Dorset Council plans to double tax on second homes delayed by government

By Francesca Evans

28th Mar 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 final decision on proposal to double council tax on second homes in Dorset has been delayed by the government.

Dorset Council's Cabinet voted unanimously to adopt a policy to double council tax on the 5,700 second homes across the county, and to implement an empty home surcharge. The two measures are likely to bring in an extra £10million a year.

The council is hoping to take advantage of flexibilities in the government's Levelling Up and Regeneration Bill which, if it becomes law, will enable the introduction of a 100% council tax premium on second homes.

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 – but that is now looking unlikely.

A final decision was set to be made at a full Dorset Council meeting on Thursday, March 30 to fit in with the government timeline, where it was almost certain to be approved.

However, Dorset Council now understands from government that there is no likelihood of the Levelling Up and Regeneration Bill becoming law before the end of March, and therefore a decision on this matter cannot be taken by full council.

Cllr Wharf, deputy leader of Dorset Council, said: "The proposal to introduce council tax premiums on second homes and empty properties continues to be something we are keen to explore, following constructive discussions at Overview Committee and Cabinet.

"We will watch the progress of the government's new Levelling Up and Regeneration Bill closely and bring this to full council once the legislation has passed."

As the main item of business has been withdrawn from the agenda, Thursday's full council meeting has now been cancelled.  

     

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