Agenda item

HC 77/22         

Members considered a report which provided a summary of the findings of the recent consultation on changes to the Local Council Tax Reduction Scheme and sought a decision on a Scheme for 2023/24.

The report also provided details of the Government’s Council Tax Support Fund and the current Council Tax Discounts and any proposed changes resulting from the Levelling up and Regeneration legislation.

In the ensuing debate, particular reference was made to:

(a)   Additional monies received via an Empty Homes premium.  When questioned, officers confirmed that the monies were distributed proportionately between each of the precepting authorities.  Furthermore, Members noted that this matter was solely a decision for the Borough Council in its capacity as the billing authority;

(b)   the incentives (and range of options) to encourage homeowners to let their properties were both recognised and welcomed;

It was then:

RESOLVED

1.    That the content of the report be noted;

That Council be RECOMMENDED:

2.    to approve a local Council Tax Reduction Scheme for 2023/24 that as follows:

-      Makes no changes to Band 1 of the current banded scheme;

-      Uplifts Bands 2, 3 and 4 by 20% (above current inflation) to take into account the Cost of Living crisis;

-      Replaces the current range of earnings disregards with a single £25.00 disregard; and

-      Makes changes to the Minimum Income Floor by adjusting the income calculation for self-employed claimants who receive carer’s allowance, personal independence payments or disability living allowance.

3.    that delegated authority be given to the Director of Strategic Finance, in consultation with the Lead Member for Benefits and the Head of Revenues and Benefits, to agree the uprating of working age regulations incorporated into the local Council Tax Reduction Scheme in line with those announced by the Department for Work and Pensions;

4.    that officers be instructed to take immediate steps to apply the £25.00 Council Tax Support Fund payment to the 2023/24 council tax bills of eligible council taxpayers, as announced by the Government on 19 December 2022, and bring forward proposals for a discretionary scheme in late spring 2023;

5.    to adopt the Council Tax discounts as follows (with effect from 1 April 2023):

(a)   The discount for unoccupied and substantially unfurnished properties is 100% for a maximum period of 1 month;

(b)   The discount for unoccupied and substantially unfurnished properties for 1 month to 2 years is zero;

(c)   The discount for properties which are vacant and require major repair work to render them habitable is 50% for maximum period of 12 months;

(d)   The discount for unoccupied furnished properties (second homes) is zero;

(e)   An empty homes premium of an additional 100% is levied on properties that have remained unoccupied and substantially unfurnished for at least two years, but less than five years;

(f)    An empty homes premium of an additional 200% is levied on properties that have remained unoccupied and substantially unfurnished for at least five years, but less than ten years;

(g)   An empty homes premium of an additional 300% is levied on properties that have remained unoccupied and substantially unfurnished for at least ten years or more; and

6.    That, in principle, the following additional council tax premiums be applied from 1 April 2024, or earlier if allowed, subject to the required legislation being in place:

-    100% premium for properties which have been unoccupied and substantially unfurnished for a period of between 1 and 2 years; and

-    100% premium for second homes.