Report by Executive Director of Resources

The Director of Finance submitted a report recommending changes to the Council’s approach in respect of certain discretionary areas within Council Tax legislation in relation to empty and second home premiums. The Levelling Up and Regeneration Act allowed the Council to make further amendments to the levying of Council Tax premiums within the Borough with effect from both 1 April 2024 and 1 April 2025.  A large part of the Council Tax legislation was mandatory on all billing authorities within England.  However, there were areas where each Council may determine the type and levels of charge to be made.  The main discretionary areas in place currently were as follows:

·       Second homes (premises which were no-one’s sole or main residence but were furnished)

·       Unoccupied and substantially unfurnished premises

·       Unoccupied and substantially unfurnished premises which required or were undergoing structural repairs; and

·       Currently, premiums where premises had been unoccupied and substantially unfurnished for a period exceeding 2 years.

When determining its policy, each billing authority had to decide the level of discount (if any) to be granted and the amounts (percentage) of any premium by 31 March prior to the financial year in which it wanted to introduce the changes.  Where a change was proposed, there was a requirement to determine the level of any discount or premium and a decision was required to be made by Council under Section 11A, 11B and the new 11C of the Local Government Finance Act 1992. 

The following motion was moved by Councillor Brock and seconded by Councillor Terry and CARRIED:

Resolved –

(1)            That from 1 April2024, the maximum level of Empty Homes premium be leviedas follows:

(a)            100% for dwellings which were unoccupied and substantially unfurnished for more than 12 months and up to 5 years;

(b)            200% for dwellings which had been unoccupied and substantially unfurnished for between 5 and 10 years;and

(c)            300% for dwellings which had been unoccupied and substantially unfurnished for 10 years ormore.

(2)            That from 1 April 2025:

(a)            The continued application of Empty Homes premiums as set out above be approved; and

(b)            The application of a Second Homes Premium of 100% for all dwellings that were no one’s sole or main residence and which were substantially furnished be approved;

(3)           That, subject to the outcome of the Government consultation which was recommending exceptions to Empty Home premiums in certain circumstances (as outlined in paras 1.28 – 1.30 of the report), the Section 151 Officer be given delegated authority to implement the Council's policy on premiums in line with statute, the Council’s requirements and any guidance given by the Secretary of State.