Agenda item

Council Tax Discounts & Premiums Determination 2024-25

Executive Summary

 

This report sets out the proposed level of council tax discounts which shall apply to classes of dwelling for the financial year 2024-25.

 

Options considered.

 

The recommendations enable the Council to take action, as a result of the reforms included in the Local Government Finance Act 2012 (as amended), to encourage homeowners to bring their homes back into use and generate council tax income.

 

Consultation(s)

The legislation provides local authorities with the power to determine the level of council tax discount in relation to certain classes of property. The Council must approve its determinations for each financial year. The calculation of the tax base for 2024/25 will be made on the assumption that the determinations recommended below will apply. 

 

In accordance with the relevant legislation these determinations shall be published in at least one newspaper circulating in North Norfolk before the end of the period of 21 days beginning with the date of the determinations.

 

Recommendations

 

Recommend to Full Council that under Section 11A of the Local Government Finance Act 1992 and in accordance with the provisions of the Local Government Finance Act 2012 and other enabling powers that:

 

1)    The discounts for the year 2024-25 and beyond are set at the levels indicated in the table at paragraph 3.1.

 

2)    To continue to award a local discount of 100% in 2024-25 for eligible cases of hardship under Section 13A of the Local Government Finance Act 1992 (as amended). See the associated policy in Appendix B.

 

3)    That an exception to the levy charges may continue to be made by the Revenues Manager in the circumstances laid out in section 3.2 of this report.

 

4)    The premiums for the year 2024-25 and beyond are set at the levels indicated in the table at paragraph 4.2.

 

5)    To continue to award a local discount of 100% in 2024-25 for eligible cases of care leavers under Section 13A of the Local Government Finance Act 1992 (as amended).

 

6)    Those dwellings that are specifically identified under regulation 6 of the Council Tax (Prescribed Classes of Dwellings) (England) Regulations 2003 will retain the 50% discount as set out in paragraph 2.1 of this report.

 

7)    Those dwellings described or geographically defined at Appendix A which in the reasonable opinion of the Revenues Manager are judged not to be structurally capable of occupation all year round and were built before the restrictions of seasonal usage were introduced by the Town and Country Planning Act 1947, will be entitled to a 35% discount.

 

8)    The long-term empty-property premium of 100% is brought forward to increase from 12 months rather than 24 months from 1 April 2025, subject to the necessary legislation.

 

9)    A new second homes premium of 100% as detailed in paragraph 4.3 is applied from 1 April 2025, subject to the necessary legislation.

 

Reasons for recommendations

 

To set appropriate council tax discounts and premiums which will apply in 2024-25 and to raise council tax revenue.

 

Background papers

 

Local Authorities are required to approve their Council Tax discount determinations each year. The legislation provides local authorities with powers to make changes to the level of council tax discount in relation to certain types of properties.

 

 

 

 

Wards affected

All

Cabinet member(s)

Cllr Lucy Shires

Contact Officer

Sean Knight

Revenues Manger

Sean.Knight@north-norfolk.gov.uk

 

Links to key documents:

 

Corporate Plan:          

Strong Responsible & Accountable Council.

Medium Term Financial Strategy (MTFS)                                

The discounts and premiums approved by Members will be used for calculating the tax base used in the budget setting and is part of the Medium-Term Finance Strategy.

 

Council Policies & Strategies

Budget Setting & Medium-Term Finance Strategy.

 

Corporate Governance:

 

Is this a key decision 

 Yes

Has the public interest test been applied

Yes

Details of any previous decision(s) on this matter

October 2022,Council Tax Discounts & Premiums Determination 2023-24.

 

1.           Purpose of the report

 

Decision:

Decision

RESOLVED

 

To recommend to Full Council that under Section 11A of the Local Government Finance Act 1992 and in accordance with the provisions of the Local Government Finance Act 2012 and other enabling powers that:

 

1)    The discounts for the year 2024-25 and beyond are set at the levels indicated in the table at paragraph 3.1.

 

2)    To continue to award a local discount of 100% in 2024-25 for eligible cases of hardship under Section 13A of the Local Government Finance Act 1992 (as amended). See the associated policy in Appendix B.

