Issue - meetings

Council tax discount

Meeting: 12/06/2012 - Corporate Overview and Scrutiny Committee (Item 11)

11 Council Tax Discount Policy pdf icon PDF 93 KB

To consider a report of the Director of Finance and Business Services.  

Additional documents:

Minutes:

Note Councillor P Findlow declared a personal and prejudicial interest in respect of this matter and vacated the Chair and left the room during the consideration of this matter.

 

Councillor G Merry (Vice - Chairman) in the Chair.

 

The Committee considered a report of the Director of Finance and Business Services advising the Committee on the current arrangements for Council Tax discounts in relation to empty properties and second homes.

 

The rules in relation to Council Tax discounts on long term empty properties and second homes were first changed for 2006/2007 to enable councils to move away from the compulsory 50% discount to local arrangements (within certain restrictions).

 

Gradually all councils in Cheshire had moved to a revised discount of 25% for both categories to match the single person discount. For the financial year  2011/2012, Cheshire East Council had agreed a further change to:

 

·        Reduce discount on long term empties to 0%.

 

·        Reduce the discount on second homes to 10%.

 

These changes had raised an additional £2.1m of income.

 

In October 2011, the Government had issued a consultation on technical reforms to Council Tax which included scope for further changes to Council Tax discounts from April 2013. This has been followed by a response on 28th May 2012.

The key issues accepted by the Government were that Local Authorities should be allowed to charge 100% for second homes and to potentially charge more where a property was empty.

 

RESOLVED

 

(a)             That the proposal to reduce discount levels on long term empty properties and second homes to maximise income be supported by the Committee but the Director of Finance and Business Services be requested to consider appropriate exemptions for people being admitted into care, and consider setting a sensible minimum charge e.g. £50 to ensure efficient billing procedures.

 

(b)             That the Director of Finance and Business Services be requested to fully involve Members of the Council in the development of new proposals.

(c )             That Director of Finance and Business Services be requested to provide a breakdown of the 12,000 exemptions outlined in the report by category e.g. landlords etc to provide Members with an understanding of who will be affected by any change in policy, and the details  be circulated to the committee outside of the meeting.