Agenda item

Key Decision

Councillor David Martin – Deputy Leader and Executive Lead Member for Finance, Revenues and Benefits

Cabinet was requested to review and determine the level of Council Tax discounts to be applied for empty properties by the Council with effect from 1 April 2023, including agreement as to the proposed increases to Council Tax Premiums from April 2024 and the Council Tax Support (CTS) Scheme for 2023/24, as presented.

Members considered the alternative option of declining to approve the recommendations as presented, but this was not recommended as failure to apply new powers to Council Tax premiums (from April 2024) would result in premiums remaining at current rates, the reuse of empty properties not be incentivised and the potential for additional council tax income being foregone.

RESOLVED that

a)    Council be recommended to approve the following:

Empty discounts –

·       The current empty discount for Class C - Unoccupied/substantially unfurnished which is allowable for a maximum of 6 months remains at 100% discount for 1 month followed by 25% discount for 5 months.

·       The current Class A - Second Homes, No one’s sole or main residence/furnished – 28 days planning restriction remains at the current 0% discount.

·       The current Class B – Second Homes, No one’s sole or main residence/furnished – No planning restriction remains at the current 0% discount.

·       The Class D Structural repairs (Unoccupied & substantially unfurnished) which is allowable for 12 months should be a 0% discount for the whole period.

Empty premiums -

·       The Council continues to apply the maximum premiums allowable in legislation for Long Term empty properties as it currently does.

b)    approval be given to the following in principle:

·       the following additional Council Tax premiums be applied from 1 April 2024, or as soon as possible thereafter, subject to the required legislation being in place:

- 100% premium for properties which have been empty and unfurnished for a period of between 1 (previously 2) and 5 years

Council Tax Support Scheme -

·       the Council in accordance with Schedule 1A Section 13A of the Local Government Finance Act 1992 (Council Tax Reduction Schemes) approves an unchanged scheme for Council Tax Support for 2023/24.

Reasons:

1.    The retention of the same levels of Council Tax discount, for empty properties and second homes will continue to deliver additional Council Tax income for the Council without disadvantaging any vulnerable members of the community.

2.    The council tax premiums for empty properties will continue to incentivise the occupation of empty property, allowing more homes to be available for occupation for local people. The additional premiums recommended for the 2024/25 year will further incentivise the occupation of empty properties and it may generate additional income for the District and precepting bodies, which facilitates the delivery of essential front-line services.

3.    The Council’s proposed Council Tax Support Scheme being unchanged will mean that the level of Council Tax Support provided to the District’s working age claimants will effectively mirror that previously provided under the national Council Tax Benefit scheme and continue to support those with the lowest incomes and our most vulnerable customers. This is particularly important to maintain during the Cost-of-Living Crisis.