Agenda item

(Cabinet Member with Special Responsibility Councillor Bryning)

Report of the Head of Resources

(Cabinet Member with Special Responsibility Councillor Bryning)

Cabinet received a report from the Head of Resources to inform Members of various new discretionary powers available with regard to council tax discounts, premiums and exemptions, and seek Cabinet’s recommendations on their adoption for referral on to Council.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

There were three options available for consideration.  Appendix D to the report set out an equality impact assessment and this had informed development of the proposals.  Inevitably, however, balancing the differing impact on stakeholders involved judgement and as such, any policy changes adopted would be kept under review after implementation.

Option 1

To recommend the introduction of a charging policy in line with recommendations

Would encourage owners to bring property back into occupation and provided flexibility where appropriate.  The two month exemption period for Class “C” dwellings catered for short turnover periods between occupiers.

         Option 2

            To decide not to recommend any changes in charging policy to Council

            Would lose the opportunity to raise additional income for the Council and its   precepting partners, as well as losing any associated impact on helping to bring empty homes back into use.

            Option 3

To recommend an alternative, e.g. maximising charges by using the discretionary powers to their limit

Whilst potentially such a policy might maximise income generation, it might provide a disincentive to repair property and bring back into use and would not cater for short empty periods between occupiers.  Landlords would be liable for charges during all turnover periods and this may have knock on implications for the rental market.

Option 1 was the preferred option in line with the following comments:

(i)  For Class “A” dwellings it was considered that the Council should provide a reasonable but not excessive exemption period to promote property development, particularly supporting major upgrading and improvement to poor quality housing stock.

            (ii)  For Class “C” dwellings it was considered that the Council should provide an initial two month exemption period to allow for the changeover of occupiers, particularly tenants, and 50% discount for an empty period for a further four months after which the full charge would be applied.

            (iii)  For Second Homes it was considered that the Council take advantage of this flexibility to levy an extra 10% charge to homeowners of second homes, who should contribute fully towards services and generally they had a choice in ownership.

(iv)  For long-term empty homes it was considered that the Council should levy a 50% premium on homes that had been empty for more than 2 years.  This initiative should encourage owners to return them to use, whilst providing additional income to the Council.

There was potential for the Council to raise additional revenue in adopting these discretionary powers.  However, it was noted with caution that income relating to empty properties generally proved difficult to collect and staffing resources, collection performance and bad debt provisions would continue to be reviewed, should the Council choose to adopt these proposals. 

Any “Empty Homes Premium” for properties empty for more than 2 years must be seen to operate fairly and be equitable to all owners, whilst also making sense in the context of the broader local strategy for dealing with empty homes

Councillor Bryning proposed, seconded by Councillor Hanson:-

“(1)      That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

(7 Members (Councillors Barry, Blamire, Bryning, Hanson, Leytham, Sands and Smith) voted in favour, and 1 Member (Councillor  Hamilton-Cox) abstained.)

Resolved:

(1)               That Council be recommended to adopt the following changes in council tax charging policy for 2013/14 onwards, for implementation by the Head of Resources under her delegated authority:

i.         replacement of the current exemption of up to twelve months for properties undergoing or in need of major repairs or structural alteration, with a discount of 50% for up to 12 months (Class A);

ii.       replacement of the current six month exemption followed by a 50% discount for empty homes, with an exemption for two months followed by a discount of 50% for up to a further four months only (after which, a full charge would apply);

iii.      removal of the 10% discount on second homes; and

iv.     introduction of a premium of an additional 50% of council tax due on properties that have been empty for two or more years.

Officers responsible for effecting the decision:

Head of Resources

Reasons for making the decision: