This report regarding Council tax discounts and premiums was presented on an annual basis.

·       Page 26 set out the current levels of discounts and premiums.

·       The changes were provided by the Levelling Up and Regeneration Bill (Bill 169 2022-23), which was currently making its way through the legislation process.

·       The changes within the Bill essentially fell into two distinct parts namely:

(a)  To bring forward the period from two years to one year when an unoccupied and substantially unfurnished dwelling (empty dwelling) could be charged a premium of 100%. All other empty dwelling premiums remain unchanged, namely:

Ø   A premium of 200% where a dwelling has remained empty for a period of 5 years or more;

Ø  A premium of 300% where a dwelling has remained empty for a period of 10 years or more; and

(b)  To enable the charging of a 100% premium for any dwellings which were:

Ø  No one’s sole or main residence; and

Ø  Substantially furnished.

·       Premiums were also introduced by Government in 2013 with a view to encouraging homeowners to occupy homes and not leave them vacant in the long term. Initially premiums could only be charged at 50% but legislation has now changed to allow a progressive charge to be made as follows:

Ø  Dwellings left unoccupied and substantially unfurnished for 2 years or more, up to 100%;

Ø  Dwellings left unoccupied and substantially unfurnished for 5 years or more, up to 200%; and

Ø  Dwellings left unoccupied and substantially unfurnished for 10 years or more, up to 300%.

·       Government, together with local authorities, had unfortunately seen a rise of in the number empty dwellings together with a growth in second homes. Inconsistencies in the legislation had also been identified whereby a premium could be avoided by the taxpayer merely furnishing an empty premises, when it would become a ‘second home’ which currently had a maximum charge of 100%.

·       Clauses within the Levelling Up and Regeneration Bill (Bill 169 2022-23) have been introduced in order to address the inconsistencies and also to bring more dwellings into use.

·       Changes to empty dwelling premiums:

Ø  Clause 72 (1) (b) of the Bill will permit billing authorities in England to impose an empty dwellings premium after one year instead of two. This gave effect to a commitment made by Government in the Levelling Up White Paper.

Ø  Clause 72 (1) (a) provides that billing authorities must have regard to any guidance issued by the Secretary of State when deciding whether to implement an empty dwellings premium and it is expected that the current guidance drafted by Government in 2013 will be updated. This change will come into effect from the 2024/25 financial year.

Ø  In addition, Clause 72 (2) of the Bill provides that  ...  view the full minutes text for item 94