Agenda item

Report of the Executive Director of Corporate Resources and Customer Services

The Cabinet considered the report of the Executive Director of Corporate Resources and Customer Services providing details of the review of the local Council Tax Reduction Scheme for the current year 2023/24, and proposing that there was a change made to the scheme with effect from 1April 2024 for working-age households, in employment, in receipt of Universal Credit.

The report also proposed the introduction of  new discretionary council tax premiums on ‘dwellings left empty for 1 year or more’ from 1 April 2024 and on ‘dwellings occupied periodically’ (second homes) from 1 April 2025.

A summary was provided of the feedback received on recent consultations undertaken on changes to the Council Tax Reduction Scheme and on the proposals to introduce new discretionary council tax premiums along with the associated equality impact assessments.

The report also provided an updated Council Tax Base for Sefton Council and each Parish area for 2024/25.

The following Annexes were attached to the report:

·       Annex A: Council Tax Base Report 2024/25.

·       Annex B: Proposed changes to the Council Tax Reduction Scheme for 2024/25, including consultation summary and equalities impact assessment.

·       Annex C: Proposed introduction of new council tax premiums on ‘dwellings left empty for 1 year or more’ and on ‘dwellings occupied periodically’, including consultation summary and equalities impact assessment.

Decisions Made:

That

(1)      the content of the review of the Council Tax Reduction Scheme for the current year, 2023/24, be noted;

Council

(2)      the Council be recommended to note the content of the review of the Council Tax Reduction Scheme for the current year, 2023/24;

(3)      the Council be recommended to note the outcome of a public consultation exercise and approve a change to the Council Tax Reduction Scheme for working-age households, in employment and in receipt of Universal Credit with effect from 1April 2024;

(4)      the Council be recommended to approve the introduction of a 100% council tax premium on dwellings left empty for 1 year or more from 1 April 2024;

(5)      the Council be recommended to approve the introduction of a 100% council tax premium on dwellings occupied periodically from 1 April 2025; and

(6)      the Council be recommended to approve the relevant Council Tax Base for Sefton Council and each Parish Area for 2024/25, as set out in Annex A of the report.

Reasons for the Decisions:

Council Tax Reduction Scheme

Each financial year, the Council had to consider whether to revise or replace its local Council Tax Reduction Scheme. The Council was required to approve and adopt the 2024/25 Council Tax Reduction Scheme by 11 March 2024, as set out in the Council Tax Reduction Scheme (Amendment) (England) Regulations 2017.

The report provided an update on key aspects of the local Council Tax Reduction Scheme for the current year, and also provided details of a public consultation exercise that had recently been undertaken to seek views on making a change to the scheme affecting working-age households, in employment, and also in receipt of Universal Credit. After consideration of the factors outlined later in the report, it was proposed that the local Council Tax Reduction Scheme for 2024/25 was changed for working-age households, in employment, in receipt of Universal Credit.

Council Tax Base

In accordance with Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012, as amended, the Council was required to set a tax base for both Sefton Council and for each Parish Area for 2024/25 before 31 January 2024.

Introducing a premium on dwellings left empty for 1 year or more

The Council already applied a 100% premium on properties left empty for 2 years or more. Extending this premium to dwellings left empty for 1 year or more would encourage owners of these homes to bring them back into use. Any additional income raised from the premium would help support the provision of Council services.

Introducing a premium on dwellings that are occupied periodically

Introducing a premium on dwellings that were occupied periodically (second homes) would encourage owners of these homes to make these available for sale or rent which would increase the amount of housing available to local residents. Any additional income raised from the premium would help support the provision of Council services.

Alternative Options Considered and Rejected:

Council Tax Reduction Scheme

The Council might decide to leave the Council Tax Reduction Scheme unchanged for 2024/25. Without a change to the scheme, households in employment moving from legacy state-benefits to Universal Credit were likely to face frequent changes to their entitlement, with the knock-on effect being frequently changing Council Tax bills and payment-plans, as well as an expected additional administrative burden for the Council.

Introducing a premium on dwellings left empty for 1 year or more

The Council could choose not to introduce the premium. However, this would not provide any additional incentive for owners of these long-term empty homes to bring them back into use. Alternatively, the Council could choose to introduce a lower premium percentage (25%, 50%, or 75%). However, this would provide a lower level of incentive and reduce the amount of additional council tax income available to support local services.

Introducing a premium on dwellings that are occupied periodically

The Council could choose not to introduce the premium. However, this would not provide any additional incentive for owners of these properties to make them available for occupation by local residents. Alternatively, the Council could choose to introduce a lower premium percentage (25%, 50%, or 75%). However, this would provide a lower level of incentive and reduce the amount of additional council tax income available to support local services.