Agenda item

To identify the relevant position and risks in relation to the content of the Policy, consider the Cabinet's decision and comment as necessary.

DECISION:

·        To accept the report and note the situation and relevant risks

·        To welcome the Cabinet's decision to approve the Policy

·        To welcome that the Policy is under ongoing review and can be adapted as any legislative changes or changes in circumstances are introduced.

Note / Suggestion

Reword paragraph 3.3 appendix 2 – Equality Impact Assessment to reinforce the statement

Add sustainable tourism as a priority area to paragraph 4.5, Cabinet Report

Submitted - a report by the Cabinet Member for Finance in response to a request from the Committee following a discussion held at the 13 November 2025 committee on Council Tax Collection Rates. The Head of Finance highlighted that the Cabinet had approved the Policy (11.11.25) and in line with Council procedures, it had become operational on 26.11.25. It was stated that Section 13A(1)(c) of the Local Government Finance Act 1992 gave the Council additional discretionary powers to reduce the amount of Council tax payable by individuals or classes of taxpayers.

It was highlighted that the Council used Section 13A of the 1992 Act as a means of introducing local, optional exceptions in very limited cases and prior to the approval of the policy, only Cabinet had the power to make these decisions. Following changes in Legislation and the introduction of a premium, the situation highlighted the need for a policy that would give officers the right to deal with applications for reductions (exceptional circumstances), without going through Cabinet. In addition, operational guidelines had been drawn up, and in line with Cabinet approval, a panel had been set up to consider the applications as a means of achieving consistency in decisions. The panel would consist of the Cabinet Member for Finance, Head of Finance (or Assistant Head) and the Taxation Manager with the Corporate Director and Monitoring Officer invited to observe and advise. It was reiterated that five meetings had been scheduled for 2026 with the flexibility to meet more often if needed. It was reported that the Welsh Government was consulting on the policy, which may lead to the modification of some of the statutory exemptions. It was noted that the Policy would be kept under ongoing review and modified as any legislative changes or updates to the policy were introduced.

The members expressed their thanks for the report

Observations arising from the ensuing discussion:

·        It was noted that the plan was a huge step in the right direction.

·        That willingness to modify the policy according to circumstances was to be welcomed.

·        In the context of an impact assessment, the impact on the Welsh language and families who made a living from tourism needed to be considered – sustainable tourism must be highlighted as a priority.

·        Accepted that there would be ongoing reviews to the policy and that the Welsh Government had recently consulted on the Council Tax Premium.

·        Accepted that the new policy has been developed with input from the Tax Unit.

In response to a comment that there would be a legal risk of having a premium without a policy, the Head of Finance noted that there was a legal risk whether there was a policy in place or not. He reiterated that all policies were balanced on the basis of fairness and safeguarding risk. Should exceptions arise, or certain cohorts needed to be looked at, such as self-catering accommodation failing to reach the 182-day threshold (under current rules, holiday accommodation must be let for 182 days each year to qualify for business rates. Should the dwelling miss the target, the property would be reclassified as a second home and council tax would be charged on it), and without a planning condition, the panel would be able to consider the disproportionality – of attempting to show a difference that is not fair, reasonable, or expected. It would also have to be considered that if the exemption was granted, the Council would be open to challenge and therefore legal discussions and input from the Monitoring Officer on the panel would be essential.

In response to a supplementary question regarding a permanent exemption, it was noted that this would be possible if in accordance with the policy. As the policy developed over time, should cases arise, or a pattern manifest itself then the policy could be updated.

In response to a question about the closure of historic cases, such as the period prior to applications for holiday accommodation including a relevant planning condition, it was noted that the comment was an important one to consider and that the panel would review the situation.

In response to the need to consider risks associated with the policy and what the situation was before the Cabinet had adopted the policy in November 2025, it was noted that all decisions prior to the adoption of the policy were referred to the Cabinet and as a result of an increase in applications for discounts since the introduction of the premium and changes in legislation, it would be appropriate to establish a policy with guidance for officers to respond to the situation in a fair and safe manner; that the policy reduced risk to the Council. In response to a supplementary question about the Council receiving less income due to the impact of the policy, it was stated realistically that the likely cases were those of real hardship and therefore it was not anticipated that the policy would have an impact on tax income, rather, it was a proactive means of avoiding future costs.

RESOLVED:

·        To accept the report and note the situation and relevant risks

·        To welcome the Cabinet's decision to approve the Policy

·        To welcome that the Policy is under ongoing review and can be amended as any legislative changes or changes in circumstances are introduced.

Note / Suggestion

Reword paragraph 3.3 appendix 2 – Equality Impact Assessment to reinforce the statement 'assists local families to stay in the area and renovate housing'

Add sustainable tourism as a priority area to paragraph 4.5, Cabinet Report