Decision details

To consider a report of the Cabinet Member for Resources seeking approval of the policy for discounts for empty homes (to replace the existing Class A and Class C exemptions), long term empty homes and second homes to be implemented from 1 April 2013.

(i)  Recommends that Full Council

(a)  Approves the policy that the empty homes discount is left at 100% for Class C empty properties but that the discount is reduced from six months to one month from 1 April 2013.

(b)  Approves the policy that the empty homes discount is reduced from 100% to 50% for Class A empty properties from 1 April 2013.

(c)  Approves the introduction of a long term empty properties premium set at 50% from 1 April 2013.

(d)  Approves the removal of the second home discount so that Council Tax will be payable in full on these properties from 1 April 2013.

(e)  Approves the introduction of discretionary hardship support under section 13A of the Local Government Finance Act 1992 with effect from 1 April 2013 as set out in Appendix 1.

(f)  Delegate authority to the Chief Financial Officer (CFO) following consultation with the Cabinet Member for Resources to approve the NNDR 1 return for the City Council from 2013/14 and for future years.

1.  The new regulations contained in the Local Government Finance Act 2012 allow the Council to make significant changes to the discounts and exemptions that are currently offered on Council Tax.

2.  Having considered the options presented by these changes the proposed changes will raise additional revenue for the Council and preceptors to help protect local services at a time when national funding for local Councils is being withdrawn, and should encourage bringing empty homes back into use.

3.  Due to technical changes resulting from the outcome of the local government funding review, which are contained within the Local Government Finance Act 2012, the approval process for the NNDR Return which has previously been a responsibility of the Chief Financial Officer (CFO) now needs to be formally delegated by Council to the CFO.

1.  Clearly there are a huge number of variables and alternative options that could be implemented.  Alternative packages have been considered and the key factors that have been taken into account in reaching this final set of proposals are set out in paragraph 14.

2.  These proposals aim to balance increases in Council Tax income against the risk of non-collection and any possible loss of grant funding and also consider the housing needs of the City.

3.  There are no alternative options to the delegation of the approval of the NNDR 1 return as the return must be completed in line with regulations.  The ability of Members to directly influence the estimate of NNDR is very limited.