Big council tax changes proposed for Bristol

The city council is coming after second home owners

The city council wants to up the tax by the maximum possible without a referendum
Author: Adam Postans for Local Democracy Reporting Service / James DiamondPublished 20th Jan 2023

A 4.99 per cent rise in council tax for Bristol residents is set to be approved next month, as city council leadership also debates doubling the tax on second homes.

City council cabinet members are expected to rubber-stamp the proposed 4.99 percent increase on Tuesday, January 24, ahead of February’s full council which will set the authority’s annual budget.

It comprises two per cent ring-fenced for adult social care and 2.99 per cent for general services and is the maximum allowed by the Government for 2023/24 without a local referendum.

Bristol City Council’s portion makes up by far the largest chunk of the bill, with the rest being levied by the Avon & Somerset police and crime commissioner, who is proposing an additional £15 a year for a band D household, and Avon Fire Authority, which is asking for a £5 increase for that middle band property.

Excluding the police and fire precepts, here is what the council’s proposed increase means for you:

  • Band A – proposed 2023/24: £1,330.73 – Annual increase: £63.27
  • Band B – proposed 2023/24: £1,552.52 – Annual increase: £73.80
  • Band C – proposed 2023/24: £1,774.31 – Annual increase: £84.35
  • Band D – proposed 2023/24: £1,996.09 – Annual increase: £94.87
  • Band E – proposed 2023/24: £2,439.68 – Annual increase: £115.98
  • Band F – proposed 2023/24: £2,883.25 – Annual increase: £137.05
  • Band G – proposed 2023/24: £3,326.83 – Annual increase: £158.14
  • Band H – proposed 2023/24: £3,992.20  – Annual increase: £189.77

Income from council tax comprises more than half of the local authority’s general fund revenue budget, which is the main pot of money for running its mainstream services.

There is a council tax reduction scheme for the poorest residents with discounts of up to 100 per cent.

Bills will also be twice as much for the owners of homes left empty for one year instead of the current two, if the proposals for second homes get the go-ahead at full council in February.

Bristol City Council wants to take advantage of the Government’s Levelling Up and Regeneration Bill which is currently going through Parliament.

The new law, if approved, aims to encourage empty properties to be brought back into use for the local community and is expected to come into force from April 2024.

It would give local authorities the power to add premiums of up to 100 per cent on council tax for homes that are substantially furnished but are not the owner’s main place of residence – commonly known as second homes – on top of the council tax that is already charged.

If the measures go through, it would give anyone affected a full year’s notice.

A report to cabinet on Tuesday, January 24, which is set to recommend the draft budget to full council, said the second-home premium was expected to bring in about £3 million extra every year to the council, which is making cuts and savings as it faces a £20.3 million funding shortfall in 2023/24 and even more beyond that.

It says records indicate Bristol has about 1,500 properties left empty between one and two years and about 300 over two years, which are already subject to a premium.

The number of second homes is not currently monitored as they already incur normal council tax bills, but estimates suggest there are roughly 2,500, the report says.

It says: “The introduction of a premium for second homes might encourage council tax payers to explore whether their property could be transferred to business rates, and thereby benefit from small business rate relief as a way of avoiding the higher charge.

“From April 2023, the Valuation Office Agency will only rate domestic properties for business rates if they are available for short term lets for at least 140 days in total over the current and previous tax years and have actually been let for short periods totalling 70 days in the last 12 months.

“This should ensure that any properties transferring from council tax to business rates relate to genuine circumstances where the property is being utilised for business purposes in accordance with legislation.

“Adopting council tax premiums on empty properties is one way of incentivising property owners to bring those properties back into use at the earliest opportunity.”

The report says the government’s bill includes provisions for the secretary of state to exclude certain homes from the premiums or specify a different percentage limit of 100 per cent, which would reduce the bills and the amount of money the council earns.

Conservative-run South Gloucestershire Council is proposing the same increases in its budget.

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