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Agenda item

To submit the report of the Cabinet Member for Finance.

 

Decision:

 

That the Council makes no change to the scheme for 2022/23.  For 2022/23, that Gwynedd Council:

·         Allows NO discount on class A second homes, in accordance with Section 12 of the Local Government Finance Act 1992.

·         Allows NO discount and RAISES A PREMIUM of 100% on class B second homes, in accordance with Section 12B of the Local Government Finance Act 1992.

·         Allows NO discount on homes that have been empty for 6 months or more and RAISES 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.

 

Minutes:

The Cabinet Member for Finance, Councillor Ioan Thomas, presented a report asking the Council for formal confirmation for 2022/23, of the previous decisions not to give discounts to second homes and to disallow discounts on empty properties, and to raise a premium of 100% on such relevant properties.

 

Members were given an opportunity to make observations and ask questions.  The following matters were raised by individual members:

 

·         It was noted that the circumstances of individuals and families who owned long-term vacant properties varied greatly, and it was asked what support could be given to those individuals. In response, it was noted that the recommendation remained to raise a Premium on long-term vacant properties as such properties could cause social problems in some locations, but that a policy could be introduced under another section of the act which allowed the Council discretion to reduce the Premium in some cases, such as where a property had been inherited by family, and there was work to bring the house back to order as part of the estate.

·         It was asked how close we were to the estimation that an additional £3.9m generated by the 2021/22 premium would be available to the fund, given that 2,045 properties had been transferred from the Council Tax list to the Non-domestic Rating list.  In response, it was explained, in preparing the estimates every year, there was a need to look prudently at how many would transfer, anticipating that the pattern of transferring would continue without legislative intervention. Late transfers in this financial year could mean loss, maybe, that would be back-dated for a period.  Therefore, it was impossible to say how close we were to the £3.9m, but currently, we could be quite confident that we would be relatively close in terms of the money coming in.

·         In response to a question, it was explained that the definition of a property that was unsuitable for habitation was in the hands of the District Valuer.  Anyone who owned this type of property was asked to contact the Valuer, and should the Valuer conclude that it was unsuitable, it would be removed from the banding.  The valuer had recently tightened the definition, so that the property had to be more or less derelict before being removed from the list.  It was noted, should members have concerns about a specific property in their ward, they could discuss them with the Finance Department in the first instance.

·         Concern was expressed that caravan owners did not pay any Council Tax, yet they used Council services, and it was suggested that this should be reviewed.

·         The importance of adhering to the policy of raising a Premium on second homes and keeping the pressure on Welsh Government to solve the holiday homes problem was emphasised.

·         It was suggested that the extended exemption period of 12 months to renovate long-term empty property was not enough as it was very difficult nowadays to find a builder / joiner / plumber / electrician to collaborate and complete all the work within such a tight schedule. In response, it was noted that the Housing Action Plan made a provision for cases that required more than 12 months.  Support was available for local people to have a further period of tax exemption, and members were welcome to contact the department if they were aware of specific cases.

·         It was noted that the greatest problem was people turning their houses into businesses, and it was asked what the Council was doing to prevent this, especially in preparing for the pilot scheme in Llŷn.  It was suggested that there was more or less no purpose to having the Premium, if the properties were being lost, and if people were avoiding paying any Council Tax.  Also, referring to the pilot scheme, it was asked how much emphasis was placed on the Welsh language and Welsh speaking communities, and the need for these communities to be earmarked as areas of special interest, globally in fact.  In response, it was explained that the Leader had already referred to this in answering Councillor Gwynfor Owen's question under item 6 above.  The Planning Policy Department had undertaken a piece of work a year ago, and this was Welsh Government's basis for commissioning a report from Dr Simon Brookes.  It was this, and the discussions between the Council and Welsh Government, that had led to the statement last week, and more information on this was awaited from the Government.  It was further noted there was a consultation in the pipeline on how to close the gap, or the ability to transfer to Non-domestic Tax.  The Council's perspective had been very clear for years that a house was a house, and it was not possible for people to avoid paying the tax.  Amending Section 66 of the current Housing Act and closing the gap was a very easy way of preventing this from happening, and this is what would be conveyed as firmly as possible in Gwynedd Council's response to the consultation.

·         Concern was expressed that the Council was always trying to keep up with the transfer problem, and that the situation was not being policed.  People were turning their houses into businesses and using the Council's waste collection service.  Welsh Government legislation was still holding us back, and ministers refusing to speak to us.  There was a need to change the situation, and encourage everyone to fight, so that we are able to maintain control over our housing stock in our communities.

 

RESOLVED that the Council makes no changes to the scheme for 2022/23.              For 2022/23, that Gwynedd Council:

 

·                Allows NO discount on class A second homes, in accordance with Section 12 of the Local Government Finance Act 1992.

·                Allows NO discount and RAISES A PREMIUM of 100% on class B second homes, in accordance with Section 12B of the Local Government Finance Act 1992.

·                Allows NO discount on homes that have been empty for 6 months or more and RAISES 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.

 

Supporting documents: