Second and empty homes in Cornwall could have to pay DOUBLE council tax
The new rule is due to be announced in the Queen's speech this week
People with second or empty homes could have to pay DOUBLE council tax in Cornwall.
Cornwall Council will be given the power as part of government plans to invest in local communities and drive levelling up across the country.
The new rules are due to be announced in the Queen’s Speech this week.
Equipped with new discretionary powers, Local Authorities in England will be able to levy a premium of up to 100% on council tax bills for second homes – which are furnished but not occupied as a sole or main residence – empowering them to determine how best to raise additional revenue for their communities.
As well as supporting and improving services, this extra funding could be used to help ensure council tax is kept low for local residents.
Homes left empty could also see their standard council tax rate doubled sooner – after 12 months rather than two years – in a move that will discourage owners from leaving properties vacant for a long time, while injecting money back into local areas.
Given there are currently around 72,000 homes that have been empty for more than two years in England, the revamped system goes much further than existing rules, where homes can lay dormant for up to two years before councils can take action.
In addition to having the power to apply greater premiums at a level of their choice, Local Authorities will enjoy flexibility on how to spend the funds raised and can decide to prioritise keeping council tax bills low for local households. This will also help deliver the infrastructure that communities really need, including genuinely affordable housing, social care and children’s services.
Steve Double, MP for St Austell and Newquay, said:
“At the beginning of the last session of Parliament I spoke in the Queen’s Speech debate on the housing crisis in Cornwall, calling on the Government to do more to help places like Cornwall, and I am pleased to see that this will be a major feature in the Queen’s Speech for the forthcoming session of Parliament.”
“I have long campaigned for the Government to take action in addressing the imbalance that we see with second homes and holiday lets dominating many communities in Cornwall. And the Government has acted, both in closing the loophole that allowed some second home-owners to unfairly get away without paying domestic or business rates for their properties earlier this year, and now giving local authorities like Cornwall Council the powers they need to levy a premium of up to 100% on council tax bills for second homes and empty homes. In this difficult time for everyone, these powers will allow local councils to use this levy to invest back direct into local services for hard-working Cornish taxpayers, while the closure of the loophole on holiday lets earlier this year will mean that genuine holiday let businesses will not be affected.”
“Thank you to the Government for once again listening and delivering for Cornwall.”
Welcoming the news Truro and Falmouth’s MP, Cherilyn Mackrory, said:
“This is something I have long-campaigned for, both during my time as MP for Truro and Falmouth but also when I was a Cornwall Councillor. Having been an elected representative at both levels of government I fully understand how beneficial it would be for local authorities like Cornwall Council to be able to have these powers, which will generate income that can then be put direct into running and improving local services. This is an argument I have been making, along with my Cornish MP colleagues, for some time.”
“The powers announced in the Queen’s Speech will give councils the ability to levy a premium of up to 100% on council tax bills for second homes – which are furnished but not occupied as a sole or main residence – empowering them to determine how best to raise additional revenue for their communities.”
“It has also been confirmed that another big issue that we have in Cornwall, empty homes, will be addressed, as homes left empty could also see their standard council tax rate doubled sooner – after 12 months rather than two years – in a move that will discourage owners from leaving properties vacant for a long time, while injecting money back into local areas.”
“In addition to having the power to apply greater premiums at a level of their choice, Local Authorities will enjoy flexibility on how to spend the funds raised and can decide to prioritise keeping council tax bills low for local households. This will also help deliver the infrastructure that communities really need, including genuinely affordable housing, social care and children’s services.”
“Along with the announcement of the closure of the holiday let business rates loophole earlier this year, I am pleased to see this Government once again listening to concerns raised from Cornwall and committing to take action. The growing numbers of empty homes, many of them second homes, across Cornwall, are a legitimate concern when it comes to keeping our communities vibrant all year round and I hope you will agree with me that this is good news for us all.”
Cornwall Council leader, Linda Taylor, said: “Second homes that stay empty for most of the year are increasingly becoming a real threat to the viability of so many communities across Cornwall, particularly given the housing crisis which has been exacerbated by international events, including the COVID-19 pandemic.”
“At Cornwall Council we have been calling for the Government to allow us additional powers to do something about this, and this levy does just that. It will provide us with extra revenue to go back into funding council services to benefit the residents of Cornwall.”
“We welcome this news and thank our six Conservative Cornish MPs for making the case alongside us, and the Government for listening and acting accordingly.”