FINANCE

Pickles to offer 'middle England' council tax relief

Ministers to announce measures including giving residents longer to pay and help to evade extra charges for ‘granny flats’.

Ministers are poised to announce measures to help ‘middle England' with council tax bills - including giving residents longer to pay and helping them escape extra charges for ‘granny flats'.

Communities secretary, Eric Pickles, will also reaffirm that council tax bands will not be reviewed before the next election, and that householders who pay their council bills on line could start receiving discounts, The Daily Telegraph has reported.

However there is bad news for second homeowners, as Mr Pickles is expected to give councils the ‘flexibility' to reduce or remove entirely the current system of tax relief on second homes.

Currently, local authorities can offer residents the option of paying councils tax bills over 10 months, however Mr Pickles will announce that households will soon be allowed to pay through 12 monthly instalments.

‘This is a move to help "middle England", and hard-pressed families up and down the country through these tough times,' Mr Pickles is reported to have said.

He is also expected to change the rules on ‘granny flat'-style annexes to prevent residents being handed extra charges. At present, unoccupied annexes are liable to land homeowners with a second council tax bill.

The secretary of state also raised the possibility of discounts for those who pay online, and the removal of tax discounts for second homes.

At present second-home discounts range from 10%-50% of the council tax bill and can be worth hundreds of pounds a year - costing councils millions of pounds a year in lost revenue.

‘By removing the subsidised tax breaks for empty homes and second homes, we can cut £20 a year off families' council tax bills,' Mr Pickles told The Telegraph.

‘Councils should make it easier to pay bills, and offer the same discounts for electronic billing that other companies offer as standard – this will cut paperwork and help reduce tax bills.'        

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