Agenda item

To submit the report of the Head of Function (Resources)/Section 151 Officer.

The report of the Head of Resources and Section 151 Officer was presented for the Executive’s consideration. The report sought the Executive’s views on the requirement for the Isle of Anglesey County Council as a billing authority for its area, to make a decision whether to charge a premium of up to 100% of the standard rate of council tax on long-term empty dwellings and second homes by 31 March, 2016 to come into effect on 1 April, 2017 and set out the considerations and implications relevant to the determinations to be made on this issue prior to the matter being considered by Full Council.

The Head of Resources and Section 151 Officer reported that the Welsh Government when giving power to local authorities in Wales to charge a premium on the Council Tax had the aim that such powers would assist local authorities in bringing long-term empty homes back into use to provide safe, secure and affordable homes and to support local authorities to increase the supply of affordable housing and enhance sustainability of local communities. In formulating a view on the matter, a balance needs to be struck between prescribing a level that is sufficiently high to achieve that objective (if it is so determined that a council tax premium should be applied) and ensuring that it is clear and understandable, does not incur excessive costs to the Council in administration and does not impact on Council Tax collection. The Officer said that in his professional opinion, the same level of council tax premium should apply to both second homes and long-term empty property and should be levied initially at 25% of the standard rate of Council Tax and be reviewed in the second year of operation prior to implementation in 2019/20.

The Portfolio Member for Finance endorsed the professional view of the Officer. The Empty Homes Officer reported on the position in Anglesey with regard to the number and percentage of homes on the Island having no usual residents.

It was resolved to recommend to the Full Council at its meeting on 10 March, 2016 –

•           That the Isle of Anglesey County Council (“Full Council”) as a billing authority in Wales  uses its discretionary powers under sections 12A and 12B of the Local Government Finance Act 1992 (“the 1992 Act”) as inserted by the Housing (Wales) Act 2014 (the 2014 Act) to dis-apply any discount(s) granted to long-term empty dwellings and dwellings occupied periodically (usually known as second homes) and apply a higher amount of council tax (called the Council Tax Premium) to come into effect from 1 April, 2017.

•           That the Council Tax Premium be set at 25% of the standard rate of council tax for both long-term empty dwellings and for dwellings occupied periodically (usually known as second homes), and that a review of the Council Tax premiums be undertaken by the Head of Function (Resources) and Section 151 Officer during 2018/19 (after the first full year of operation of the Council Tax premiums) to establish if the premiums determined have met the aims of the Executive and the Full Council and whether, as a consequence, the premium levels determined need to be varied or revoked when the Full Council sets its Council Tax requirement for 2019/20. The revised premiums, if applicable, will then come into force from 1 April, 2019 onwards.

•           That the Council instructs and authorises the Head of Function (Resources) and Section 151 Officer:

•           To publish a notice of its determination to charge a premium in a local newspaper within 21 days of its decision.

•           To communicate its decision, also within 21 days and in particular to those who may be affected, by publication of press notices, providing information on website pages or other avenues to raise awareness. This to include direct communication with council taxpayers who are likely to be liable for the premium and in particular to those who normally reside outside the local authority area.

•           To ensure that administrative arrangements are put in place to establish (before the Executive calculates the Council Tax Base for 2017/18 and the Full Council sets its Council Tax requirement for 2017/18) the estimated number of long-term empty dwellings and dwellings occupied periodically (usually known as second homes) that will be eligible to be charged a Council Tax premium under the 1992 Act, as inserted by the 2014 Act, subject to the exceptions allowed by regulations.

•           To ensure that administrative arrangements are put in place for the proper administration and enforcement of the Council Tax premium from 1 April, 2017 onwards and notes that the Executive agrees in principle (subject to the Executive’s approval) to any additional resources that is deemed necessary (by the Head of Function (Resources) and Section 151 Officer), to ensure that there is proper administration and enforcement of the Council tax premium, which will initially include, establishing the estimated number of dwellings where the Council Tax premium will apply.

•           That the Council also instructs and authorises the Head of Function (Resources) and Section 151 Officer (before the Executive calculates the Council Tax Base for 2017/18 and the Full Council sets its Council Tax requirement for 2017/18) that the Executive, and the Full Council (as a billing authority in Wales) is advised whether it needs to determine under section 13 A of the 1992 Act to use its discretionary powers to reduce council tax liability resulting from a Council Tax premium being charged, to such extent it thinks fit. For fairness and transparency, should such a determination be required, advice is to be provided if the full Council should adopt a clear policy on whether and how these powers will be used, with appropriate delegated decision making authority being provided for in the Council’s Constitution, but also recognising that each case is considered on its merits having taken into account the circumstances of each case.