Agenda item

Council Tax Premiums on Second Homes and Empty Properties

To receive a report from K Hale, Head of Revenue and Benefits.

Minutes:

Cllrs: Pauline Batstone, Toni Coombs, Spencer Flower, Robin Legg, Jon Orrell, Mike Parkes, Gary Suttle, William Trite and Sarah Williams had declared an interest in this item, they left the meeting at 21:15 and did not participate in the item.

 

The Portfolio Holder for Corporate Development and Transformation presented the report to consider the potential power to levy Council Tax Premiums, there was a one-word amendment to 7.1 in the policy to read: “Any amount of premium received will be part of the Council’s Collection Fund and will be shared between the Council and ALL Precepting authorities in line with their share of the Council Tax.”

 

Cllr N Ireland proposed and Cllr R Hope seconded the following amendment.

 

Delete item 4.

 

Replace with …

4.

4.1           40% of the additional income from the council tax on second homes in Dorset is allocated to the Housing budget annually.

4.2           Any unused or unallocated funds from this budget are transferred to Housing reserves at the end of the financial year and ring-fenced for new supply.

4.3           Any income clearly generated from this budget to be transferred to Housing reserves.

4.4           The budget to be used for the following purposes:

·     In support of new build, on site, affordable housing from s106 agreements. These properties should be viable however there are occasions when they are not and s106 off site contributions are required to deliver them. In the absence of sufficient off site s106 funding, this budget may be used.

·     To spot purchase properties as required for temporary accommodation for homeless residents.

·     To be available for matched funding for government grants, as and when they become available, to increase the amount of affordable housing in Dorset.

·     To be used in support of increasing the amount of affordable homes owned by Dorset Council with due regard to the need for a Housing Revenue Account.

4.5           Delegation to officers for spend of <=£200K. Spend in excess £200K to be authorised with the agreement of the relevant portfolio holder, Head of Housing and s151 officer.

 

Members debated the amendment and while all in agreement that there was a requirement for more affordable housing in Dorset there were some concerns that the council was hypothecating part of its budget.  The amendment could unfairly commit a new council following the May elections and the amount of revenue from the scheme could not be predicted.

 

On being put to the vote the amendment was CARRIED. 

 

Proposed By Cllr S Jespersen, seconded by Cllr L O’Leary 

 

Decision: In accordance with procedural rule 8.1 a vote was taken, the committee agreed to exceed the 3-hour meeting time limit.

 

Members voted on the substantive motion.

 

Proposed by Cllr J Haynes, seconded by Cllr M Roberts

 

Resolved:

 

1.      That from 1 April 2025 a 100% Council Tax premium would apply to all dwellings occupied periodically (second homes) other than those included as exceptions.

 

2.      That from 1 April 2024 the 100% Council Tax premium for properties which have been empty and unfurnished would be applied from the earlier 1-year commencement point, a change from the current 2-year commencement point, other than those included as exceptions.

 

3.      That cabinet review the Council Tax Premiums for both Second Homes and Empty Properties after two years of implementation.

 

4.1  40% of the additional income from the council tax on second homes in Dorset is allocated to the Housing budget annually.

4.2  Any unused or unallocated funds from this budget are transferred to Housing reserves at the end of the financial year and ring-fenced for new supply.

4.3  Any income clearly generated from this budget to be transferred to Housing reserves.

4.4  The budget to be used for the following purposes:

 

·        In support of new build, on site, affordable housing from s106 agreements. These properties should be viable however there are occasions when they are not and s106 off site contributions are required to deliver them. In the absence of sufficient off site s106 funding, this budget may be used.

·        To spot purchase properties as required for temporary accommodation for homeless residents.

·        To be available for matched funding for government grants, as and when they become available, to increase the amount of affordable housing in Dorset.

·        To be used in support of increasing the amount of affordable homes owned by Dorset Council with due regard to the need for a Housing Revenue Account.

4.5  Delegation to officers for spend of <=£200K. Spend in excess £200K to be authorised with the agreement of the relevant portfolio holder, Head of Housing and s151 officer.

 

 

5.   That following the outcome of DLUHC’s National consultation, authority to amend exceptions to this policy as a result of any changes to National binding regulations, are given to the Section 151 officer in consultation with the appropriate Portfolio Holder

Supporting documents: