Issue - meetings

Report of the Head of Finance, Revenues and Benefits

The Committee received the report as set out on pages 89-92 of the agenda, which asked it to approve a number of changes to discretionary Council Tax discounts.

The Head of Finance, Revenues and Benefits provided the Committee with a brief summary of the report. The Committee in particular welcomed recommendations C and D, which proposed increasing the premium on properties standing empty for more than two years from 50% to 100%, and allowing a 100% discount to care leavers from the age of 18 to 25.

The Committee noted that recommendation A, which proposed the discontinuation of Council Tax discount on empty properties for the first 28 days, would require the Council to pay Council Tax on all void properties where previously they were subject to a 28 exemption. The Committee therefore sought assurances that capacity was sufficient to manage the required reduction in void turnaround times in order to bring properties back into use quicker. Concern was also raised that in some cases where Council properties required more substantial alterations to bring them back up to an acceptable living standard, either substantial costs might accumulate whilst these works took place, or some works might be put back to allow such properties to be quickly re-let. The Director of Finance and Transformation confirmed that resources would need to be carefully monitored in order to sensibly balance these considerations. The Head of Finance, Revenues and Benefits also advised the Committee that administering the current 28 day discount was currently a time consuming process, therefore its discontinuation would be a welcome simplification.

A Member of the Committee requested that once the proposed changes came into effect from 01 April 2019, Key Performance Indicators should be introduced, firstly to monitor the time taken to bring void properties back into operation and secondly to monitor the total additional costs incurred on the Housing Revenue Account (HRA) once the current 28 day discount is discontinued.

It was moved by the Chair, seconded by the Vice-Chair and

UNANIMOUSLY RESOLVED THAT:

(i)       The Council Tax discount currently allowed for all empty properties for the first 28 days be discontinued from 01 April 2019;

(ii)     The Council Tax discount currently allowed for empty properties undergoing renovation for a maximum of 12 months be discontinued from 01 April 2019;

(iii)   The additional premium of 50% currently charged to properties which have been empty for more than 2 years be increased to 100% from 01 April 2019; and

(iv)    A new 100% discount be allowed to care leavers from the age of 18 to 25 who are resident in the Borough and solely or jointly liable for Council Tax.