Agenda item

To consider a report by the Head of Finance and the Business Support Manager (copy attached) for Members to decide whether to charge a Council Tax Premium on long term empty homes and second homes.

 

The Lead Member for Finance, Performance and Strategic Assets introduced the report (previously circulated) to inform members of the new powers Local Authorities in Wales had to increase Council Tax charges on long term empty homes and second homes as a result of the Housing Act (Wales) 2014.

 

From 1 April 2017, Councils in Wales were given the powers to charge homeowners up to 100% extra Council Tax on long term empty homes and second homes.  These powers had been delegated through the Housing (Wales) Act 2014.

 

Local Authorities were required to have the charges ratified by Full Council one year prior to the implementation for second homes.  However, for long term empty homes, the requirement would only be that the property must have been empty for at least a full year before a charge would be levied.

 

The stated aims of the legislation were intended as tools:

·       For Local Authorities to help bring empty homes back into use

·       To increase the supply of affordable housing

·       To enhance the sustainability of local communities.

 

Public consultation had taken place from 16 November 2016 to 14 December 2016 during which a total of 49 responses were received.  The overall feedback from the consultation had been supportive of a charge on second homes and long term empty properties.

 

Whilst the charging of a premium on the properties would generate additional funds, the main driver for Welsh Government in introducing the legislation was to help Local Authorities to:

·       Bring long term empty homes back into use to provide safe, secure and affordable homes, and

·       Support Local Authorities in increasing the supply of affordable housing and enhancing the sustainability of local communities.

 

Exemptions to the Council Tax Premiums on long term empty homes and second homes were contained within the report.

 

During discussion, Councillor Glen Swingler of the Plaid Cymru Group proposed, seconded by Councillor Mabon ap Gwynfor, that the premium on long term empty homes and second homes be 100% and not 50% as recommended within the report.

 

The Lead Member for Finance, Performance & Strategic Assets explained the attributing of 50% would be consistent with neighbouring Local Authorities and that a review of the implementation of the Council Tax premium would also take place in September 2018.

 

It was confirmed Local Authorities would be encouraged to use any additional revenue generated to help meet local housing needs, in line with the policy intentions of the premiums.  Council Tax income could not be ring-fenced for a specific area, but would be added to the Corporate Plan Housing element.

 

Councillor Graham Timms expressed his concern at the percentage of people who had responded to the consultation.  He queried whether it was a statutory requirement to go out to consultation and whether the responses were consequential. 

 

It was confirmed that it was a statutory requirement to consult and it was felt that the 50% level would give an incentive to bring properties back into residential use.

 

Councillor Joan Butterfield requested a short deferral of the meeting for the Labour Group to consider the two options charging a premium of either 50% or 100%.

 

It was agreed by all present to defer for Groups to hold a short discussion before proceeding with the remainder of the meeting.

 

At this juncture (11.00 a.m.) there was a 15 minute deferral of the meeting.

 

The meeting reconvened at 11.15 a.m.

 

Lead Member Councillor Julian Thompson-Hill summed up the debate and explained it had been an extremely interesting and positive discussion.

 

The recommendation within the report had been for a 50% premium rate but an amendment had been put forward by Councillor Glen Swingler for a 100% premium.  A vote would take place initially on the proposed amendment of charging 100% premium.

 

At this juncture, Councillor Arwel Roberts requested a Recorded Vote.

 

The Head of Legal, HR & Democratic Services stated that within the Constitution it was required that one sixth of Members had to be in favour of the Recorded Vote so there was a requirement of a minimum of 7 Members.  8 Plaid Group Members stood in favour of the Recorded Vote.

 

A recorded vote took place as follows:

 

In Favour of 100% Premium:

Councillors Mabon ap Gwynfor, Meirick Lloyd Davies, Huw Jones, Gwyneth Kensler, Arwel Roberts, Glen Swingler, Rhys Thomas and Emrys Wynne.

Total Number of 8 Members voted in favour of the 100% Premium.

 

Against 100% Premium:

Councillors Brian Blakeley, Joan Butterfield, Ellie Chard, Ann Davies Gareth Lloyd Davies, Hugh Evans, Peter Evans, Bobby Feeley, Tony Flynn, Rachel Flynn, Huw Hilditch-Roberts, Martyn Holland, Hugh Irving, Alan James, Tina Jones, Pat Jones, Geraint Lloyd-Williams, Richard Mainon, Christine Marston, Barry Mellor, Melvyn Mile, Bob Murray, Merfyn Parry, Paul Penlington, Anton Sampson, Peter Scott, Tony Thomas, Julian Thompson-Hill, Graham Timms, Joe Welch, Cheryl Williams, David Williams, Huw Williams and Mark Young.

Total Number of 34 Members voted against the 100% Premium.

 

Abstain – 0

 

Therefore, the amendment put forward by Councillor Glen Swingler for the 100% Council Tax Premium was defeated.

 

At this juncture, Councillor Mark Young proposed an amendment of 50% for the first year and 100% for the second year on long term empty homes only, seconded by Councillor Peter Evans.

 

Councillor Joan Butterfield also proposed an amendment to charge the premium of 50% for the first year with a review after 12 months and if proved positive to possibly increase the amount to 100% in year 2.

 

At this juncture, Councillor Mark Young rescinded his amendment as he supported the amendment put forward by Councillor Joan Butterfield.

 

The Head of Legal, HR & Democratic Services clarified the recommendations for the purpose of the vote as follows:

 

VOTE:–

 

Recommendation 1a – Charge an additional 50% Council Tax levy on long term empty properties:

In favour – 41

Abstain – 0

Against – 1

 

Recommendation 1b – Charge an additional 50% Council Tax levy on second homes:

In favour – 35

Abstain – 0

Against – 6

 

Block vote would take place for the following two recommendations:

 

Recommendation 2 – the charge is implemented on long term empty properties from April 2018 and second homes from April 2019 (legislation advises we must give second home owners 12 month notice of any charges), and

 

Recommendation 3 – Review to be conducted of the effect of the implementation of this measure and to be brought back to Full Council in 12 months:

 

In favour – 42

Abstain – 0

Against – 0

 

RESOLVED  that Members agreed to:

1.     (a)      Charge an additional 50% Council Tax levy on long term empty homes

(b)      Charge an additional 50% Council Tax levy on second homes

2. the charge is implemented on long term empty properties from April 2018 and second homes from April 2019 (legislation advises we must give second home owners 12 month notice of any charges)

3. Review to be conducted of the effect of the implementation of this measure and to be brought back to Full Council in 12 months