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Pickles to allow second home council tax discount cut | Pickles to allow second home council tax discount cut |
(about 2 hours later) | |
Owners of second homes in England could lose council tax discounts, under new plans to be announced by Communities Secretary Eric Pickles on Monday. | Owners of second homes in England could lose council tax discounts, under new plans to be announced by Communities Secretary Eric Pickles on Monday. |
Councils would have the power to reduce or remove council tax relief on second homes and empty homes. Second homes currently receive up to 50% discount. | Councils would have the power to reduce or remove council tax relief on second homes and empty homes. Second homes currently receive up to 50% discount. |
The money would be used to keep overall council tax bills down, he is to say. | The money would be used to keep overall council tax bills down, he is to say. |
Mr Pickles will also announce a review of rules under which "granny flats" are treated as separate properties. | Mr Pickles will also announce a review of rules under which "granny flats" are treated as separate properties. |
The communities secretary, who is due to announce a consultation on the plans, said he wanted to help "everyday families" with living costs. | |
He is expected to stress there are no plans to change the rules on council tax relief available for "special circumstances", such as homes left empty after a person has moved into a hospital or care home, or has died. | |
The communities secretary is also due to announce a review of rules under which tax inspectors treat self-contained annexes to family homes as distinct properties. The move would mean families who house a relative in an annex would no longer pay two bills. | The communities secretary is also due to announce a review of rules under which tax inspectors treat self-contained annexes to family homes as distinct properties. The move would mean families who house a relative in an annex would no longer pay two bills. |
'Protect family homes' | 'Protect family homes' |
Councils will also be encouraged to offer discounts to householders who pay their bills online. | Councils will also be encouraged to offer discounts to householders who pay their bills online. |
The government said the reforms would allow for a £20 reduction in the bill for a typical Band D property in England. The current average for a Band D property is £1,196. | The government said the reforms would allow for a £20 reduction in the bill for a typical Band D property in England. The current average for a Band D property is £1,196. |
Mr Pickles said: "Under Labour, council tax went through the roof. | Mr Pickles said: "Under Labour, council tax went through the roof. |
"This government has scrapped Labour's council tax revaluation and is helping (to) freeze council tax for two years. | |
"I want to do more to help everyday families with their cost of living, and protect family homes from tax increases. | |
"By removing the subsidised tax breaks for empty homes and second homes, we can cut £20 a year off families' council tax bills by treating everyone equally and fairly." | "By removing the subsidised tax breaks for empty homes and second homes, we can cut £20 a year off families' council tax bills by treating everyone equally and fairly." |