Extra council tax not to be used for housing
Cornwall Council's leading Cabinet has refused to commit to using extra money from charging double council tax on second homes on providing affordable homes for local people. New rules will allow councils to charge a 100% premium in council tax on second homes from April 2024.
However, calls from some councillors to ringfence any extra money to help build and provide affordable homes for local people have been rejected by the Conservative Cabinet. When the council agreed to scrap a 25% council tax reduction for second homes it decided that all of the money should be spent on affordable housing.
It has been estimated that the rule change could generate an additional £ 27 million a year for Cornwall Council. But, despite a cross-party overview and scrutiny committee agreeing that the double council tax income should be protected for providing local housing, the Cabinet has said that the money will instead go into the council's general budget.
At a meeting of the Cabinet this morning, where it was agreed that the council would want to apply the premiums on second homes as soon as legally allowed, councillors questioned what the money would be spent on.
Independent councillor Tim Dwelly said that while he welcomed the Government allowing local councils to charge extra council tax on second homes he asked why there was no mention in the report about "using this money to help tackle the housing emergency".
Council deputy leader David Harris said that it was an issue that councillors had discussed with officers but had decided that the money should not be ringfenced for any particular spending.
He said that the council already spends a lot of money on housing and has had to increase its spending in recent years. He said that with the council having to provide a lot of services it would be "wrong" to ringfence money from increased council tax on second homes for any particular use.
Independent group leader Loic Rich also asked about the use of the money and said that with the council currently spending huge amounts on temporary accommodation the extra money from second homes could provide affordable housing for local people.
Olly Monk, Cabinet member for housing, said that the issue of providing affordable homes was not one of money but of having land and planning permission to build homes. He said that there was sufficient money to provide affordable homes and that he "reluctantly" agreed that it would not be right to ringfence the extra income on affordable housing.
As well as being able to charge second home owners extra council tax the proposed new laws would allow councils to charge extra council tax on homes that are left empty for more than a year. They are currently allowed to charge extra tax when homes are empty for more than two years.
The new rules are set to come into force in April 2024 but only if the legislation gains Royal assent by March 31, 2023. Councillors said they were urging all MPs to make sure that the deadline is met.
Cllr Harris also said that a request from councillors to seek permission to charge triple council tax on second homes would not be pursued.
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