Agenda item

Report of the Executive Director of Finance & Resources

4.1      Councillor Melvyn Caplan, Cabinet Member for Finance, Property & Regeneration, introduced the item. He explained that the proposal set out in the report is to retain the same Council Tax Reduction Scheme in 2021-22 as in previous years so that those residents who are least able to pay would not be liable for Council Tax under the scheme. He considered this to be especially important given the difficulties that have arisen from the coronavirus pandemic. This was supported by the chairman.

4.2      Councillor Caplan stated that there were no changes proposed to the Council discounts for second homes which would remain at 0%. It was also proposed to continue to charge a Long Term Empty Property Premium at the maximum percentage allowed for by the relevant legislation, which for 2021-22 is a 300% increase for a property that has been empty for over 10 years. He believed that this is a right and proper approach to discourage residential properties from remaining empty. This was echoed by the chairman who stressed that she did not wish to see any empty properties in Westminster given the stress on housing demand.

4.3      Gerald Almeroth, Executive Director for Finance & Resources, advised Cabinet that the taxbase for 2021-22 had risen by 0.84% since last year which is the equivalent of an additional 1000 Band D dwellings up to November 2020. This should yield approximately an additional £500,000 in revenue in 2021-22.

4.4      RESOLVED:

           That the Cabinet recommended:

1.        That the Council approve the following recommendations for the financial year 2021/22:-

(i)              that the Council Tax discount for second homes remains at 0%

(ii)             the Council Tax discounts for empty properties, including the discounts that replaced the previous Class A and C Council Tax exemptions, remain at 0%. 

(iii)           that a Long-Term Empty Property Premium continues at the maximum percentage allowed for by the current legislation, which is for 2021/22:

-        Properties empty between 2 years - 5 years:     100% Increase

-        Properties empty between 5 years – 10 years:  200% Increase

-        Properties empty over 10 years:                        300% Increase

(iv)      that the Director of Revenues & Benefits be given delegated authority to easHejhfifhjdetermine any individual local discount applications received from Council Taxpayers during the 2021/22 financial year under section 13A(1)(c) of the Local Government Finance Act 1992. 

2.        That the Council approve the same Council Tax Reduction Scheme for 2021/22 which has operated successfully since 2013/14. The scheme is based on the Default Scheme Regulations, updated   to reflect changes made via the Prescribed Requirements Amendment Regulations and with War Disabled Pensions, War Widow, Pensions and Armed Forces Compensation scheme payments disregarded in full when calculating a claimant’s income.

3.        That the Council resolve that the Council Tax Base for 2021/22 for the Whole City is 133,817.98equivalent Band D properties, for Montpelier Square alone 100.40 equivalent Band D properties and for Queen’s Park 3,514.63 equivalent Band D properties.

4.       That the Council resolve that the figures set out in paragraph 2.3 of the report for the Council Tax Base for 2021/22 be used by the Council to make a determination pursuant to the requirements of the Local Government Finance Act 1992.

Reasons for Decision

           1.        The taxbase decision is sought in order that the Council complies with

 the requirements of the Local Government Finance Act 1992.

2.        The retention of the same levels of Council Tax discount, for empty properties and second homes will continue to deliver additional Council Tax income for the Council without disadvantaging any vulnerable members of the community.

3.        The recommendation to allow the Director of Revenues and Benefits to continue to determine any individual local discount claims will enable assistance to be given to individual Council Taxpayers if required, especially as there is no longer the ability for taxpayers to claim Discretionary Housing Payments (DHP) in relation to their Council Tax liability. This will also provide the mechanism for granting the local Council Tax discount for Care Leavers and other vulnerable Council Taxpayers.

4.        The Council’s proposed Council Tax Reduction Scheme will mean that the level of Council Tax support provided to the borough’s working age claimants will effectively mirror that previously provided under the national Council Tax Benefit scheme.

5.        The recommendation to set the Long-Term Empty Property Premium at the new maximum allowed for within current legislation aligns with the Council’s City for All agenda and the Council’s aim of a fairer Council Tax system for all residents.