HC Deb 23 November 2001 vol 375 cc507-8W
Mr. Drew

To ask the Secretary of State for Transport, Local Government and the Regions when he will consult on the proposed changes to the council tax discounts on second and long-term empty homes. [18381]

Planning applications and appeals against refusal: England 1990–91 to 2000–01
Planning applications1 Appeals against refusal2
Decided Granted Refused Received Decided Allowed Percentage of appeals allowed
2000–01
North East 14.7 13.6 1.0 0.3 0.3 0.1 42
North West 44.3 40.0 4.2 1.1 1.0 0.4 39
Yorkshire and the Humber 34.5 30.8 3.6 0.9 0.7 0.3 37
East Midlands 35.0 31.7 3.3 0.8 0.7 0.3 35
West Midlands 37.0 32.5 4.5 1.1 0.9 0.3 35
East of England 55.0 48.2 6.8 1.8 1.6 0.5 33
London 53.5 43.8 9.7 2.2 1.9 0.6 32
South East 89.0 77.1 11.9 3.3 2.9 1.0 33
South West 56.7 49.8 6.8 1.8 1.6 0.5 33
England 419.6 367.7 51.8 13.4 11.6 3.9 34

Mr. Raynsford

I am today publishing proposals to give local authorities discretion to reduce or end the council tax discounts which owners of second and long-term empty homes currently receive.

The Government's proposals are set out in "Council Tax: a consultation paper on proposed changes for second homes and long-term empty homes". It fulfils the Government's commitment, made in the rural White Paper last year, to consult on this issue.

The Government are also seeking views on how the extra revenue raised should be used: whether it should be retained locally and whether it should be used for specific purposes such as housing. We are also proposing that councils should have the discretion to give council tax discounts for local reasons such as where homes are hit by flooding or in cases of individual hardship.

Our proposals would give local authorities the flexibility to choose the best option for their communities.

In some areas, second-home owners bring a much-needed boost to the local economy but, in other areas, a high demand for second homes is pricing local people out of the property market and undermining the viability of local services. Equally, homes left empty for long periods can blight local communities and encourage crime and antisocial behaviour. The proposals we are announcing today could be used to help encourage owners of empty homes to bring them back into use.

More than half a million properties which are no one's main residence currently receive a 50 per cent. council tax discount. Over half of these are long-term empty properties. Potentially, up to £200 million could be raised in England by ending the council tax discounts on second and long-term empty homes.

The Government are asking for responses to their consultation by 15 February 2002.