Updated 1:37am 16 January 2013

Liverpool Council to scale back council tax discounts to being in £2.3m

Liverpool Town Hall
Liverpool Town Hall

BANKS, slum owners and people with  second homes will be expected to stump up more than £2m to help plug the city’s council tax black hole.

The cash will go towards making up  the £6.2m deficit that will be left when  the government makes a 10% cut in the  amount of money it gives the city to  cover support for people who do not  have to pay the full charge.

Banks will be expected to start  paying their way and stump up for  homes they have repossessed.

City leaders said the move showed  that all sections of society will be  expected to share the cost of running  Liverpool, following the news that  44,000 low-income households in the  city would be losing council tax benefit  under the new system.

Currently, some owners in the city  enjoy discounts on the council tax  charge, but by scaling back or  scrapping these perks the council  should bring in up to £2.3m.

The biggest haul will come from the  owners of properties that are empty and  uninhabitable.

The council expects to bring in £1.2m  from reducing from six months to six  weeks the amount of time the owners  receive a 100% discount.

Landlords of furnished houses or  flats that are unoccupied will now be  liable to pay 75% rather than 50% of the  charge so the council can bring in an  extra £200,000.   Deputy mayor and  finance chief Cllr Paul Brant said: “We  are confident that we will be able to  achieve these collections, as ownership  of property is easy to establish.

“We are going to continue to try to  ensure that those who can afford to pay  make a fair contribution towards  helping with the cost of running  the city.”

Around £19,000 will come  from mortgage lenders, who  are currently exempt from  paying, while the 247 people  who have property in the  city that is classed as a  “second home” will have  their discount reduced from  10% to 5% to generate  £16,000.

But the council is expected  to stop short of charging a  “premium” on empty  homes owned by  developers in housing market renewal  areas, prompting opposition figures to  claim city bosses were not going far  enough.

The report to go before cabinet states  that “these (955) long-term vacant  properties should be exempted from the  premium as redevelopment work is  planned or is already under way.”

Liberal group leader Cllr Steve  Radford said: “I don’t think  there should be different  standards for different types  of property owner.

“That could possibly  leave the council  vulnerable to a legal  challenge, but I doubt  they’ve even thought of  that.  It should be one  simple approach across  the board.”

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