Empty and second homes ‘could fund bill cut’
Author: Ruth Keeling, LGC |
Communities secretary Eric Pickles has suggested councils could use new tax powers over empty and second homes to fund a £20 cut in council tax bills.
The proposal for helping “families and pensioners with the cost of living” came as the government confirmed councils would get new powers to scrap council tax discounts on second homes and change an ’empty home premium’ of 150% tax.
Mr Pickles suggestion for how to spend the estimated £420m which the extra charges on second and empty homes would net councils comes just one week after junior minister Andrew Stunell told MPs that the extra income could be used by councils to offset next year’s 10% cut in council tax benefit funding.
The Department for Communities & Local Government has been asked to clarify whether the extra income would cover the 10% cut and a £20 reduction on the average Band D council tax bill or whether councils would need to choose one or the other.
Mr Pickles said the “common sense reforms” to council tax “will help families and pensioners with their cost of living, keep bills down and making bills easier to pay. This government is on the side of ordinary families, who work hard and do the right thing”.
His claims counter criticisms that the 10% cut in council tax benefit funding from April 2013, and the protection of pensioners from any reductions, will leave low paid working families among the hardest hit by the welfare changes.
Alongside the confirmation of extra taxing powers, other changes to council tax set out on Monday include powers for residents to pay their bills over 12 months rather than 10 and voluntary electric billing.
Mr Pickles also confirmed there would be no tax on solar panels, and said a decision had not yet been made about whether banks should have to pay council tax on repossessed homes. Further work is continuing on scrapping council tax on annex conversations for family members, or “granny flats”.
In a further announcement of efforts to reduce the number of empty homes, DCLG revealed the 20 local authority areas which will receive £25m in order to bring 5,600 empty homes back use.