Second home council tax rate provides millions in extra cash for the north but a motorhome pass scheme comes up short
Council tax on second and long-term empty homes has given Highland Council a major financial boost contributing to an £8.6 million windfall but its campervan and motorhome scheme has come up short.
In a report to the corporate resources committee, the local authority has conceded it is likely to miss its £31.4 million planned savings target this year by at least £2.5 million.
The “latest forecasted outturn” shows that by the end of August the council fell just £92,000 short of its £8.692 million income target but the massive hikes on council tax and empty properties are paying dividends.
Nearly 670 per cent increase in long-term empty properties in the Highlands
Doubling council tax on Highland holiday homes could rake in £2.8m for cash-strapped council
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Long-term empty and second homes have a 200 per cent liability with full water and sewerage so the council charges £2267 a year for a Band A property and £8086 for a Band H - that is more than double for regular residential homes.
The report states that has seen £5.42 million enter the local authority’s coffers this year, which has also helped more homes back into the market for permanent use.
“At the time of reporting, further analysis of the 212 reductions in second homes and long-term empty homes indicates 19 of those billed have moved to non-domestic rates; 13 per cent have been awarded council tax exemptions, e.g. agricultural,” stated the report.
“Most properties, 63.4 per cent were returned to occupation as main residences and staff accommodation, thus delivering the policy intent.”
The controversial campervan and motorhome scheme - which charges £40 a week to use council car parks - has not delivered financially while deeply upsetting businesses.
According to the council report, it has brought in £40,000 compared to a target income of £500,000. If so then it would be the equivalent of selling around 1000 passes but earlier the council refused to reveal the exact number.
The council acknowledged that the motorhome scheme “has attracted a mixed response” with “concerns raised by some campsite and caravan parks, and a small number of representative bodies”.
But it was also revealed that the council is right now “implementing infrastructure improvements which aim to address some of the issues associated with increasing levels of tourism.
“In response to the feedback received from residents, local businesses and tourists, and as part of our ongoing review of the scheme, improvements will include a focus on providing/improving wastewater and chemical disposal sites and investment into improving waste and recycling facilities at some car parks.”
Other big money spinners are fees and charges for things like planning, building warrants and licences for taxis, liquor, entertainment and short-term lets.
It drove revenue to the tune of £2.9 million - £300,000 more than its target.
