Issue - meetings

Welsh Government Consultation on Council Tax Premiums for second homes and long term empty property

Meeting: 20/05/2015 - Community and Enterprise Overview & Scrutiny Committee (Item 6)

6 Welsh Government Consultation on Council Tax Premiums for second homes and long term empty property pdf icon PDF 71 KB

Additional documents:

Decision:

That the Committee supports the proposals to exempt certain properties from the Council Tax premium, as set out in the report and endorsed by Cabinet at its meeting on 19 May 2015.

Minutes:

The Committee received a report detailing Welsh Government (WG) consultations seeking views on the policy of giving Local Authorities discretionary powers regarding a Council Tax premium that could be applied to second homes and long-term empty properties.  The Chief Officer (Community & Enterprise) explained that the report had been submitted to the first available meeting of this Committee in line with its revised Terms of Reference.  Due to the timing of this change, Cabinet had already endorsed the responses to the consultation earlier in the week, however the Committee was assured that its views would be shared with the Deputy Leader to consider including in the Council’s response to WG by 13 June 2015.

 

The Revenues Manager summarised the background to the report relating to legislation allowing local authorities to charge a Council Tax premium at a level of up to 100% above the normal level on long-term empty homes and second homes in their areas.  The consultation by WG sought feedback on possible exemptions from the premium, as set out in the report, with appropriate time limits set as a safeguarding measure.  As a future consideration, the Revenues Manager explained that any decision made by the Council to introduce a premium of up to an additional 100% would need to allow for a minimum of 12 months before the implementation of that policy.

 

Councillor Rosetta Dolphin felt it was unfair for some residents to be potentially charged double the amount of Council Tax on their empty properties.  The Chief Officer said that she understood the concerns raised but that maximising income to the Council would minimise the need to seek savings.  Whilst there was empathy with many of the households potentially affected, she pointed out that there were many more cases where empty properties were the subject of wider concerns in the community.

 

Councillor Dolphin referred to the proposed delayed premium charging applicable to empty and substantially unfurnished properties for 12 months and said that this could evaded by the property being marketed for sale at an unrealistic price to delay the premium.  The Revenues Manager advised that safeguards would be put in place to identify and monitor such activity.  On another matter, he assured Members that owners of empty properties who were living in residential care homes would not be subject to the premium as they were already exempt.

 

The Housing Regeneration & Strategy Manager said that increasing housing supply was a priority for WG who had made available specific funding to help return long-term vacant properties back into use.  In addition, the Council’s housing company, North East Wales Homes, was able to work closely to support homeowners to make their empty properties available to let.

 

Councillor Dave Mackie referred to the difficulties in selling properties and felt that another mechanism was needed to deal with ‘problem’ properties that remained vacant over the longer term.  Officers explained that the proposed additional Council Tax premium was one of a range of tools available to the Council and provided information on the  ...  view the full minutes text for item 6