Agenda item

The Executive Councillor for Resident Services and Corporate Performance, Councillor S W Ferguson to present a report regarding Council Tax premiums.

(The report was considered by the Overview and Scrutiny Panel (Environment, Communities and Partnerships) and the Cabinet at their meetings in November 2024. The Cabinet endorsed the recommendations).

See Minute No. 24/48 – Members’ Interests.

At 9:08pm, Councillors S Corney, L Davenport-Ray, I Taylor, S Taylor and T D Sanderson vacated the room for this item.

Consideration was given to a report by the Revenues and Benefits Manager (a copy of which is appended in the Minute Book) proposing the implementation of additional Council Tax Premiums in relation to unoccupied properties across the District.

In introducing the report, the Executive Councillor for Resident Services and Corporate Performance reported upon the 2021 Census figures which had identified that there were 1.62 million vacant properties in England and Wales. Council was also advised that the number of long-term vacant homes had increase by 10% over the last 5 years which had led to a number of negative of consequences: including a reduced housing supply and increased local prices in the rental market. Neighbourhood decline had been seen in areas where there were large numbers of empty properties, with reduced community cohesion and empty properties becoming targets for vandalism, arson and squatting.

Having been reminded that the Local Government and Finance Act 1992 had previously provided the Authority with several measures to deal with unoccupied properties within the District, the Council were advised that the 2023 Levelling Up and Regeneration Act provided Council’s with new powers to introduce stiffer penalties. The Act enabled the Council to introduce a Council Tax Premium for empty and unfurnished homes after 1 year, rather than the current 2-year period and to also introduce a premium for those with second homes. Both premiums would be charged at 100%, coming into effect from April 2026.

The Council’s attention was also drawn to proposals to adopt a policy setting out exceptions to the premiums in line with any regulations or guidance issued by Central Government which it was proposed to delegate to the Section 151 Officer in consultation with the Executive Councillor for Resident Services and Corporate Performance. Following comments made by the Overview and Scrutiny Panel (Environment, Communities and Partnerships) regarding the need to act with compassion in some cases when determining exemption and discounts, the Executive Councillor indicated that he would be accepting the offer from them to help him with the review of this activity.

In reviewing the contents of the report, the Leader of the Opposition Group emphasised the importance of evaluating the impact of the policy to ensure it was both effective and equitable. Whilst any proposals to incentivise the use of empty homes could have a significant positive impact for housing availability and affordability within the District, it’s success would hinge on its thoughtful implementation, its robust monitoring and an approach which considered local context. He also urged the Executive Councillor not to limit any exceptions to the regulations or guidelines issued by Central Government, but to give due consideration to the local factors or specific challenges which were unique to Huntingdonshire. Having welcomed the inclusion of an additional recommendation, requiring a report back to Members 12 months following its implementation, Councillor Martin also suggested that this should include a breakdown of any exemptions or exceptions to allow monitoring of these to also take place.

Councillor P Hodgson-Jones expressed his concerns that in bringing forward these proposals the District Council were penalising individuals for owning second properties, as opposed to those who rent second properties to avoid having to pay a premium upon it. He sought further clarification on that aspect of the proposal.

Having commented on the housing crisis affecting Britain and having made reference to the significant increase in average rent costs over the past 3 years, together with the increase in the numbers of long-term empty properties, Councillor N Hunt welcomed the steps being taken by the Joint Administration. He also welcomed the continued inclusion of the recommendation that a report would be presented to Overview and Scrutiny after a twelve-month period to enable the Panel to review the impact of the Policy and consider whether any further improvements could be put in place.

In drawing the discussion to a close and in response to the comments which had been made, the Executive Councillor for Resident and Corporate Services undertook to commit (with input from Overview and Scrutiny) to treat exemptions fairly and compassionately to address the concerns which had been raised. He also reiterated that it had been decided to introduce both premiums in April 2026 to avoid any confusion for residents.

Whereupon, it was

RESOLVED

a)  that the existing empty homes premium be amended to charge the additional 100% Council Tax premium after one year of the conditions being met, rather than the current two years, with effect from 1 April 2026;

b)  that the introduction of a second homes premium of 100% be approved with effect from 1st April 2026;

c)  that delegated authority be given to the Section 151 Officer in conjunction with the Executive Councillor for Resident Services and Corporate Performance, to adopt a policy setting out exceptions to the premiums in line with any regulations or guidance issued by Central Governance and to make subsequent updates to the policy as and when required; and

d)  that an update on the number of properties falling under the scheme be reported back to the democratic cycle once the new policy has been in place for 12 months.

At 9:28pm, Councillors S Corney, L Davenport-Ray, I Taylor, S Taylor and T D Sanderson took their seats at the meeting.