Decision details

Matter for Decision

i.                The purpose of this report is to seek approval relating to Council Tax premiums - as provided within the Levelling Up and Regeneration Act – which received Royal assent on 26th October 2023, and is due to become effective from 1st April 2024.

ii.                The Act provides additional discretionary powers for Council Tax premium options in respect of Long-Term Empty property and Second Homes. Those options enable the Council to impose additional Council Tax premiums on Long Term Empty property and Second Homes with effect from 1 April 2025.

iii.             Government has confirmed that billing authorities that wish to adopt any changes are required to make a resolution confirming their requirements at least 12 months prior to the financial year in which the changes come into effect; meaning the earliest these changes can be adopted is the 1 April 2024 with new premiums being applied from 1 April 2025. This ‘notice’ period provides that a minimum of 12 months notice must be given before the financial year from which the changes to a premium can be applied.

Decision of the Executive Councillor

i.                Support in principle that the following additional Council Tax premiums be applied from 1 April 2025 or as soon as possible thereafter, subject to the required legislation or further guidance being in place:

· 100% premium for properties which have been empty and unfurnished for a period of between 1 (previously 2) and 5 years. This brings forward the charging of an Empty Homes premium so that it would be charged after 1 year of being empty instead of the current 2 years, and

· A premium of up to 100% for second homes subject to any exception being applicable.

ii.                Delegate authority to the Chief Finance Officer (s151 officer) to implement the introduction of these additional premiums taking into consideration any future guidance and best practice issued by Government.

Reason for the Decision

As set out in the Officer’s report.

Any Alternative Options Considered and Rejected

Not applicable.

Scrutiny Considerations

The Local Taxation Manager said the following in response to Members questions:

i.                Expect to be able to manage the project with current resources within the Council Tax team.

ii.               Premiums would not come into effect until 2025.

iii.             There would be an element of data cleansing to get the correct information.

iv.             There could be challenges and appeals. There was an appeals process though the valuation tribunal.

v.              Were proposing a 100% charge, not up to 100%.

vi.             Only applies to people with a second home within Cambridge.

vii.           Only allowable exemption was if you were required to live elsewhere for work.

viii.         There was an inspection process in place for empty properties.

ix.             Normal rental properties were excluded, as were student accommodation.

Members proposed amendment to wording of Recommendation 2.1 to: Up to 100% or maximum allowable in regulation.

The Committee unanimously approved the amendment.

The Committee unanimously endorsed the recommendations.

The Executive Councillor approved the recommendations.

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted)

No conflicts of interest were declared by the Executive Councillor.