Agenda item

Council tax Discounts & Premiums Determination 2024-2025

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

 

To support the Cabinet resolution 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 2024.

 

9)    A new second homes premium of 100% as detailed in paragraph 4.3 is applied from 1 April 2025.

 

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.

 

1.1           Properties that are classed as Long-Term Empty (those that have not been occupied for a period of 24 months) can be charged a premium on their Council Tax, which is currently 100% of the charge.

 

1.2           The Council also has powers under Section 13A of the Local Government Finance Act 1992 (as amended) to introduce discounts to particular taxpayers.

 

 

 

 

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.

 

Minutes:

Cllr L Shires, Portfolio Holder for Finance & Assets, introduced this item. She drew members’ attention to recommendation 5, which related to care leavers and the cost of which was fully compensated by Norfolk County Council and recommendation 9, which set out the intention to introduce a second homes premium of 100% from 1 April 2025. The Revenues Manager referred to Recommendation 8 which allowed the long-term empty property premium of 100%  to be brought forward to increase from 12 months rather than 24 months from 1 April 2024. He said that this would bring in additional income to the Council of approximately £68K and he added that it did seem to be encouraging people to bring empty homes back into use. 

 

The Chairman invited members to speak :

 

i.        Cllr V Holliday referred to the second home premium and said that she thought that the income would have been higher than that forecast. She also asked if it would be ring-fenced as several of her constituents had sought assurances regarding this. The Chief Executive replied that that there was an anticipated £550K return to NNDC as a share of the collected council tax, however, the overall figure that went to the County Council and the Police & Crime Commissioner was significantly higher. He said that it was the wish of the Leader and the Portfolio Holder for Finance & Assets to continue to press for more money to be returned to NNDC and then ring-fenced for future social housing provision.

ii.         

The Revenues Manager said that there were currently 4,764 second homes in North Norfolk and the gross charge for those properties currently was over £9.3m and this could potentially be doubled once the charge came into effect. However, he cautioned that the details of the Levelling Up Bill had not been shared yet and more accurate estimates could be provided once this was the case.

 

It was proposed by Cllr J Boyle, seconded by Cllr R Macdonald and

 

RESOLVED to support the following recommendations 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 2024.

 

9.     A new second homes premium of 100% as detailed in paragraph 4.3 is applied from 1 April 2025

 

Supporting documents: