The report of the City Treasurer is enclosed.

A report by the City Treasurer explained that in November 2018 the Government had introduced powers for councils to charge increased Council Tax Premiums for long term empty properties that have been unoccupied and unfurnished for over two years. These powers extended the 50% premium that had been introduced in April 2013 (Minute Exe/13/006).

Under the new powers the council had the discretion to apply increased a Council Tax premium on unoccupied and unfurnished properties as follows:

·         unoccupied for more than two years - 100% premium from 1 April 2019 (so the owner would pay 200% of the normal Council Tax);

·         unoccupied for more than five years - 200% from 1 April 2020 (so the owner would pay 300% of the normal Council Tax);

·         unoccupied for more than 10 years - 300% from 1 April 2021 (so the owner would pay 400% of the normal Council Tax).

Exemptions to these increased charges included homes unoccupied due to the occupant living in armed forces accommodation for job-related purposes and annexes being used as part of the main property.

The total potential increase in revenue from these changes was £575,500, subject to a number of factors and assumptions. However, it was to be hoped that these change would see some of the empty properties being brought back into use so that potential extra income was unlikely to be achieved.

The report also proposed other changes to long-standing Council Tax discounts that had been granted by the Council:

(a)        the removal of the existing 100% Council Tax discount that is awarded to unoccupied and unfurnished properties for up to a month, meaning that 100% of the Council Tax due would be charged for any unoccupied and unfurnished property not meeting the requirements of the statutory exemption class for unoccupied properties; and

(b)        the removal the existing 50% Council Tax discount awarded for up to one year when a property was undergoing major repairs or structural alterations.

It was noted that a recent meeting the Resources and Governance Scrutiny Committee had also considered this report and had endorsed its recommendations (Minute RGSC/18/71).

It was proposed and agreed that there be a period of public consultation on these changes, with the outcome of that consultation reported to a meeting in 2019.

Decisions

1.         To approve the proposals contained in the report and agree that there be a formal four week consultation, commencing in December 2018.

2.         To note that the outcome of the consultation will be reported in 2019.