9 COUNCIL TAX: DISCRETIONARY POWERS TO ALLOW DISCOUNTS AND/OR RAISE A PREMIUM 2021/22 PDF 262 KB
To submit the report of the Cabinet Member for Finance (attached).
Additional documents:
Decision:
That the Council defers the decision with regards to permitting
discounts and charging a premium, asking the Cabinet to consider the propriety
of increasing the level by up to 100%. The Cabinet is requested to hold a
consultation process on this basis, to consider the relevant factors, and to
submit a further recommendation to the Council in March 2021 in accordance with
Section 12, 12B and 12A of the Local Government Finance Act 1992.
Minutes:
The Cabinet Member for Finance, Councillor Ioan
Thomas, presented a report asking the Council for formal confirmation for
2021/22, of the previous decisions not to give discounts to second homes and to
disallow discounts on empty properties, and to raise a premium of 50% on such
relevant properties.
In specific reference to second homes, the Cabinet
Member noted:-
·
That the provision and
density of holiday homes had grown over recent years, together with the
associated effect socially, economically and environmentally.
·
That the popularity of
Gwynedd as a holiday destination and the use of holiday accommodation as a
financial investment were factors, and a significant growth had been seen
recently across the whole county in the number of residential units used as
holiday accommodation.
·
That it was proposed to
submit a research paper on managing the use of dwellings as holiday homes to
the Communities Scrutiny Committee on 10 December, with specific
recommendations to be discussed in the Cabinet on 15 December.
·
Although it was recognised
that it would not be possible to implement those recommendations immediately,
due to the need for legislation by the Welsh Government, the rate of the
Premium on property was a matter that the full Council could act upon.
·
There had been regular
correspondence as well as formal and informal meetings between Gwynedd Council,
ministers and officers from the Welsh Government, to discuss our concerns
regarding the ability of second home owners to use Section 66 of the Local
Government Finance Act 1988 to transfer their property from domestic property,
paying Council Tax, to self-catering units, that are subject to non-domestic rates.
The Deputy Leader noted:-
·
That the recommendation
proposed to continue with the existing situation to raise a premium of 50% on
second homes and empty homes, however, it had become evident from discussions with
members, proposals in the Council and public demands in our communities, that
it was necessary to reconsider the Premium, with the intention to increase
it.
·
The situation in the county
was critical, with housing stock being lost to second homes with local people
unable to afford buying homes in their communities.
·
The Cabinet and the members
had been pressing the Government to change the act and to give us powers to
control second homes. The Government
had stated that we had no evidence to justify this, however, the evidence had
not been published and would be discussed soon.
·
In addition to discussing
the research paper on managing the use of dwellings as holiday homes, the
Cabinet on 15 December would discuss the Housing Action Plan, an ambitious and
exciting plan that would invest approximately £77m in providing housing for
young people in the county.
· Being aware of the strong feelings regarding this matter, he wished to make an amendment to delete the words "and raises a premium of 50% on class B second homes " in the second bullet point of the recommendation, by inserting the words " but deferring the decision regarding setting the Premium and to request that the Cabinet ... view the full minutes text for item 9