Issue - meetings

[Report of the Director  of Finance. To be introduced by the Cabinet Member for Finance and Strategic Regeneration.]

 To recommend  that Full Council agrees to increase the Council Tax Premium on Properties empty for more than five years  in 2020 and 10 years in 2021.

The Cabinet Member for Finance and Strategic Regeneration introduced the report which requested Cabinet recommend that Full Council agrees to increase the Council Tax Premium on Properties empty for more than five years in 2020 and 10 years in 2021.

The Cabinet Member detailed that the Administration’s manifesto was clear that it was committed to redistributing the burden of Council Tax. This included exploring and evaluating the scope of the existing discretionary reliefs the Council provided in the borough to ensure that it was targeting support at those residents in particular need.

The Cabinet Member noted that, since 2013, Councils had been given the discretionary power to charge a premium on dwellings deemed to be ‘long-term empty’, i.e. properties which have been unoccupied and substantially unfurnished for at least two years. After implementing the last permissible change from 1 April 2019, the amount of Council Tax premium for such properties is currently 100%, so that the payer was liable to pay a total 200% Council Tax. The legislation again had recently been changed to give Councils the power to increase the premium on 1 April 2020 from 100% to 200% on properties empty for more than 5 years with a further increase on 1 April 2021 from 200% to 300% for properties empty for more than 10 years.

The Cabinet Member informed that some of the Council’s neighbouring boroughs, such as LB Enfield, LB Islington and LB Barnet currently charged the maximum existing premium of 100% (as did this Council)and were also considering increasing this following the change in legislation. Therefore, the proposal was likely to mean Haringey is aligned with its neighbouring boroughs. In this financial context, the Cabinet Member proposed it was correct to increase the premium payable on long-term empty properties.

The Cabinet Member closed by noting the proposal would create additional income for the Council and contribute to the delivery of vital services and support for the most vulnerable residents.

In response to a question emanating from a Freedom of Information request concerning the number of homes within the borough which were considered long term empty, the Cabinet Member invited Councillor Palmer to provide further details of that request and would look into the matter. The Cabinet Member assured that the Council did collect tax premium on any long-term empty properties.

RESOLVED

That the Cabinet recommends to Full Council:

1. Increasing the premium charged on long-term empty dwellings, empty for more than 5 years, from 100% to 200% this would take effect from 1 April 2020.

2. That from 1 April 2021 there is a further increase from 200% to 300% for properties empty for more than 10 years.

Reasons for Decision

Since 2013, Councils have been given the discretionary power to charge a premium on dwellings deemed to be ‘long-term empty’, i.e. properties which have been unoccupied and substantially unfurnished for at least two years. After implementing the last permissible change from 1 April 2019, the amount of Council Tax premium for such properties is currently 100%,  ...  view the full minutes text for item 139