Issue - meetings

To recommend to the Full Council on 1 December 2022 that the following is the favoured option in relation to the level of Council Tax Premium on Second Homes and Long-term Empty Properties for the 2023/24 financial year:

·         That Cyngor Gwynedd allows NO discount on class A second homes, in accordance with Section 12 of the Local Government Finance Act 1992 (i.e. no change).

·         That Cyngor Gwynedd allows NO discount and CHARGES A PREMIUM OF 150% on class B second homes in accordance with Section 12B of the Local Government Finance Act 1992 (i.e. increase from 100% to 150%).

·         That Cyngor Gwynedd allows NO discount on homes that have been empty for 6 months or more and CHARGES A PREMIUM of 100% on homes that have been empty for 12 months or more, in accordance with Section 12A of the Local Government Finance Act 1992 (i.e. no change).

The report was submitted by Cllr Ioan Thomas     

DECISION 

To recommend to the Full Council on 1 December 2022 that the following is the favoured option in relation to the level of Council Tax Premium on Second Homes and Long-term Empty Properties for the 2023/24 financial year: 

·                That Cyngor Gwynedd allows NO discount on class A second homes, in  

accordance with Section 12 of the Local Government Finance Act 1992 (i.e. no change). 

·                That Gwynedd Council allows NO discount and CHARGES A PREMIUM OF  

150% on class B second homes in accordance with Section 12B of the Local Government Finance Act 1992 (i.e. increase from 100% to 150%). 

·                That Cyngor Gwynedd allows NO discount on homes that have been empty for  

6 months or more and CHARGES A PREMIUM of 100% on homes that have  

been empty for 12 months or more, in accordance with Section 12A of the Local Government Finance Act 1992 (i.e. no change). 

DISCUSSION 

The report was submitted noting that it was a step in the governance procedure as the Council moved on to determine how to respond to recent legislative changes in relation to the Council Tax Premium.  

It was emphasised that any decision on the rate of the Premium alone did not resolve the serious problem and the numbers of second homes within areas in Gwynedd. It was explained that the use of the planning process and securing second home licensing was much more relevant. The recent response of the Welsh Government was welcomed, highlighting that the Council's perseverance when lobbying and submitting evidence had secured action.  

It was explained that the Housing (Wales) Act 2014 had added new sections to the Local Government Finance Act 1992. It was expressed that the new clauses had allowed Welsh billing authorities to charge additional Council Tax on specific property classes. It was also explained that the default position in the 1992 Act was to provide a discount of 50% for the property if the Council did not make a decision every year to fund this from the Council's coffers. It was expressed that the Council had a discretionary right for many years not to give a discount to these properties, and since 2017, the right to charge a premium.  

It was highlighted that the Council had charged a 50% premium on second homes and long-term empty properties between April 2018 and March 2021, and then 100% since 1 April 2021. It was explained that on those occasions when the Premium had been introduced and increased that substantial work had been done to assess the situation and hold public consultations and an Equality Impact Assessment.  It was expressed that Sections 12A and 12B of the 1992 Act had been changed again recently and that the changes would be operational from 1 April 2023. It was noted that these changes had been made in order to increase the level of Premium that can be charged by local authorities. It was  ...  view the full minutes text for item 6