Delays to bill in Parliament postpones council tax increase for second homes, costing council £6.5m

The Levelling-up and Regeneration Bill, if passed, will allow councils to charge a 100% premium on council tax for properties left empty for part of the year.

Northumberland County Council had already signalled it would make use of this power, which could raise an additional £6.5m annually.

If the bill had received royal assent by the start of April 2023, the county council would have been able to implement the rule change from April 2024.

Despite passing the House of Commons, it remains at the committee stage in the House of Lords, and so has not passed into law in time.

The council will therefore miss out on this extra revenue until 2025.

Glen Sanderson, leader of Northumberland County Council said: “The council recognises the impact second home ownership has had on local residents and we are looking at this as an opportunity to help make sure more housing is available for local people, especially in our rural and coastal communities.

“We did not include income with regard to this matter into our Medium-Term Financial Plan as the legislation had not been passed.

“Should Parliament approve this legislation, then it is something we will look to take up.”

Second home ownership has been a contentious issue in the past, particularly in rural areas of Northumberland, due to the impact on the housing market for local people and the reduced footfall to local businesses when they are unoccupied.