Big council tax charges planned on empty and second homes in North East Lincolnshire

North East Lincolnshire Council will place a 100 per cent premium on second homes and those empty for 12 months or more. Full council passed the tax base for 2024/25 on Thursday, December 15. At the same meeting, the council leader said that it, like other local authorities in the country, was “financially challenged”.

The council tax base essentially starts the council tax setting process for the next financial year. The level of council tax rise in future and its expected cash-raising will later be worked out from it. The council tax base includes not only a calculation of the number of taxable households, but is the point where decisions on premiums and council tax support are made.

North East Lincolnshire Council has not hesitated to use new government-granted powers to local authorities on extra charges on certain homes. Previously, the council could only charge a 100 per cent premium on empty homes after two years. From April 2024, all homes left vacant for more than 12 months will be charged the 100 per cent premium.

Existing premiums of 200 per cent after more than five years empty and 300 per cent for ten years remain. Councils can soon also charge a 100 per cent premium on second homes. North East Lincolnshire Council will also do this, though because of a required 12-month notice period, it will not take effect until April 2025.

Conservative council leader Cllr Philip Jackson said in his leader’s statement that local authorities up and down the country were “financially challenged” and North East Lincolnshire Council “is no exception”. It would continue to lobby government on this, but added: “Whilst we still await the 24/25 financial settlement from government, this administration is confident that we will deliver a balanced budget for the forthcoming year at the February full council meeting.” The budget setting process for next year has begun and members of the public can take part in a consultation[1] until January 18. Since last year, there has been an increase of 1,090 in the number of Band D equivalent Council Tax households, to 46,800. “So well done to the planning committee,” said Cllr Stephen Harness, portfolio holder for finance, resources, and assets.

What shops would you like to see in Grimsby? Have your say via the link below, or click here[2]. The council tax support scheme has, like last year, been kept at a maximum 65 per cent discount for all working age residents.

But a two-stage improvement plan to its administration is planned. The first phase would be implemented from April next year and involve improvements to “the customer journey through the application process”. Then, from April 2025, there would be a “full-scale migration to a banded discount scheme”, Cllr Harness told full council.

“This will make limited changes in the level of support in place for residents but will be an easier process of application and processing, removing some of the administrative burden,” a council document states. These changes are subject, however, to a public consultation carried out in the rest of this financial year. And Cllr Karl Wilson, Labour and Co-Operative, was not happy with the verb tenses in the council report on the proposed changes allegedly suggesting it was a done deal. “It’s taking liberty with the public as well with the wording, that it’s going to be done,” he said.

Labour and Co-Op Cllr Karl Wilson, pictured, was not impressed by council document wordingLabour and Co-Op Cllr Karl Wilson, pictured, was not impressed by council document wording

Cllr Matthew Patrick, Labour, continued his “historic opposition to the lack of meaningful support” offered by a maximum 65 per cent discount rate.

Currently, the scheme costs GBP11m to run, of which GBP6m is mandatory and relates to pensioners. He felt the discretionary element was not generous, adding of council tax receipts if it was not there, saying: “One would suspect most would not be forthcoming and a lot of it would be written off in a magistrates court as a further consequence.” He also worried the second homes premium might penalise families because of lots of properties being in probate.

In a re-run of their debate over council tax support last year, Cllr Jackson replied he would not take lessons from Cllr Patrick over council tax support, given the previous Labour-run council cut the maximum rate gradually from 92 per cent to 75.

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References

  1. ^ a consultation (tell-us.questionpro.eu)
  2. ^ click here (ngx.me)
  3. ^ click the link (tinyurl.com)
  4. ^ Privacy Notice (bit.ly)