By Elgan Hearn, Local Democracy Reporter
Council Tax discussions are underway at Powys County Council who have said their finances won’t receive any financial boost in next year’s budget from tax hikes on holiday homes or long term empty properties.
Finance Portfolio holder, Cllr Aled Davies, stressed that it “would be unlikely” that any changes to Council Tax charges for holiday homes or long term empty properties would be part of next years budget.
The discussion took place at a meeting of the Cabinet on Tuesday where the Council Tax base was set.
Council leader, Cllr Rosemarie Harris said: “We’re still out to consultation on possibly increasing the premium on long term empty homes aren’t we?”
Head of Finance, Jane Thomas, said: “Yes we are, part of the consultation has ended and we’re assessing the outcome of that ready for cabinet to consider.
“The second part of the consultation draws to a close in the next couple of weeks, and then we will be providing a report on that for a later date.”
Cllr Davies said: “Could I stress there are two distinct elements to that consultation. One is on long term empty properties and the other is on the second home premium.
“We must not confuse the two, and it is unlikely that the outcome will come in the next financial year because we need to give people notice to adjust their affairs if there is going to be a change or not.”
A proposal to increase the premium Council Tax charge on Holiday/Second Homes to 75% above the normal rate is out to consultation until December 14.
Long term empty properties are liable for a Council Tax charge of 50% above the norm and a consultation was held from September 18 to October 30 to essentially find out why they are empty?
This could help inform a future decision on the premium for this type of property.
Setting the Council Tax base is an annual legal requirement, and starts the process which will usually finish in late February or early March when the Budget and Council Tax for the next financial year is voted on at a full council meeting.
This year a 0.1% reduction in adjusting the collection rate to 98.4% has been factored in to the process.
Ms Thomas, said: “In terms of the reduction of collections to 98.4%, that assessment has been done, mindful of collection in past years and also the impact of the pandemic and collection rate in the current year.
“I’m comfortable that the collection rate is reasonable and prudent and I can support the recommendation.”
The report was approved unanimously.
This year the Powys County Council budget of £269 million saw £184.3 million come from the Welsh Government, with the rest being made up from Council Tax and specific funding grants.
Powys, along with all other Welsh local authorities, will find out just before Christmas what funding they will receive from the Welsh Government for 2021/22.
They will publish their draft budget on December 21.