COUNCIL TAX DISCOUNT ON SECOND HOMES

1. Following a formal consultation process, the Government proposes to introduce legislation relating to changes to council tax discounts in England. One of the key changes relates to council tax discount on second homes. In summary, the Government proposes that billing authorities will be permitted to reduce council tax discounts on second homes from 50% to a minimum of 10% in all or part of their district. Any additional council tax raised will be retained locally by the billing authority and any major precepting authorities, such as county councils and police authorities. The Hampshire average is 78% for the County Council, 8% for Hampshire Police Authority, and 14% for the local district councils. The Hampshire Fire and Rescue Authority would gain a share, at the County Council's expense, when it becomes a precepting authority in 2004/05. Tax-based information for 2003/04 suggests that there are 4047 second homes in Hampshire. Assuming a similar figure for Band D equivalents, an additional income of up to £1.2m would be available to the County Council if all districts were to reduce the discount for all second homes by the maximum.

2. Following initial discussions at officer level with Hampshire District Councils, the Cabinet has agreed that efforts should be made to develop a protocol with the Districts to ensure that the additional revenue raised by reducing council tax discount on second homes is targeted in line with county-wide priorities at community services and local public service agreements through the local strategic partnerships involving the County Council, Hampshire Police Authority, the relevant district council and Hampshire Fire and Rescue Authority when the latter becomes a precepting authority.

T.K. THORNBER, CBE

Leader

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