Issue - meetings

To consider a report by the Head of Customer Services on the Government’s proposals to reform Council Tax.

Noted the contents of a report by the Head of Customer Services summarising the Government's proposals to reform Council Tax with effect from 1st April 2013 and the consequential implications to the District Council. Subject to the enactment of the relevant legislation and in order to prepare financial forecasts, agreed in principle

(i)  that unoccupied and unfurnished (Class C) properties be granted a 100% discount for one month and then 0% thereafter;

(ii)  that second home discounts be reduced to 0%;

(iii)  that uninhabitable properties (Class A) be granted 100% discount for a maximum of twelve months;

(iv)  that empty homes premium be levied after two years at 50% in addition to the 100% charge currently made;

(v)  that monthly instalments continue to be due on the 15th day of each month (extended to those who request 12 monthly instalments) but Managers be permitted to include an additional later instalment date purely as an incentive for those opting to pay by direct debit; and

Supported the publication of a Cambridgeshire Council Tax booklet and the Council's continued involvement in this area of joint working approved.

A report by the Head of Customer Services (a copy of which is appended in the Minute Book) was submitted summarising the Government's proposals to reform Council Tax with effect from 1st April 2013 and the consequential implications to the District Council.  The report had been considered also by the Overview and Scrutiny Panel (Economic Well-Being) whose comments were relayed to the Cabinet.

Executive Councillors were advised that the Government intends to give local authorities the discretion to set the level and period of charge for unoccupied and unfurnished domestic properties, second homes and uninhabitable properties.  Furthermore, a billing authority would have the option to levy an empty premium on properties left vacant for over two years.

Having noted the potential income which could be generated from the reforms and referring to the likely reduction in revenue from the Localisation of Council Tax Rebates, the Cabinet

RESOLVED

  (a)  that the contents of the report now submitted be noted;

  (b)  that, subject to the enactment of the relevant legislation and in order to prepare financial forecasts and a draft budget, the following changes to Council Tax Policy be agreed in principle:-

  (i)  that unoccupied and unfurnished (Class C) properties be granted a 100% discount for one month and then 0% thereafter;

  (ii)  that second home discounts be reduced to 0%;

  (iii)  that uninhabitable properties (Class A) be granted 100% discount for a maximum of twelve months (no change);

  (iv)  that empty homes premium be levied after two years at 50% in addition to the 100% charge currently made; and

  (v)  that monthly instalments continue to be due on the 15th day of each month (extended to those who request 12 monthly instalments) but Managers be permitted to include an additional later instalment date purely as an incentive for those opting to pay by direct debit; and

  (c)  that the publication of a Cambridgeshire Council Tax booklet be supported and the Council's continued involvement in this area of joint working approved.

To consider a report by the Head of Customer Services on the Government’s proposals to reform Council Tax.

(Members of the Overview & Scrutiny Panel (Social Well-Being) have been invited to attend for the discussion on this item).

(Councillor J A Gray, Executive Councillor for Resources, was in attendance for this item).

With the assistance of a report by the Head of Customer Services (a copy of which is appended in the Minute Book) the Panel was acquainted with details of Government proposals to reform Council Tax, which would come into effect in April 2013. The proposals would provide Billing Authorities with a number of discretionary powers, which would allow the Council to make a number of changes to the existing Council Tax discounts / exemptions.

Members’ attention was drawn to a series of proposals for changes to Council Tax that would enable the Council to collect an additional £724k per annum in Council Tax from 2013. This sum would be used to reduce the impact on the Council of the changes to Council Tax support. However, because the legislation had not yet been passed, the Cabinet would only be able to approve the proposals in principle at that stage. Those affected included those who had inherited property and private landlords.

In considering the contents of the report, Members discussed the social consequences of the proposals and concluded that they would result in housing being occupied more quickly. This view was endorsed by the Chairman of the Social Well-Being Panel.

With regard to the proposal to reduce the exemption for unoccupied and substantially unfurnished properties from six months to one month, the Panel was assured that testing had been undertaken to maximise the cost-effectiveness of the change. In terms of the proposals for Uninhabitable properties (Class A), Members queried whether it would be viable to reduce the discount period to 6 months but officers explained that the Government would only permit a variation to the size of the discount in this category.

RESOLVED

that the Cabinet be recommended to express their support in principle for the recommendations set out in paragraph 8 of the report now submitted.