Agenda item

Council Tax Discounts & Premiums Determination 2026-27

Executive Summary

This report sets out the proposed level of council tax discounts which shall apply to classes of dwelling for the financial year 2026-27.

Options considered.

The recommendations take advantage of the options from the reforms included in the Local Government Finance Act 2012 as amended to incentive homes back into use and generate council tax income.

Consultation(s)

The legislation provides local authorities with the power to make changes to the level of council tax discount in relation to classes of property. The Council has to approve its determinations for each financial year. The calculation of the tax base for 2026-27 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.  [Awaiting legal advice whether the Council can publish on its website instead]

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 2026-27 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 2026-27 for eligible cases of hardship under Section 13A of the Local Government Finance Act 1992 (as amended) and that the Revenues Manager has delegated authority to make Discretionary Reductions under the Hardship Policy up to the value of £4k as indicated in the associated policy in Appendix B.

3)     That an exception to the empty property levy charges may continue to be made by the Revenues Manager in the circumstances laid out in section 4.2 of this report.

4)     The long-term empty-property premiums for the year 2026-27 (subject to the empty premium exceptions shown in Appendix C) are set at the levels indicated in the table at paragraph 4.2

5)     To continue to award a local discount of 100% in 2026-27 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)     A new second homes premium of 100% as detailed in paragraph 4.3 (subject to the second home premium exceptions shown in Appendix C) continues to be applied in 2026-27.

Reasons for recommendations

To set appropriate council tax discounts and premiums which will apply in 2026-27 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 and have premiums in relation to certain types of properties.