Agenda item

Recommendations: The Executive are asked to recommend that Full Council approve:

i.    Policies for the North Yorkshire Council’s Council Tax discounts from 1 April 2023, as detailed in the report;

ii.   Policies for the North Yorkshire Council’s Council Tax premiums from 1 April 2023, as detailed in the report;

iii.  that the additional revenue generated from the changes to premiums and discounts in 2023/24 be ring-fenced to support the Council Tax Reduction scheme;

iv.  that the following additional Council Tax premiums be applied from 1 April 2024, subject to the required legislation being in place:

·       100% premium for properties which have been empty and unfurnished for more than 12 months;

·       100% premium for second homes 

Considered – Report of the Corporate Director – Strategic Resources

County Councillor Gareth Dadd welcomed Kerry Metcalfe and Sherri Williamson from Scarborough Borough Council to the meeting to present the report. On Council Tax discounts and premiums, he explained the aim was to minimise the discounts on offer, so that at an Executive meeting at a later date when the Council Tax Reduction policy is considered by the Executive, the discounts accumulated through this policy can be applied to those who really need it.

On the second homes premium detailed in the report, the Deputy Leader asked that a decision on this (Report recommendation 9.1 (iv)) be deferred until further information and evidence is received of what the Government is planning to do in this area.

Kerry Metcalfe presented the report, but noted that the contents had been put together by all of the Revenues managers across the district and borough councils in North Yorkshire and all of the Section 151 officers have had input into the report and are in agreement with the proposals and recommendations.

As the council tax billing authority from 1 April 2023, the new North Yorkshire Council will need a policy for certain discretionary council tax discounts and premiums. Historically, this has been the responsibility of the district and borough councils in their role as billing authorities. Because each council has been able to set their own discretionary policy historically, not all of the policies are the same across the county. Therefore, a piece of work has been undertaken to try and align those policies and come up with proposals for the new North Yorkshire Council that can come into effect from 1 April 2023 following Local Government Reorganisation. If agreed by the Executive today, the policy would go on to the full County Council meeting later this month.

Setting the discounts and premiums levels in the proposals is important as it will affect the levels of council tax income generated by the new unitary council and the first year budget strategy. These decisions will also affect the tax base, in particular the major preceptors, as they will need to know the financial position of the new unitary authority as soon as possible.

The proposals to come into effect on 1 April 2023 are expected to generate an additional council tax income of circa £2 million. The Benefits Managers from across the county have been working up proposals for a Council Tax Reduction scheme for the new unitary council to come into effect from 1 April 2023, with the aim of offering 100% support to those on the lowest incomes. Taking this approach would mean that the proposed Council Tax Reduction Scheme for North Yorkshire Council will cost more than it currently does, which is why one of the recommendations in the report is to ringfence the additional council tax income to enhance the council tax reduction scheme.

Sherri Williamson explained that there was also Section 13A legislation introduced that allowed local authorities to award discounts in any circumstances, so if a person felt that as a result of the proposals they have been impacted unfairly, there is the discretion to look at those cases individually.

Premiums were introduced in 2013, with local authorities given the ability to charge dwellings up to 100% if empty and unfurnished for 2 years or more, up to 200% after 5 years or more and 300% after 10 years or more. It is recommended to implement the charges available in the North Yorkshire Council proposals.

County Councillor Greg White asked about the proposed exceptions and who would make those decisions. It was advised that an exceptions policy setting out the guidelines for officers and questions to be asked as part of the process would be brought to the Executive for approval at a later date.

County Councillor Yvonne Peacock was pleased about the proposed policy put forward, in particular for properties in rural areas that fall into disrepair, and through the proposed premiums, this would encourage these properties to be brought back into use. County Councillor Keane Duncan also welcomed the premium on empty homes, citing an example of a property in Ryedale that had been empty and unfurnished for around 30 years, but had now been brought back into use.

In summary, County Councillor Gareth Dadd supported the proposals, highlighting the Section 13A legislation in the Local Government Finance Act to allow consideration of exceptional applications on a case by case basis.

Resolved –

The Executive consider the contents of this report and recommend that Full Council approve:

i.                the following policies for the North Yorkshire Council’s Council Tax discounts from 1 April 2023:

·       0% Council Tax discount on Class A second homes;

·       0% Council Tax discount on Class B second homes;

·       0% Council Tax discount on Class C properties which are unoccupied and substantially unfurnished;

·       0% Council Tax discount on Class D properties which are undergoing major repair or structural alteration;

ii.              the following policies for the North Yorkshire Council’s Council Tax premiums from 1 April 2023:

·       100% Council Tax premium for properties which have been empty and unfurnished for more than 2 years;

·       200% Council Tax premium for properties which have been empty and unfurnished for more than 5 years;

·       300% Council Tax premium for properties which have been empty and unfurnished for more than 10 years;

·       To enable some variation in exceptional circumstances it is proposed that the Council’s powers under Section 13A of the Local Government Finance Act be used to reduce liability in such cases where appropriate.

iii.             that the additional revenue generated from the changes to premiums and discounts in 2023/24 be ring-fenced to support the Council Tax Reduction scheme;