Agenda item

The Deputy Leader of the Council to present the recommendation of the Place and Resources Overview Committee on 9 February 2023

The Deputy Leader and the Portfolio Holder for Adult Social Care and Health advised that, the report before them derived from the proposed legislation within the Levelling Up and Regeneration Bill that acknowledged some of the impact that second and empty homes could have on communities.

The proposed changes would allow councils to place a council tax premium on second homes and permit a 100% premium on empty properties at an earlier one-year commencement point.

The Portfolio Holder acknowledged that the proposals had caused concern from some second homeowners, and he invited the Head of Revenues and Benefits to set out some ‘frequently asked questions’ in respect of this matter. (These would also be circulated to members after the meeting).

However, it was also recognised that this matter was linked to housing issues, including the levels of people on the housing register and the number of people living in temporary accommodation and homelessness.

The Portfolio Holder appreciated the cross-party support of the Place and Resources Overview Committee for the report and welcomed their additional recommendations.

Cllr P Wharf proposed the recommendations, and this was seconded by Cllr L Beddow.

The Director of Legal and Democratic Services advised that the Levelling Up and Regeneration Bill was currently at the committee stage of Parliament, and it was not clear when it would be enacted. However, the government had made it clear that, as a billing authority, if the council wished to adopt any of the flexibilities on council tax, a determination must be made by Full Council at least 12 months prior to the financial year in which the changes were to take effect. If members wished any changes to take effect in 2024, a decision must be made by the end of March 2023. If the Bill was not enacted by the end of March 2023, any flexibilities could not be put into place until 2025.

Non-executive members asked several detailed and technical questions with the majority supporting the proposals in the report. In respect of a question around having a exact percentage within recommendation (c), the Portfolio Holder agreed that he would discuss this with the Executive Director for Corporate Development prior to the report coming forward to Full Council.

At this juncture it was proposed by Cllr J Haynes and seconded by Cllr T Ferrari that in accordance with Procedure Rule 8.1 the meeting should be extended beyond the three-hour threshold to complete the business on the agenda.  Upon being put to the vote this was unanimously agreed.

In continuing the discussion, Cabinet members agreed that there was recognised data on the impact of rural communities in respect of second homes and noted that the delivery of services in shire authorities did come at a premium.  In addition, the council received lower levels of central government funding and therefore they unanimously supported the recommendations.

Recommendation to Full Council

(a)   That Full Council approve the following additional council tax premiums to be applied from 1 April 2024, or as soon as possible thereafter, subject to the required legislation being in place.  That approval is given to:

(i)      100% premium for dwellings occupied periodically.

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

(b)    That Cabinet review the council tax premiums for second homes and empty properties after two years of implementation.

(c)    That consideration be given to using a percentage of the additional income received through the premiums to support affordable housing projects, if the Council has a balanced budget.

Reason for the decision

The Levelling Up and Regeneration Bill has an avowed aim to reverse geographical disparities between different parts of the UK. The Bill is wide-ranging, including provisions for more widespread devolution across England, changes to local planning and enhancing the ability of local authorities to take forward regeneration schemes. Additionally, the Bill will create a legal duty upon which the government must report on a number of missions for levelling up the country.

A growing number of local authorities across England were now making decisions in support of adopting the council tax premiums on second homes and empty properties, including a number in the Southwest. Within this context, it was important to recognise that the Levelling Up and Regeneration Bill contained enabling elements to go beyond the council tax premiums on second homes and empty properties. How councils embraced additional freedoms and flexibilities that come through legislation, especially when pertaining to more financial discretionary powers, could influence future discussions on substantive issues such as devolution.