Councillors Lane and Prowse left the room.

The Committee considered a report by the Head of Customer Focus (circulated previously) regarding Council Tax Discounts and Premiums.

The Head of Customer Focus highlighted the following:

·         Members agreed changes to Council Tax Discounts and Premiums in February 2023 subject to the Levelling Up and Regeneration Bill, which introduced these changes, receiving Royal Assent.

·         The Bill received Royal Assent on 26 October 2023.

·         The Council now needed to re-confirm its decision to introduce these changes to Premiums and Discounts.

·         Legislation required that 12 months’ notice be given for 100% premium on properties which were unoccupied but substantially furnished.

·         If approved this premium would come into effect from 1 April 2025.

·         The estimated additional income this would generate for North Devon Council would be around £420,000. 

The Director of Resources and Deputy Chief Executive explained the following:

·         The estimated additional revenue in total from the premium was around £4.2million and North Devon Council’s share was around 10% so was estimated at £420,000.

·         The proposed changes to the levying of the empty homes and second homes premiums would generate additional income to be shared between the Council, the major precepting authorities and the local precepting authorities in line with their share of Council Tax.

·         This additional income would be built into the 2025-2026 financial plans.

·         There were discussions underway between Devon wide authorities around how this additional money should be utilised.

·         The money potentially could be ring-fenced to address housing challenges.  Discussions were still ongoing around this proposal.

·         Once this had been agreed upon a further recommendation would be made to full council on how to utilise the additional income.

RECOMMENDED that Council approve implementing the following:

(a)  That Members re-confirm their decision to apply the 100% premium for empty dwellings after a period of one year rather than two years from 1 April 2024.

(b)  That Members re-confirm their decision to introduce a premium of 100% for all dwellings which are unoccupied but substantially furnished (included are second homes) from 1 April 2025.

(c)  That Members approve the policy detailing the Council’s approach to the levying of the empty homes premium and second homes premium.

(d)  That all other existing discretionary discounts remain unchanged.