Issue - meetings

To consider a recommendation from Cabinet in respect of increasing the Council Tax Empty Property Premium.

At its meeting on 15th January, 2018, the Cabinet considered a report in respect of the proposed increase in Council Tax Empty Property Premium.

From 2013/14 the Government introduced changes affecting the way that Council Tax was charged on certain types of empty property or second homes, by allowing Local Authorities increased discretion to set the level of charges locally. 

One option available to Local Authorities was the introduction of a 50% Premium for long term empty properties which had been unoccupied and substantially unfurnished for a period of over two years. The principle of the introduction of the Premium was to incentivise owners to bring empty properties back into use.

The Council introduced the Council Tax Premium with effect from 1^st April, 2013 with the 50% Premium being charged on the two year anniversary of a property becoming unoccupied and substantially unfurnished.

In the November 2017 Budget statement, the Chancellor of the Exchequer announced that authorities would be given the power to increase the Council Tax empty homes premium from the current level of 50% to 100% as further encouragement to owners to bring empty properties back into use.

No further detail has yet been released by the Government regarding the implementation timeline or any exceptions that may be introduced and the change would require legislation meaning the earliest implementation date cannot yet be confirmed. 

Resolved:-  That an increase in the Empty Property Premium from 50% to 100% from the 1st April, 2018 or any later date upon which the Autumn Budget 2017 provision to increase the Empty Homes Premium was implemented.

Mover:-  Councillor Alam                        Seconder:-  Councillor Read

Report of the Strategic Director of Finance and Customer Services

Cabinet Member:     Councillor Alam

Commissioner:         Ney (in advisory role)

Recommendations:

That Cabinet recommend to Council:

1.    That an increase in the Empty Property Premium from 50% to 100% from the 1 April 2018 or any later date upon which the Autumn Budget 2017 provision to increase the Empty Homes Premium is implemented.

Consideration was given to a report that detailed how from 2013/14 the Government introduced changes affecting the way that Council Tax was charged on certain types of empty property or second homes, by allowing Local Authorities increased discretion to set the level of charges locally. 

One option available to Local Authorities was the introduction of a 50% Premium for long term empty properties which had been unoccupied and substantially unfurnished for a period of over two years. The principle of the introduction of the Premium was to incentivise owners to bring empty properties back into use.

The Council introduced the Council Tax Premium with effect from 1^st April, 2013 with the 50% Premium being charged on the two year anniversary of a property becoming unoccupied and substantially unfurnished.

In the November, 2017 Budget statement, the Chancellor of the Exchequer announced that authorities would be given the power to increase the Council Tax empty homes premium from the current level of 50% to 100% as further encouragement to owners to bring empty properties back into use.

No further detail had yet been released by the Government regarding the implementation timeline or any exceptions that may be introduced and the change would require legislation meaning the earliest implementation date could not yet be confirmed. 

This report had been considered by the Overview and Scrutiny Management Board as part of the pre-scrutiny process who were in support of the recommendations with a further suggestion that clarity about the appeals process was provided to affected residents.

Resolved:-  That Council be recommended to approve an increase in the Empty Property Premium from 50% to 100% from the 1st April, 2018 or any later date upon which the Autumn Budget 2017 provision to increase the Empty Homes Premium was implemented.

Consideration was given to a report that detailed how from 2013/14 the Government introduced changes affecting the way that Council Tax was charged on certain types of empty property or second homes, by allowing Local Authorities increased discretion to set the level of charges locally. 

One option available to Local Authorities was the introduction of a 50% Premium for long term empty properties which had been unoccupied and substantially unfurnished for a period of over two years. The principle of the introduction of the Premium was to incentivise owners to bring empty properties back into use.

The Council introduced the Council Tax Premium with effect from 1^st April, 2013 with the 50% Premium being charged on the two year anniversary of a property becoming unoccupied and substantially unfurnished.

In the November, 2017 Budget statement, the Chancellor of the Exchequer announced that authorities would be given the power to increase the Council Tax empty homes premium from the current level of 50% to 100% as further encouragement to owners to bring empty properties back into use.

No further detail had yet been released by the Government regarding the implementation timeline or any exceptions that may be introduced and the change would require legislation meaning the earliest implementation date could not yet be confirmed. 

Members queried whether information on the Valuation Tribunal appeals process was provided to affected individuals and recommended that this should become standard practice when issuing correspondence.

Resolved:- 

1.    That the recommendation to Council be supported for approval of an increase in the Empty Property Premium from 50% to 100% from the 1st April, 2018 or any later date upon which the Autumn Budget 2017 provision to increase the Empty Homes Premium was implemented.

2.    That clarity be provided to affected persons on the appeals process.