Issue details

Second Home Premium KD1009117

 

 

In October 2023, the Government’s Levelling up and Regeneration Act achieved Royal Ascent. The Act gives Councils powers to apply a premium of up to 100% of the Council Tax charge to the owners of second homes in the borough.

 

The Council is required to give 12 months’ notice of its intention to apply the premium, therefore, the earliest the charge can be brought in, is for the year 2025/6. If the Council wants the option of applying the premium from 2025/6, then the Leadership Team will need to give notice of its intention, via a local newspaper, by 31 March 2024.

 

The final determination whether to apply the premium, should be detailed in the full budget report for 2025/6, and would need full Council approval on recommendation from the Leadership Team. However, at the stage of the 2025/26 full budget report, the determination can also be revoked or varied, for example, not introduced at all or applied at a rate less than the maximum 100%. 

 

Decision type: Key

Decision status: Awaiting Implementation

Wards affected: (All Wards);

Notice of proposed decision first published: 26/02/2024

This decision will be taken under urgency procedures.

Reason for urgency:
The report relates a new power through new legislation but has been provided with little guidance. Further time was required to better understand and work through the options this legislation proposes.

The authority needs to issue a notice to residents a year in advance if it wishes to implement the premium so needs to be discussed at LT in March to ensure the option of implementation remains available to the Leadership Team.

Decision due: March 2024 by Leadership Team

Lead member: Lead Member for Finance, Customer Services & Net Zero Council

Lead director: Executive Director for Resources

Contact: Paul Ellary, Head of Assessments Email: [email protected], Sophie Evans, Director of Customer Delivery • Customer Access Email: [email protected].

Scrutiny Comments: The Chair of Overview and Scrutiny was notified on 26 February 2024 that the decision is required under General Urgency Provisions in the Council's Constituition.

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