Plans for 300 per cent jump in Council Tax move forward

Senior Powys councillors have unanimously agreed to ask people from Powys and beyond for their views on increasing Council Tax premiums by up to 300 per cent on long-term empty properties.

At a special meeting of Powys County Council’s Liberal Democrat/Labour cabinet on Tuesday, June 30, councillors received the report on the proposal to go out to consultation on premiums.

Council leader Cllr Jake Berriman (Liberal Democrat – Llandrindod North) reminded his colleagues that the item had been deferred from last week’s cabinet meeting.

From April 2023, Welsh Government expanded the discretionary powers available to local authorities, that allow significantly higher premiums of up to 300 per cent to be charged on long-term empty properties.

At the moment the council charges a 100 per cent Council Tax premium.

This means that the owners pay double the charge and this has been in place since April 2023.

Cabinet member for finance, Cllr David Thomas (Labour – Tawe Uchaf) explained the proposal: “Long term empty properties represent a substantial under used asset that could help meet local need more sustainably.

“A stepped premium approach  where the level increases incrementally in line with the length of time a property has remained empty may function as an incentive for owners to bring properties back into use as a home.

He pointed out that there are currently 897 long term empty properties identified in Powys.

Tables in the report show that the numbers have fallen from 1,060 in 2017/2018 when a 50 per cent premium was charged, to 921 last year.

Cllr Thomas said: “The premium has had some impact in moderating the number of long-term empty properties, but that it has not delivered sustained or significant reduction.

“This indicates that a flat rate approach is not strong enough to drive change in more persistent cases.

“The stepped premium would link the level of Council Tax charge to the duration for which a dwelling has remained continuously empty and unfurnished.”

He added that no decisions on increasing the premium would be taken yet as further reports to consider the consultation results and an impact assessment would need to come before councillors before amendments to the premium can be made.

Cabinet member for highways and environment matters,  Cllr Jackie Charlton (Liberal Democrat – Llangattock and Llangynidr) asked: “Can I confirm that the consultation will go beyond the Powys boundary as a lot of people who have long term empty properties don’t actually live in Powys.

Head of finance Mari Thomas said: “The plan list to write to the owners of the empty properties and make them aware of the consultation so that they have every opportunity of responding and providing their views.”

Cllr Berriman: “We all know of empty properties in our area that can bring the quality of the area down, abandoned, unloved and deteriorating.

“It’s such a waste when they could house people and could address the housing issues we face which can be quite acute in some areas.”

He stressed this was not an exercise to make money for the council but to “incentivising landowners” to bring these properties back into use.

Cabinet went to a vote and unanimously agreed to hold the consultation.

It is expected that it will start soon and be held for six weeks over the summer.

By Elgan Hearn, Local Democracy Reporing Service