Agenda item

LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW

(Papers relied on to write the report, which do not contain exempt information and which are not published elsewhere)

Contact Officer, telephone number and email:

Alison Chubbock, 07967 325037, alison.chubbock@north-norfolk.gov.uk

Sean Knight, 01263 516347, sean.knight@north-norfolk.gov.uk

Cllr T Adams – Council Leader introduced the report and informed Members that hardship and care leavers discounts would be retained, and the Committee were aware of the planned premiums that would be placed on second homes. He added that a discount would be reintroduced for empty properties in need of major refurbishment, which had been impacted by labour shortages, which was expected to be a relatively low number. The RM noted that the Levelling-up and Regeneration Bill referred to within the report required a year’s notice to implement changes, as such Council Tax premiums would be introduced in 2024, subject to any further delays.

Questions and Discussion

       i.          The Chairman noted that two items within the report were focused on Council Tax premiums, which should be reflected in the report title, alongside an acknowledgement that any changes to second homes Council Tax would not be implemented until 2024. The RM agreed with comments on the title, and noted that whilst they did fall within discounts legislation, he accepted that it would be more transparent to refer to the proposed changes as premiums. He added that proposed changes for second homes did require one years notice, hence the 2024 implementation.

      ii.          Cllr V Holliday noted that she had received a representation from a local resident who felt it was unfair that second home owners should pay a differential Council Tax rate as opposed to the business rates payments and associated rates relief by owners of holiday rental accommodation. She added that they had also suggested that a similar minimum occupancy requirement should be implemented for second home owners. Cllr V Holliday then asked whether long-term rental owners would be liable to pay the increased Council Tax charges, which could dissuade owners from long-term lets. The RM replied that there was no existing minimum occupancy requirement for second homes, whereas holiday lets had to be available to let for 140 days or more per year. He added that the decision to charge Council Tax or non-domestic business rates was a decision made by the valuation office as part of HMRC. It was noted that the Government would be reviewing holiday let usage in 2023, with a requirement for these properties to be used for 140 days in the year, and it was therefore expected that some owners may seek to change categorisation of their property. The RM suggested that it was likely that many unused properties would switch to paying Council Tax in advance of the legislative changes.

     iii.          Cllr L Withington suggested that properties let on a long-term bases were likely to have Council Tax charges paid by tenants as their primary residence, rather than by the property owners. She added that increasing Council Tax charges may therefore encourage second home owners to rent them on long-term letting contracts to avoid the Council Tax premium. It was confirmed that tenants would only pay the normal Council Tax charge as the property would be considered their primary residence.

    iv.          The recommendations were proposed by Cllr P Heinrich and seconded by Cllr L Withington.

RESOLVED

1.     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 2023-24 and beyond are set at the levels indicated in the table at paragraph 2.1.

2.     The existing 100% council tax hardship discount and associated policy (see Appendix B) remains in place for 2023-24.

3.     That an exception to the levy charges may be made by the Revenues Manager in the circumstances laid out in section 2.2 of this report.

4.     The premiums for the year 2023-24 and beyond are set at the levels indicated in the table at paragraph 2.3.

5.     A new second homes premium of 100% as detailed in paragraph 2.4 is applied from April 2024, subject to the necessary legislation.

6.     To continue to award a local discount Reasons for Recommendations: of 100% for eligible cases of care leavers under Section 13A of the Local Government Finance Act 1992 (as amended).

7.     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 1.2 of this report.

8.     Those dwellings described or geographically defined at Appendix A which in the reasonable opinion of the Head of Finance and Asset Management 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.

ACTIONS

1.     That officers consider amending the title of the report to include ‘and Premiums’, to more accurately reflect the contents.