Issue - meetings

This report details a number of changes affecting both Council Tax and Business Rates, including the discretionary rate relief schemes relating to Retail, Hospitality and Leisure, Small Business, Private Schools and Film Studios alongside clarifying the Council’s approach to possible exemptions to the premiums charged for empty property and second homes (periodically occupied property) from 1 April 2025.

Cabinet RESOLVED:

(1)        To approve the Council’s National Non-Domestic Rates (NNDR) Discretionary Scheme in relation to 2025/26 Retail, Hospitality and Leisure Relief as set out in Appendix 1 of the report and pursuant to the Council’s powers under section 47 of the Local Government Finance Act 1988 as amended.

(2)        To delegate authority to the Corporate Director, Partnerships, Housing and Residents Services (Corporate Director Housing and Residents Services from 1 April 2025) in consultation with the Corporate Director, Finance and Resources to implement the discretionary schemes as set out in Appendix 1 & 2 of the report.

(3)        To approve the revised local discretionary rate relief policy, that is brought into line with the removal of 80% relief from private schools, excepting SEND schools as set out in Appendix 3 of the report.

(4)        To approve the scheme for Film Studio Relief in accordance with the published government guidance as set out in Appendix 4 of the report

(5)        To note that from 1 April 2025 for Council Tax:

a.           That the council maintains an additional 100% charge for those domestic properties empty for longer than 1 year.

b.           That the council maintains the council tax premium of 200% in respect of domestic properties that have been empty for longer than 5 years.

c.           That the council maintains the council tax premium of 300% in respect of domestic properties that have been empty for longer than 10 years.

d.           A premium of 100% to domestic properties determined to be applicable Second Homes (periodically occupied) as agreed by Cabinet on 6 February 2024.

e.           Exemptions to these charges will be operated in accordance with government guidance.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Monday 17 March 2025

Councillor Donnelly-Jackson (as Cabinet Member for Housing & Resident Services) introduced a report from the Corporate Director Partnerships, Housing & Resident Services seeking approval to a number of changes affecting both Council Tax and Business Rates, including the discretionary rate relief schemes for Retail, Hospitality and Leisure, Small Business, Private Schools and Film Studios alongside clarification of the Council’s approach towards possible exemptions to the premiums charged for empty properties and second homes (periodically occupied property) from 1 April 2025.

In presenting the report, Cabinet were advised of the importance of the proposed changes in terms of not only supporting local communities and investing in public services but also in terms of the efforts being made to address inequality across the borough.  This included proposals to maintain and expand Council Tax premiums on empty and second homes, designed to incentivise and maximise use of all available properties to address pressure on the supply of affordable housing and support efforts to tackle demand in relation to housing need.  As part of this approach. Members were advised the proposals included a 100% Council Tax premium on properties left empty for more than one year, 200% premium on those empty for five years and 300% premium on properties empty for over ten years along with a 100% premium on second homes, which had also been designed to discourage property speculation pricing local families out of the local market and ensure properties were available for use as and when needed whilst also generating additional revenue for reinvestment into local services.

In addition, Cabinet noted the proposals also included key relief (funded by central government) to support local small businesses and priority sectors.  Members were advised that these proposals included the offer of a 40% discount on business rates under the Retail, Hospitality and Leisure Relief Scheme which, whilst it was recognised involved a reduction from the previous level, had been designed to continue recognising the need to support local traders and high streets supplemented by the Small Business Relief Scheme aimed at ensuring small and medium-sized enterprises (SMEs) also continued to receive necessary support.  As part of the wider package of relief measures the proposals also included a Film Studio Relief scheme providing a 40% discount for eligible studios, designed to support the borough’s creative industries and assist in attracting further investment.  Taken together the package of measures outlined were identified as essential in support of a strong local economy, maintaining jobs, and ensuring businesses could continue to grow and invest in the borough.

As a final issue attention was drawn to the proposed removal, following government legislation, of the 80% mandatory rate relief from private schools.  Highlighting education as a right not a privilege, support was expressed at the approach outlined, in an effort to address the current inequity in the tax position and ensure a fair deal for all, with members assured that support would be retained for those schools specialising in Special Education Needs provision for those children with Education, Health and Care  ...  view the full minutes text for item 9