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The Leader reported that this report is seeking a recommendation from Council for the levels of Council Tax discount that shall apply for 2025/26 as set out in this report.
At the time of the 2024/25 Council Tax Discounts Report, Members made a determination to charge a second home premium of 100% on unoccupied and furnished properties following the Royal Assent of the Regeneration and Levelling Up Act 2023. This determination was to charge the Second Home Premium from 1 April 2025. It therefore gave second homeowners a year’s notice of the change.
The ability to charge a second home premium has been introduced to recognise the impact that high levels of second home ownership can have in some areas. For example, the impact that these have on the number of affordable homes in an area.
At the time of the report, it was anticipated that there would be exceptions to the Second Home Premium and draft regulations were laid before parliament on 8 October 2024 detailing these. These exceptions are detailed within the report.
These exceptions will now reduce the original anticipated revenue from the second home premium stated in the 2024/25 report by an estimated 35%.
Table 1 within the report shows the number of second homes in each council tax band and the anticipated additional revenue that would be raised, allowing for the 35% reduction. It also shows the proportion that would be kept by Great Yarmouth Borough Council being £106,170.
In keeping with the reasons for the implementation of the levy, The Borough Council held discussions with Norfolk County Council on how the additional income could be used to mitigate the impact of administering the change and to help mitigate the limited funds available to support the increased homeless provision needs across the borough.
I can update Members that a revenue share has now been agreed for 2025/26 which would mean Norfolk County Council will pass back 25% of the additional revenue to the Borough Council as a result of implementing the second homes premium.
The Leader reported that North Norfolk District Council, Kings Lynn & West Norfolk District Council and Great Yarmouth Borough Council would issue a joint press release once the Council Tax Discount for 2025/26 had been approved by each respective Council.
Council are asked to approve the following:-
(i) Approve the Council Tax discounts as shown in Table 2 of the report which will apply for 2025/26; and
(ii) With an agreement now in place with Norfolk County Council, on the share of the additional revenue, approve a Second Homes Premium of 100% in addition to the 100% in the paper, for Class B properties from 1 April 2025.
Proposer: Councillor Smith
Seconder: Councillor Plant
RESOLVED:-
That Council:-
(i) Approve the Council Tax discounts as shown in Table 2 of the agenda report which will apply for 2025/26; and
(ii) With an agreement now in place with Norfolk County Council, on the share of the additional revenue, approve a Second Homes Premium of 100% in addition to the 100% in the paper, for Class B properties from 1 April 2025.
CARRIED.