Agenda item

To consider a report from the Cabinet Member for Finance (copy enclosed)

The Cabinet Member for Finance presented a report which asked members to note the Council Tax Base for the setting of the Westmorland and Furness Council Tax for 2023/24, and to approve Council Tax premiums and discounts, business rate reliefs and war pension disregards that feed in to the budget report.

The Cabinet Member took members through the report in detail, highlighting 4 specific areas:-

·         Council Tax base

As part of the Council Tax setting process each year there is a requirement to calculate, set and approve a Council Taxbase from which Council Tax was set.

For 2023/24 Westmorland and Furness would set Council Tax using a combined taxbase calculated from the three current billing authorities.  The taxbase does not require formal approval but was required ahead of the setting of the budget and approval of the Council Tax.

·         Council Tax Premiums and Discounts

Whilst a large part of the Council Tax legislation was mandatory such as Single Person Discounts and Disregards and Exemptions, there were a number of areas where Councils may determine, the type and levels of discount or charges to be made.

The schemes currently operated by the sovereign district councils were very similar and alignment was, in the main, straightforward. In the majority of the areas, the proposal would be to make ‘no significant change’ to the existing provisions adopted.

The impact of premiums on empty properties and potential changes to 2^nd homes discounts did however have a greater impact.

Premiums for Empty Homes were introduced by Government in 2013 with a view to encouraging homeowners to occupy homes and not leave them vacant in the long term.

Initially premiums could only be charged at 50% but legislation had now changed to allow a progressive charge:

·           2 years or more, up to 100%

·           5 years or more, up to 200%

·           10 years or more, up to 300%

It was proposed that the premium for an empty property over 5 years is 200% and over 10 years is 200% for 23/24 increasing to 300% in 2024/25.  

The Cabinet Member then informed members that Cumbria Care Leavers Council Tax Exemption Policy was agreed in 2018 to support care leavers up to the age of 25 by granting up to 100% discretionary relief from Council Tax. This will be continued.

·         Business Rates Reliefs

Non-Domestic Rating had a large number of reliefs divided into mandatory and discretionary.

Mandatory reliefs were set by legislation and the new Westmorland & Furness Council would implement those in full.

Discretionary reliefs are in some cases fully defined and funded by Government through sct 31 grants. In addition it is proposed that discretionary reliefs to top up the mandatory charity relief of 80% is continued and 100% relief for non profit making organisations  and 100% rural rate relief continues (as defined in para 3.26 of the report).

·         War Pensions Disregard

On the 23 January 2023 Council agreed the 100% voluntary disregard any of incomes prescribed within the Housing Benefit and Council Tax Benefit (War Pension Disregards) Regulations 2007 under the provision contained within Section 134(8) and 139(6) of the Social Security Administration Act 1992 for the purposes of determining Council Tax Support entitlement from 1 April 2023.

Cllr Jarvis, as the Cabinet Member for Finance moved the recommendations and these were seconded by Cllr J Brook.

Cllr McEwan spoke to say he welcomed the proposals, especially the offer of discretionary support and he was pleased to hear that the Government had announced plans to stop second home owners claiming discounts for second homes and business rate discounts.

Cllr Carrick pointed out an anomaly in the table on page 23 in relation to figures quoted for the proposed discretionary relief for non profit making organisations whereby 90% relief is available for an RV between 30,000 and 50,001. The table in para 3.26 did not clarify this position sufficiently.

The recommendations were then put to a vote, which was unanimous.  It was therefore,

RESOLVED, that the Shadow Authority

(1)      notes the Council Taxbase used for the setting of the Westmorland and Furness Council Tax for 2023/24;

(2)     approves the harmonisation of premiums and discounts as set out at 3.7 and 3.18 of the report;.

(3)     approves the discretionary rate reliefs and exclusions set out at 3.26 and 3.27.

(4)      approves the 100% voluntary disregard of any incomes prescribed within the Housing Benefit and Council Tax Benefit (War Pension Disregards) Regulations 2007 under the provision contained within Section 134(8) and 139(6) of the Social Security Administration Act 1992 for the purposes of determining Housing Benefit entitlement from 1 April 2023.