Issue - meetings

To consider the report of the Director (BA).

Corporate Services Scrutiny Committee considered the report at its meeting on 22 November 2018 and its comments will be reported.

The Director (BA) presented the report which advised of the Government proposal to allow Local Authorities to increase theCouncil Tax Long-Term Empty Premium from a maximum of 50% to a maximum of 100%. This would affect properties that had been empty for two or more years. The Council had discretion as to the premium it wanted to apply, the recommendation was to ask Members to support the maximum premium. Whilst the income this premium generated would only be just over £4,000 pa, it was hoped that the increase would help to bring empty homes back into use.

The Portfolio Holder for Economy and Culture welcomed this premium increase which could not only help to bring empty properties back into use, providing much needed homes but also improve neighbourhoods.

Corporate Services Scrutiny Committee considered the report at its meeting on 22 November 2017 and its comments were reported.

RECOMMENDED that Council adopt the increase in the Council Tax Long-Term Empty Premium from 50% to 100% from the 1 April 2019.

To consider the report of the Local Taxation Lead.

The Local Taxation Lead presented the report on the Government proposal to allow Local Authorities to increase the Council Tax Long-Term Empty Premium from a maximum of 50% to a maximum of 100% from 1 April 2019. on the assumption that the primary legislation was in place. This would affect properties that had been empty for two or more years. He explained that the Council was committed to reducing the number of empty homes and that the 100% premium would be an important tool to support this aim. Although there would be some financial reward for the Council through the New Homes Bonus scheme introduced in 2011, and in the region of £5,000, the focus of this initiative was to encourage owners of empty homes to bring their properties back into use.

In responses to questions from the Members, the Local Taxation Lead explained:-

• they were working with the Environmental Health Section to offer greater incentives for the owners of long term empty properties. It could be more difficult to engage with owners who may not be in the locality or who would rather pay the additional council tax levy rather than sell, particularly if there was an emotional attachment to the property.

• the advice given by the Government in 2013 was that if it could be shown that a property was actively being marketed for rent or for sale, then the premium would not apply.  This information was set out on the council tax bill and the Council’s web site.

• he was not aware of any changes due to the setting up of the Council’s new development company. The Director added that Environmental Health were now a part of the Housing Development team and as such were more aware of the private sector property in the city. The Director (JY) would identify the issues and review as much as possible before bringing into use. 

• the report was presented on a yearly basis to Government and the council tax evaluation information was only available in the reported format, but he would send by year statistics on the number of Long Term Empty Premium cases going back to April 2013.

• there were just over 50 Band H properties, of which two are long term empty premises cases.  If the policy was adopted then the owners of those properties would have to pay up to £7,000 which was likely to prove a greater incentive to bring a property back into use.

Corporate Services Scrutiny Committee supported the report and requested Executive and Council approve the adoption of the increase in the Council Tax Long-Term Empty Premium from 50% to 100% from the 1 April 2019 assuming the relevant primary legislation is in place.