Agenda item

Council Tax - Empty and Second Homes Premium

This report sets out for approval changes affecting both Council Tax and Business Rates from 1 April 2024.

Decision:

Cabinet RESOLVED

(1) To approve the Council’s National Non-Domestic Rates (NNDR) Discretionary Scheme in relation to 2024/25 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, Resident Services in consultation with the Corporate Director, Finance and Resources to implement the discretionary schemes as set out in Appendix 1 of the report.

(3) That from 1 April 2024 in accordance with the provisions of The Levelling-up and Regeneration Act 2023 the Council:

i. introduces the council tax premium of an additional 100% for those domestic properties empty for longer than 1 year.

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

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

iv. from 1 April 2025, introduces a premium of 100% to domestic properties determined to be applicable Second Homes.

(4) To note the communication campaign (as detailed within section 3.3.16 of the report) to highlight to owners of empty property how the council may be able to help them make better use of their property.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Monday 12 February 24

Minutes:

Councillor Donnelly-Jackson (Cabinet Member for Customers, Communities and Culture) introduced a report seeking approval to proposed changes affecting both Council Tax and Business Rates from 1 April 2024.

As further context to the proposed changes on which approval was being sought, Cabinet noted that in terms of business rates guidance relating to the provision of discretionary local retail, hospitality and leisure relief discount schemes had now been extended for 2024-25. Having already been approved by Cabinet (March 2023) it was therefore noted that the Council’s existing business relief scheme for small and medium properties would be continued for 2024-25 and 2025-26 enabling relief to carry on being provided for eligible and occupied retail, hospitality, and leisure properties in order to maintain levels of support available for local business. In terms of Council Tax, members were also advised of the powers now being made available through the Levelling-up and Regeneration Act 2023 to tackle ongoing issues around vacant properties and second home in the borough through the provision of additional discretion for local authorities to increase Council Tax on properties left as vacant. Members were advised that since April 2019, the Council had charged a Council Tax premium of 100% on a property which had been empty for two years which had risen to 200% for five years and 300% if empty for more than ten years with the aim, given the current number (1,859) of empty domestic properties within the borough, of encouraging owners to bring their properties back into use.

Given the current demand for housing, rising number of tenants in temporary accommodation and shortage in supply, members were keen to consider all available options which included encouraging those who owned empty properties and second homes to maximise their availability and use, with the powers available being utilised to allow the existing long-term premium on empty homes to commence once a property had been empty for a year, rather than the current two year period. Alongside this change it was also proposed to charge a premium on second homes given they also tended to be underutilised and unoccupied, which had again been designed with the aim of encouraging the property to be brought back into use and would apply (allowing for the required period of notice) from the 1 April 2025.

In noting that details of the proposed changes would be widely publicised as part of a wider communications strategy focussed on available options to bring empty properties back into use as a means of supporting the work to address the current housing shortage Cabinet, in support of the approach outlined, RESOLVED:

(1) To approve the Council’s National Non-Domestic Rates (NNDR) Discretionary Scheme in relation to 2024 - 25 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.