Overview

This bill makes several amendments to the Local Government Finance Bill, primarily focusing on refining the calculation and distribution of funds related to council tax and non-domestic rates across different local authorities in England, Wales, Scotland and Northern Ireland. It also includes provisions for independent reviews of council tax reduction schemes and clarifies information sharing between government bodies and local authorities.

Description

The amendments cover various aspects of local government finance:

• Council Tax Reduction Schemes: Mandates an independent review within three years of the Act's implementation to assess the effectiveness, efficiency, fairness, transparency, and impact on localism of all council tax reduction schemes, and to recommend whether they should be integrated into Universal Credit.
• Long-Term Empty Dwellings: Modifies the definition of "long-term empty dwelling," allowing for a short grace period (at least six weeks) where the property is temporarily occupied.
• Penalties: Allows the Treasury to adjust penalties for inflation and establishes an appeals process to the valuation tribunal for penalties imposed under section 14C.
• Council Tax Base Calculation: Provides flexibility in calculating council tax bases for billing authorities, allowing for different rules for various special items.
• Information Sharing: Grants HMRC the power to share information with qualifying persons in Northern Ireland for rate-related purposes, subject to strict confidentiality provisions and penalties for unauthorized disclosure.
• Payment Procedures: Introduces regulations permitting deductions from central share payments to billing authorities. It also allows for payments between billing authorities and major precepting authorities (or the Secretary of State), even when initial calculations are based on estimates.

Government Spending

The bill's impact on government spending is not explicitly quantified. However, the amendments relating to payments between different levels of government could potentially shift funds, but the overall net impact on total government expenditure is not stated within the bill.

Groups Affected

• Local Authorities (Billing Authorities and Major Precepting Authorities): These will be significantly affected by changes in funding calculations, payment procedures, and information-sharing requirements.
• Council Taxpayers: Council tax reduction schemes are under review, potentially impacting eligibility and the amount of reduction.
• Homeowners with Empty Properties: Changes in the definition of long-term empty dwellings may affect council tax liability.
• HMRC and other Government Bodies: Increased responsibilities for data sharing and administrative processes.
• Valuation Tribunals: Increased workload due to additional appeals related to penalties.

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