Issue - meetings

To receive a report on the proposed technical changes to Council Tax Discounts and Exemptions.

The Director of Corporate Services and the Revenue Services Manager reported on the Government’s proposals to give billing authorities greater discretion over the reliefs from council tax available in respect of second homes and some empty properties along with other potential reforms of the council tax system. These changes would be introduced from 1 April 2013.

There were a wide range of options to be considered which were outlined in the report.

Arising from Members’ questions and comments, the following points were noted:

• It was difficult to predict what the effect of the options might be on private sector rentals.
• In response to the Government consultation, landlords had expressed the view that they did not want the exemption period for vacant homes removed with immediate effect.
• The Council could use its discretion regarding council tax liability e.g. when a person went into to hospital.
• When a property became vacant because someone died the property was exempt from council tax for six months after the granting of probate unless someone moved in.
• With regard to option 5.3: Replacing the exemption for vacant homes with a discount, it would be possible to have an exemption period followed by a discount but that this would be more complex.
• Other authorities were, in general, looking to remove discounts and reduce exemptions.

The Executive Member for Culture, Corporate Services and Public Protection stated that he would welcome suggestions that the Commission wished to make regarding the various options.

Although individual Members made a variety of suggestions, there was general agreement that maximising income in respect of second homes and empty properties was preferable to cutting services in order to bridge the anticipated funding gap.

The Borough Treasurer explained that pooling of Business Rates with other Berkshire Authorities was being explored and, if it was advantageous, the Executive would be asked to approve it.

The Commission thanked the Officers for their report.