 

3)    That an exception to the levy charges may continue to be made by the Revenues Manager in the circumstances laid out in section 3.2 of this report.

 

4)    The premiums for the year 2024-25 and beyond are set at the levels indicated in the table at paragraph 4.2.

 

5)    To continue to award a local discount of 100% in 2024-25 for eligible cases of care leavers under Section 13A of the Local Government Finance Act 1992 (as amended).

 

6)    Those dwellings that are specifically identified under regulation 6 of the Council Tax (Prescribed Classes of Dwellings) (England) Regulations 2003 will retain the 50% discount as set out in paragraph 2.1 of this report.

 

7)    Those dwellings described or geographically defined at Appendix A which in the reasonable opinion of the Revenues Manager are judged not to be structurally capable of occupation all year round and were built before the restrictions of seasonal usage were introduced by the Town and Country Planning Act 1947, will be entitled to a 35% discount.

 

8)    The long-term empty-property premium of 100% is brought forward to increase from 12 months rather than 24 months from 1 April 2025, subject to the necessary legislation.

 

9)    A new second homes premium of 100% as detailed in paragraph 4.3 is applied from 1 April 2025, subject to the necessary legislation.

 

Reason for the recommendation:

 

To set appropriate council tax discounts and premiums which will apply in 2024-25 and to raise council tax revenue.

 

Minutes:

Cllr L Shires, Portfolio Holder for Finance and Assets introduced this item. She highlighted recommendation 9 which referred to the introduction of a second homes premium of 100% from April 2025. She added that there would be discussions with Norfolk County Council on how more of that additional income could be returned to North Norfolk to benefit its residents. She then spoke about the care leavers discount (recommendation 5) which was funded by the County Council.

 

Cllr Fredericks welcomed the 100% levy on second homes and even though a years’ notice was required before this could be implemented, she felt that more could be done to bring the date of introduction forward. She then spoke about empty homes and said that the Council’s Empty Homes Officer had brought 92 properties back into use between May and October this year.

 

The Director of Finance confirmed that the legislation relating to second homes had now been passed and the report would be updated to reflect this prior to going to Full Council for approval.

 

The Chairman asked whether the Care leavers discount was time limited. Cllr Shires replied that it appeared to be a County Council decision and further conversations would be needed to clarify the situation.

 

It was proposed by Cllr L Shires, seconded by Cllr T Adams and

 

RESOLVED

 

To recommend to Full Council that under Section 11A of the Local Government Finance Act 1992 and in accordance with the provisions of the Local Government Finance Act 2012 and other enabling powers that:

 

1)    The discounts for the year 2024-25 and beyond are set at the levels indicated in the table at paragraph 3.1.

 

2)    To continue to award a local discount of 100% in 2024-25 for eligible cases of hardship under Section 13A of the Local Government Finance Act 1992 (as amended). See the associated policy in Appendix B.

 

3)    That an exception to the levy charges may continue to be made by the Revenues Manager in the circumstances laid out in section 3.2 of this report.

 

4)    The premiums for the year 2024-25 and beyond are set at the levels indicated in the table at paragraph 4.2.

 

5)    To continue to award a local discount of 100% in 2024-25 for eligible cases of care leavers under Section 13A of the Local Government Finance Act 1992 (as amended).

 

6)    Those dwellings that are specifically identified under regulation 6 of the Council Tax (Prescribed Classes of Dwellings) (England) Regulations 2003 will retain the 50% discount as set out in paragraph 2.1 of this report.

 

7)    Those dwellings described or geographically defined at Appendix A which in the reasonable opinion of the Revenues Manager are judged not to be structurally capable of occupation all year round and were built before the restrictions of seasonal usage were introduced by the Town and Country Planning Act 1947, will be entitled to a 35% discount.

 

8)    The long-term empty-property premium of 100% is brought forward to increase from 12 months rather than 24 months from 1 April 2025, subject to the necessary legislation.

 

9)    A new second homes premium of 100% as detailed in paragraph 4.3 is applied from 1 April 2025, subject to the necessary legislation.

 

Reason for the recommendation:

 

To set appropriate council tax discounts and premiums which will apply in 2024-25 and to raise council tax revenue.

 

Supporting documents: