Issue - meetings

This report reviews the responses to the public consultation of the Council’s Local Council Tax Support scheme, along with the recommendations from the Finance and Economic Overview and Scrutiny Committee which took place on 26 November 2024.

Members reviewed responses to the public consultation of the Council’s Local Council Tax Support Scheme (LCTSS or ‘the Scheme’) 2025/26, along with recommendations from the meetings of the Finance and Economic Overview and Scrutiny Committee held on 26 November 2024 and the Cabinet meeting held on 16 January 2025.

Note:  Councillor Rob Shorrock arrived at the meeting.

The Scheme was reported as a ‘no change’ scheme for 2025/2026.

The introduction of the Second Home Premium was included in the Levelling Up & Regeneration Bill, to allow councils the ability to charge a council tax premium of up to 100% for any property left empty for more than 72 days a year. The regulations were laid before Parliament on 8 October 2024 which set out the exceptions to council tax premiums on second homes. These regulations came into force on 1 November 2024 and would be effective from 1 April 2025 and set out mandatory exceptions to the Second Home Premiums. 

As part of the consultation and approval process for the 2024/25 LCTS scheme, Council approved the introduction of the premium from 1 April 2025 at its meeting on 25 January 2024. In November 2024, letters were issued to all owners of second homes (359), making them aware of the exceptions. An exception application form was included with the letter, asking the owner to complete and return this if they believed the second property was eligible for an exception to the premium. The form requested the owner to provide the reason and evidence for the exception. Of the 359 letters issued, 119 had responded. Of those, 100 respondents advised which exception they believed their property should have applied to it, with the remaining 19 providing no details. 

Officers were currently reviewing the responses and evidence provided and would determine whether the property was applicable for the exception. Therefore, of the 359 second properties, 100 were potentially eligible for the exemption and 251 would have the premium applied to the Council Tax account as part of the annual billing process in March 2025, increasing Council Tax annual liability by £520,308 per annum. If this was paid in full, South Kesteven’s share of this additional income would be £46,828 (9%).

Having been moved and seconded, and following a vote it was AGREED:

DECISION

That Full Council approves the Localised Council Tax Support Scheme for the financial year 2025/2026 based on the same criteria as the existing scheme as detailed within the report.

Purpose of the report

This report reviewed the responses to the public consultation of the Council’s Local Council Tax Support Scheme (the Scheme) for 2025/26, along with the recommendations from the meeting of the Finance and Economic Overview and Scrutiny Committee of 26 November 2024.

Decision

Cabinet recommended to Full Council the introduction of the Council Tax Support Scheme for 2025/26 based on the same overarching criteria as the existing scheme as detailed in paragraphs 2.16 to 2.34 of the report.

Alternative options considered and rejected

All options for consultation were detailed in Appendix One of this report.

Not undertaking any consultation was not an option. Consultation as to the

administrative and financial impact of a change/new scheme was a legal requirement. This scheme must be reviewed, consulted upon, and approved on an annual basis.

Reasons for the decision

Each year the Scheme must be reviewed to ensure it was fit for purpose. When it came into effect in April 2013, there was 80% entitlement for working age claimants. There had always been an element of cost incurred by the Council over which it had no influence.

The Scheme was implemented locally by the Council, and precepting authorities such as Lincolnshire County Council and the Police and Crime Commissioner, key stakeholders and residents were consulted on a ‘no change’ scheme. Finance and Economic Overview and Scrutiny Committee on 26 November 2024 recommended to Cabinet a ‘no change’ Scheme.

The introduction of a Second Home Premium from 1 April 2025 was a measure to allow councils the ability to charge a council tax premium of up to 100% for any property left empty for more than 72 days a year. The regulations were laid before Parliament on 8 October 2024 which set out the exceptions to council tax premiums on second homes. These regulations came into effect from 1 April 2025 and set out mandatory exceptions to the Second Home Premiums.

As part of the consultation and approval process for the 2024/25 Scheme, Full Council approved the introduction of the premium from 1 April 2025 at its meeting on 25 January 2024. In November 2024, letters were issued to all owners of second homes (359), making them aware of the exceptions. An exception application form was included with the letter, asking the owner to complete and return this if they believed the second property was eligible for an exception to the premium. The form requested a reason and evidence for the exception. Of the 359 letters issued, 119 had responded. Of those, 100 respondents advised which exception they believed their property should have applied to it, with the remaining 19 providing no details.

Officers were currently reviewing the responses and evidence provided and would determine whether the property was applicable for the exception. Therefore, of the 359 second properties, 100 were potentially eligible for the exemption and 251 would have the premium applied to the Council Tax account as part of the annual billing process in March 2025, increasing Council Tax  ...  view the full minutes text for item 96