Controversial debate on doubling council tax for Dorset's second homeowners postponed

By Francesca Evans

25th Jan 2023 | Local News

Second and holiday homes often exceed 25% of all properties in 'picture postcard' locations across Dorset
Second and holiday homes often exceed 25% of all properties in 'picture postcard' locations across Dorset

A controversial debate on whether council tax should be doubled for second homeowners in Dorset has been postponed.

The discussion was expected be held at this week's Cabinet meeting, but it was agreed to delay the item to involve as many councillors as possible before a vote at full council.

It has been recommended that the council should take advantage of flexibilities contained in the Levelling Up and Regeneration Bill which, if it becomes law, will enable the introduction of a 100% council tax premium on second homes.

As written, the Bill requires the council to make a decision a year in advance of introducing a premium on second homes, and so the earliest the change could be introduced is from April 2024. In order for the premium to be implemented in 2024, the government's Levelling Up and Regeneration Bill must have received Royal Assent by April 1 2023.

.According to the council tax database, there are 5,722 second homes registered in Dorset and a 100% premium could bring in an extra £9.5million revenue from second homeowners each year.

Another change proposed in the Levelling Up and Regeneration Bill would enable the council to introduce a premium where a dwelling has been empty for a year.

Deputy Leader of Dorset Council, Cllr Peter Wharf, was set to present the report on Monday. However, the Cabinet agreed that the report should be discussed by as many councillors as possible before it is taken to a vote at full council.

Cllr Wharf said: "Parliament is still considering the Levelling Up and Regeneration Bill, which will give us the flexibility to apply a council tax premium on second homes and other homes if they have been empty for a year.

"We originally had a report about this on [Monday's] Cabinet agenda so that a recommendation could be made to the February full council meeting.

"As the Bill is still being considered in Parliament we have a great opportunity to further discuss and debate the report locally."

The report will now be added as a new item to the Place and Resources Overview Committee on Thursday, February 9 to consider before providing recommendations to Cabinet on Tuesday, February 28. If agreed, it will then go to a full council meeting at the end of March, which has been brought forward from April so the proposed introduction of the premium isn't delayed.

Cllr Wharf continued: "This ensures as many different opinions as possible are heard before we make such an important decision, and demonstrate the transparency of local democracy in Dorset.

"I strongly encourage everyone to follow this report's committee journey by going to our website and watching our live and recorded video streams. If you have an opinion or question about the report, please contact us via the committee webpages or engage with your ward councillor to make your views known.

"I look forward to hearing – and participating in – the discussion around this report next month."

The controversial proposal has split the public, with some arguing it could stop second homeowners snapping up properties and forcing local residents out of the area, whereas other say that second homeowners make an important contribution to the local economy and should not be penalised.

West Dorset MP Chris Loder has spoken in support of the proposal, saying it would "make it fairer for local people".

His comments come after he met with Levelling Up Minister Michael Gove, then Secretary of State for Housing, Communities and Local Government, in Dorchester in May 2022, and urged for the legislative reforms needed for these changes to be made.

He said: "These changes will benefit West Dorset on two levels. Firstly, it will provide much needed income for the council for a fairer tax policy. And secondly, it will encourage property owners to think again before leaving their houses empty at a time where there are hard working local people struggling to find a home or get on the housing ladder.

Tese reforms are the basis of the Levelling-Up agenda: empowering communities to act in the interests of fairness and sustainability. I have always maintained that to sustain our community infrastructure well into the future, we need to incentivise and support local people to stay and live in our communities.

"I am pleased the government and the council are fully grappling with this fundamental point and I look forward to assisting however I can in making this work for the benefit of West Dorset"

Mr Loder has also secured £135,000 from the government for Dorset Council to rework its Local Plan, with the hope of avoiding mass developments like the 4,000 homes proposed in the North of Dorchester.

     

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