Issue - meetings

Cabinet is asked to support the commissioning of a public consultation on whether the premium levels for long term empty properties and second homes should be varied from April 2025

Councillor Johnson introduced the report and explained Local authorities in Wales had discretionary powers to charge a council tax premium of up to 300% above the standard charge for properties on long term empty properties and second homes.

The Council first introduced a premium scheme from April 2017 and established a premium rate of 50% on both long-term empty properties and second homes.

A public consultation was last undertaken in 2021 and from April 2023 the Council increased the premium rates to 75% for long term empty properties and 100% for second homes.

In line with the recommendations of Council at the meeting held on 20 February 2024, Cabinet committed to bring forward a review of the premium rates by

commissioning a further public consultation.

The report therefore set out the key considerations and timelines if Cabinet wanted to undertake a further consultation with a view to Council potentially varying the premium rates from April 2025.

The Revenues and Procurement Manager added that when considering any changes to the council tax premium scheme or the levels being charged, the Council must have due regard to the Welsh Government guidance which said:

“Any decision to vary or revoke a determination to apply a premium must

be made before the beginning of the financial year to which it applies.

Local authorities are also strongly encouraged to consult before making a

determination to increase a premium to a level above 100% and to do so

at least 6 months before the beginning of the financial year to which the

proposed premium increase relates. This will enable the premium to be

taken into account when setting council tax levels for the forthcoming year

and allow taxpayers sufficient time to consider the impact of a higher

premium on their own personal financial circumstances and make choices

regarding their property”.

The Chief Officer (Governance) added that to ensure the Council followed Welsh Government guidance, the timelines and key milestones for the council tax premium review were outlined in the report.

RESOLVED:

That the commissioning of a public consultation on whether the premium levels for long term empty properties and second homes be varied from April 2025 be supported.