Agenda item

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 1.

3.      The level of discount for long term empty properties remain at zero, as detailed in table 1.

4.      The level of discount on properties classed as second homes be set at zero, as detailed in table 1.