Second home owners are all set to pay more in council tax

SECOND home owners, owners of empty houses, some self employed people and some people on housing benefit will pay more council tax under plans approved by Blaby District Council.

Owners of holiday homes will lose their 10 per cent council tax discount while owners of empty houses will have to pay double the rate they would pay if the property was lived in.

After their first year of trading self employed people will be assessed as earning the minimum wage regardless of how much they actually earn. This brings council tax rules in line with universal credit rules. Self employed people on low incomes beyond their first year in business could pay more council tax as a result.

Council tax support rules will be brought in line with housing benefit rules which means claims can only be backdated for one month. At the moment in certain circumstances claims for council tax reductions can be backdated for six months.

The new council tax rules, approved by Blaby District Council’s cabinet executive, are expected to raise an extra £163,000 council tax. The amount will be shared between all the organisations which include Leicestershire Police, Leicestershire County Council and Leicestershire Fire and Rescue Service. Blaby District Council £14,750.

The changes come after a period of consultation which showed more than 80 per cent support for the increases in council tax for empty properties and second homes.

There was also a proposal for an increase on the current 15 per cent minimum for low income residents. But there was opposition during the consultation period and the plan was dropped.

Cllr Lee Breckon, portfolio is expected to get holder for community services, said: “These changes reinforce our aim to bring as many empty properties in the district back into use. These are properties many people would love to make their home, and the 200 per cent charge will hopefully be an incentive for owners.

“We want to thank everyone who gave us their views during the consultation and we took these into account when making our decision. We do not want to place any additional burden on vulnerable residents of the district. The welfare of our residents most in need is more important than cost savings.”

Blaby District Council is increasing the council tax collected because government spending cuts mean the council no longer gets money to fund council tax reductions for eligible households. Any money for council tax reductions must now come from Blaby District Council’s own budget.