Meeting of the Parliament 13 December 2023
The regulations will deliver a key priority for the Government with regard to fairer housing and taxation systems. Both policies have been developed in partnership with local government, through the joint working group on sources of local government funding and council tax reform. In the spirit of the Verity house agreement, the regulations seek to empower local authorities to make decisions about the council tax treatment of second homes in order to determine the balance in use of housing to meet local needs.
In that way, councils would have discretion to apply to second homes either a discount of up to 50 per cent or a premium of up to 100 per cent. That recognises that local authority areas differ and that the impact of second homes across the country is disparate. What might cause pressures in some communities could provide benefit to others. Those decisions should be for councils, based on the market conditions and economic tolerances in their areas.
I note that the UK Government has recently legislated to provide councils in England with the same 100 per cent council tax premium on second homes. I have heard a lot of surprising things in the chamber, but it was intriguing to hear Miles Briggs adopting a more extreme position than his Westminster counterparts.
The instrument also allows councils to grant a six-month grace period with regard to the 100 per cent empty homes premium for new owners of empty properties who are undertaking repairs and renovations. Local authorities will have discretion to extend that six-month grace period. That is aimed at incentivising reoccupation of empty homes and at preventing the empty home council tax premium from becoming a deterrent to new ownership. We have committed to establishing joint best practice guidance with local government to ensure that all councils are aware of the flexibilities in relation to those policies.
The instrument will put councils front and centre in making decisions about the council tax treatment of second and empty homes in their areas. I hope that members will agree with the Government on that this evening.