COUNCIL TAX

Council tax valuation of Houses in Multiple Occupation (HMOs): summary of consultation responses and government response [England]

In February 2023, the Department for Levelling Up, Housing and Communities (DLUHC) published a consultation seeking views on the council tax valuation of Houses in Multiple Occupation (HMOs). This followed concerns from landlords and tenants that individual rooms in HMOs have increasingly been assessed as separate units for the purposes of council tax valuation and therefore given their own council tax band.

The government wants to provide greater certainty and consistency in the way that HMOs are treated for council tax, and to ensure that HMOs are banded as one property and have one council tax band. It also wishes to ensure that liability for council tax remains with the HMO landlord, and that their tenants are not subject to individual council tax bills.

The consultation sought views on proposed approaches to achieving these objectives. It closed on 31 March 2023 and the government has considered all responses received.

This document Council tax valuation of Houses in Multiple Occupation (HMOs) - responses summarises views received during consultation and does not attempt to capture every point made. It deals with the questions posed in the consultation grouped by topic. It also sets out the government’s response to the consultation, including its approach to implementation.

Council tax for second and empty homes, and thresholds for non-domestic rates: consultation analysis [Scotland]

This summary https://www.gov.scot/publications/council-tax-second-empty-homes-thresholds-non-domestic-rates-consultation-analysis/  sets out key themes from the analysis of responses to a public consultation on potential changes to Council Tax for second and empty homes, and thresholds for non-domestic rates for self-catering accommodation.

The consultation ran from 17 April to 11 July 2023. In total 981 responses were received, 73 from groups or organisations and 908 from individual members of the public.

Consultation on a Fairer Council Tax: Phase 2 (Wales)

The Welsh Government are looking at different ways of bringing the Council Tax system up to date and making it fairer. This includes the potential to introduce new Council Tax bands.

As part of their consultation, they’d like views on:

• Different approaches for new Council Tax bands.

• Regular updates to Council Tax in the future.

• Discounts and exemptions.

• A more transparent system and a more effective appeals process.

The purpose of the reforms would be to ensure that Council Tax contributions are more fairly spread and reflect the latest information available about economic circumstances. None of the approaches outlined in this consultation represents a revenue-raising exercise.

The  https://www.gov.wales/programme-government and https://www.gov.wales/co-operation-agreement-2021 commit to reforming Council Tax to make it fairer and more progressive. It remains the firm intention of both the Welsh Government and Plaid Cymru to make progress on the journey to a fairer system in Wales.

A more progressive tax looks to lower the share of tax paid by those who are less able to contribute, making things fairer. This may be difficult to achieve all at once, so we’re asking for your views about the approach we take to make the system fairer. The evidence shows the changes we’re proposing would reduce longstanding wealth inequalities created by an unfair system.

This consultation seeks views on how and when we should make changes to the basic structure of Council Tax in Wales and update the property valuations used.

This consultation provides an update on reviews of these arrangements and proposals for:

• Modernising the service provided to taxpayers.

• Taking powers to reform the system of discounts and reductions over time.

• Committing to retain the one-adult discount and to keep the level of discount at 25%.

• Changing the treatment of empty properties to remove the obligation on councils to offer a 50% discount on most empty properties (councils will maintain their discretion on caravans and houseboats, on homes where the owner has died and job-related dwellings).

• Changing the time-limits for exemptions on properties in probate.

• Amending the language we use, and the system in place, to provide help to those with a ‘severe mental impairment’.

• Improving the Council Tax Reduction Scheme.

The consultation can be found at  https://www.gov.wales/sites/default/files/consultations/2022-12/46262-summary-responses.pdf.

Closing date for responses is 6 February 2024.

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ENFORCEMENT

Taking Control of Goods Regulations Consultation

The government is seeking views on amendments to the regulations that govern the recovery of fees that enforcement agents and High Court Enforcement Officers (formerly known as bailiffs) can recover when enforcing debts.

On 17 July 2023, the government published a review of the fees that enforcement agents (EAs) and High Court Enforcement Officers (HCEOs) can recover. The review announced the government’s intention to uplift those fees, following a consultation on a wider package of reforms about when the fees can be recovered.

This consultation seeks views on that package of reforms, which aims to ensure the sustainability of the enforcement sector, whilst tightening up the rules that EAs and HCEOs must follow to ensure that people in debt are given more opportunities to settle the debt at the earliest and cheapest stage possible.

The consultation can be found at https://www.gov.uk/government/consultations/taking-control-of-goods-regulations-consultation.

The deadline for response is 4 December 2023.

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NON-DOMESTIC RATE

Technical adjustments to the Business Rates Retention System in response to the Non-Domestic Rating Bill [England]

DLUHC launched a technical consultation on a set of technical changes needed to make to the Business Rates Retention System (BRRS) ahead of 2024/25. They are making these changes to the BRRS as a consequence of a provision in the Non-Domestic Rating Bill, which changes how business rates multipliers are calculated and applied. 

DLUHC have been engaging with sector representatives to gather views informally over the summer and welcomed wider engagement with this formal consultation.

The consultation can be found at https://www.gov.uk/government/consultations/technical-adjustments-to-the-business-rates-retention-system-in-response-to-the-non-domestic-rating-bill. 

The consultation closed on 2 November 2023. The Institute’s response can be found at https://www.irrv.net/documents/weblinks/2023/11/IRRV-Response-Consultation-Technical-Adjustments-to-the-BR-Retention-System.pdf.

Consultation on Non-domestic and Domestic Rating measures to support budget sustainability by raising additional revenue (Northern Ireland)

The Department of Finance has launched a 14-week consultation on the revenue raising potential associated with the removal of rating measures.

The consultation follows a direction from the Secretary of State for Northern Ireland Rt Hon Chris Heaton-Harris MP, directing Northern Ireland departments to launch public consultations on measures to support budget sustainability and raise additional revenue.

The Department is seeking views from those who may be directly affected and from the wider body of ratepayers. There were seven proposals for changes to rating measures identified by the Secretary of State:

• Domestic sector: Early Payment Discount, Landlords Allowance, Maximum Capital Value cap.
• Non-domestic sector: Non-domestic Vacant Rate relief, Industrial Derating, Freight Transport relief, Halls of Residence exemption.

The consultation can be found at https://www.finance-ni.gov.uk/rating-revenue-raising-consultation.

Closing date for responses is 13 February 2024.

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GENERAL

A library containing Institute responses to Consultations, Inquiries, Surveys etc. can be found at https://www.irrv.net/homenew/item.php?wid=20&iid=27305.