Issue - meetings

Report of the Cabinet Member Finance

 Having declared an interest in this item Councillors Garnham, Massey and Seacome left the chamber.

The Cabinet Member Finance presented the report which set out the greater discretions allowed to local authorities by the Government in deciding council tax exemptions and discounts.  He felt the proposals in the report were quite simple; to remove the 10% discount on second homes and abolish the exemptions in Classes A and C and replace them with discounts, as set out on page 3 of the report.  More details about the situations in which these changes would apply were given on pages 5 and 6 of the report. 

He believed the changes being proposed were right for three reasons; firstly, they would result in the distribution of the tax burden more fairly, secondly, they would generate additional income and help to offset the Government cut in council tax support and thirdly, they would encourage owners to bring empty properties back into use more quickly, a desirable objective in itself, which would also benefit the Council by increasing the tax base, as explained on page 4.

The Cabinet Member Finance gave the following responses to questions from members;

• A letter was sent to all landlords who were awarded class C discounts and for some time this had included a reference to the upcoming changes.  The consultation that had been undertaken had included an online questionnaire and a letter to relevant people across the county and representations from landlords had been received.  He took the point that landlords would need time to advertise a property, etc, but felt that many would receive 1 months notice from tenants and at this stage, given that countywide agreement had been achieved, he was reluctant to unpick parts which would cause delays and have a considerable impact.  It was his feeling and one shared by Officers that 1 month free and 5 months discount was reasonable. 
• Members could be assured that the council was relentless in its pursuit of outstanding council tax and Officers worked hard to identify owners.  A common misconception was that collection did not continue beyond the year end once the in-year collections figures were published. 

A member gave the recommendations her wholehearted support and expressed her hope that this would help to increase housing availability within the town.

The Mayor raised a general point regarding instances whereby councils worked together to develop common policies.  He queried how borough councillors were able to influence recommendations in a timely manner before matters were brought before Council for a decision, at which point amendments resulted in delays which may not be acceptable to other authorities.   

Upon a vote it was unanimously

RESOLVED that;

1.      The level of discount for former class A exempt properties be set at 25% for the 12 month period, as detailed in table 1.

2.      The level of discount for former class C exempt properties be set at 100% for the first month and 25% for the remaining 5 months, as detailed in table  ...  view the full minutes text for item 10

Report of the Cabinet Member Finance

RESOLVED that Council be recommended to

1. Set the level of discount for former class A exempt properties at 25% for the 12 month period, as detailed in table 1
2. Set the level of discount for former class C exempt properties at 100% for the first month and 25% for the remaining 5 months, as detailed in table 1.
3. Confirm the level of discount for long term empty properties should remain at zero
4. Set the level of discount on properties classed as second homes at zero

The Cabinet Member Finance introduced the report and explained that councils now had a discretionary power to set local discount levels on certain categories of empty properties that had previously been subject to exemptions from council tax for a limited period of time. The level of charge on properties classed as second homes could now be increased from 90 % to 100 %. Finance and revenue officers from all Gloucestershire districts had been working together to agree a countywide approach to all of the changes. He emphasised however that caution had been taken not to abolish a certain number of exemptions in the current arrangements, e.g. where a dwelling is left unoccupied by a person receiving care in hospital, so as not to impose unreasonable charges.

The Cabient Member Finance also said that changing the exemptions in Class A to C was a sensible way forward and would generate a degree of extra income for the council but would also bring back empty properties into use.

He also highlighted that there would be an additional recommendation to Council (as circulated) confirming that the level of discount for long term empty properties should remain at zero.

The Leader of the Council added that this had been a very useful discussion to have at a countywide level.

RESOLVED that Council be recommended to

1. Set the level of discount for former class A exempt properties at 25% for the 12 month period, as detailed in table 1
2. Set the level of discount for former class C exempt properties at 100% for the first month and 25% for the remaining 5 months, as detailed in table 1.
3. Confirm the level of discount for long term empty properties should remain at zero
4. Set the level of discount on properties classed as second homes at zero