Will loophole help Council Tax payers

COUNCIL Tax payers could benefit from a massive windfall if Rother closes a tax loophole.

As local collecting agency, Rother is calling on the county council and Sussex Police Authority to ensure that their share of the extra revenue is spent locally in the district.

Potentially, more than 778,000 a year would be generated within Rother if as collecting agency the district council took advantage of impending Government legislation.

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The news comes just as local authorities are coming under fire from taxpayers about predicted new Council Tax increases.

Currently, owners of second homes and holiday homes are entitled to 50 per cent Council Tax discount. Now in a move to release under-used properties on to the housing market the Government plans to gives local authorities power to make owners pay for local services.

If Rother reduced the discount to 10 per cent it would be able to keep more than 76,000 a year of the windfall. But East Sussex would benefit by 618,000, Sussex Police Authority by nearly 65,000 and parish councils by nearly 19,000.

At Monday's Rother cabinet, leader of the council Cllr Graham Gubby proposed that officers negotiate with the county and SPA.

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Rother is already talking to neighbouring councils on a proposed joint approach to county.

Cllr Gubby wants a county assurance that it will invest at least 200,000 of its bonus 618,000 on its services within Rother and wants two more police officers on the beat out of the SPA.

The cabinet had been invited by director of resources Dr Pav Ramewal to consider the implications of the impending new legislation.

The Government's aim is to encourage owners of empty properties to bring them back into use. The new measures could be law by April - just in time for the new council financial year..

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Under the proposals, Rother would be able to decide whether to impose different levels of discount on empty properties. It would also be possible to vary the discount between different geographical areas of the district.

Cllr Brian Kentfield said: "I think this is legislation which should have come in a long time ago...People may not be in occupation all the time but they still expect services to be available all the time."

Cllr Bill Clements said at present owners of second homes enjoyed the benefits of a 50 per cent blanket reduction across the country. This could now be reduced to 10 per cent. But the former county councillor was doubtful whether East Sussex would agree to earmark part of its share of the windfall for local spending.

Cllr Deirdre Williams was pleased that owners of second properties would be encouraged to bring them back into use. Cllr Stuart Earl said more homes would come on the market and social landlords were good users of private property.

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The cabinet voted at the leader's suggestion to defer making a recommendation on the revised level of discount until the director of resources had reported on negotiations with the county and the police authority.