Contact: Jon Pittam, ext 7400

1 Summary

1.1 Cabinet decided in February 2004 that agreement should be sought with all the district councils on ring-fencing the additional income from reducing the council tax discount on second homes for use on affordable housing with nomination rights for County Council key workers in the relevant district council area.

1.2 This report provides an update on discussions with district council officers. As they have indicated that differences amongst the district councils are likely to prevent them reaching agreement on a countywide approach, it is recommended that:

· discussions continue individually with the district councils, with affordable housing for County Council key workers remaining the first priority within an overall context of using the additional income for countywide priorities for community services

· final decisions on the use of the income are taken in February 2005 when setting the budget for 2005/06, taking into account the district councils' plans for the discount in that year.

2 Reason

2.1 Decisions are required on the use of the additional income in 2004/05.

2.2 Use of the income for affordable housing schemes meets aim 5 of the corporate strategy (improving services) and in particular the fourth short-term Cabinet priority of improving affordable housing and will also assist with aim 6 (developing councillors and staff) in the recruitment and retention of staff.

3 Other options considered and rejected:

3.1 To use the income for other purposes, including achieving an efficiency saving. That option can be re-examined in setting the 2005/06 budget after reviewing progress on reaching individual agreements with the district councils and their plans to apply discounts in 2005/06.

4 Conflicts of interest declared by the decision maker or a member or officer consulted

4.1 Not applicable.

5 Dispensation granted by the Standards Committee

5.1 Not applicable.

6 Reason(s) for the matter being dealt with if urgent

6.1 Not applicable.

Approved by: ................................... ... Date: .........................