Consultation begins on proposals to apply additional council tax premiums on long term empty and second homes in County Durham.
Durham County Council is seeking views on the proposals which are intended to bring properties back into use whilst also generating additional spending power for the authority, at a time when it is having to make millions of pounds of savings. The need to make savings is due to unavoidable inflationary spending pressures outstripping its council tax raising powers and the grant it receives from government.
The proposed changes follow the government’s proposals in the Levelling Up and Regeneration Bill which is being progressed through parliament. The bill makes provision for authorities to increase council tax charges on long term empty and second homes, and comes as other councils consider similar moves.
Under the proposals, the council would:
• Increase the council tax premium charge for properties which have been unoccupied and unfurnished for more than ten years from 200 to 300 per cent. This is line with existing legislation and if agreed would take effect from 1st April 2024.
• Reduce the period of time a property can be unoccupied and unfurnished before being subject to 100 per cent council tax premium, from two years to one year. If agreed, this would come in from 1st April 2024, subject to proposed legislation becoming law by then.
• Apply a 100 per cent council tax premium charge on second homes – properties where there is no resident, and which is substantially furnished. If agreed, this would come in from 1st April 2025, subject to the proposed legislation becoming law by then.
In recognition of the financial impact the proposals may have on affected property owners, the council will review its Discretionary Discounts policy setting out the circumstances in which reductions in council tax payments can be applied, should the changes be agreed.
The proposal to carry out consultation was agreed by the council’s Cabinet earlier this month, when it considered a report on the authority’s updated Medium Term Financial Plan.
Consultation runs until 5pm on Wednesday, 13th September. The survey can be completed online at www.durham.gov.uk/consultation or by picking up a paper copy at any Durham County Council library or Customer Access Point.
The circumstances in which a reduction in council tax can be applied currently can be found online at Council tax on empty properties and second homes.