Issue - meetings

(Finance Portfolio Holder) To consider the attached report (C-030-2016/17).

(1)       That, for the financial year 2017/18, class C properties which were unoccupied and substantially unfurnished, as defined under Section 11A(4A) of the Local Government Finance Act 2012, be in receipt of 100% Council Tax discount for one month only; and

(2)       That should a dwelling cease to be vacant then no further period of discount be awarded for at least two months with immediate effect.

The Finance Portfolio Holder presented a report on Council Tax Discounts for vacant properties.

The Portfolio Holder stated that The Local Government Finance Act 2012 contained reforms to Council Tax which provided a number of discretions for councils relating to empty properties. Since 1 April 2013, the Council had exercised its discretion and had awarded a 100% discount on vacant properties for three months, after which 100% Council Tax was payable. It was recommended that the period of 100% discount be reduced from three months to one month. In addition, it was also recommended that an explicit clause be added preventing abuse of the discount provision by requiring a two month period before a further period of discount could be awarded.

Decision:

(1)       That, for the financial year 2017/18, class C properties which were unoccupied and substantially unfurnished, as defined under Section 11A(4A) of the Local Government Finance Act 2012, be in receipt of 100% Council Tax discount for one month only; and

(2)       That should a dwelling cease to be vacant then no further period of discount be awarded for at least two months with immediate effect.

Reasons for Decision:

The reduction of the period allowed for 100% discount on empty properties would further incentivise owners and landlords of properties to re-occupy their properties. It would also provide additional Council Tax income to this authority and other major preceptors of around £300,000 of which around £30,000 would be received by this authority.

Other Options Considered and Rejected:

To not reduce the discount from three months to one month, or to reduce the discount to two months or no discount at all.

To not insert a clause requiring two month period before a further period of discount is awarded.