Northumberland County Council is said to be keeping a close eye on the progress of a new bill that could bring a significant financial boost to the county by increasing tax on second homes.
The Levelling-Up and Regeneration Bill would allow the council to charge up to an extra 100% council tax on holiday homes.
With 3,502 properties in Northumberland classed as second homes according to the council, a 100% rise could bring in an additional £6.5m in income to the authority's coffers.
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Second homes and holiday lets have proved to be a controversial issue in parts of Northumberland, particularly in coastal areas. Earlier this year, Northumberland Labour claimed the increases in both had made it difficult for people to live in the area they grew up in.
Only last week, Coun Guy Renner Thompson, who represents the Bamburgh ward, said the village was in desperate need of permanent residents to secure the survival of services such as the village shop.
The purpose of the Levelling-Up and Regeneration Bill is to bring homes back into use for local communities. If it gets royal assent by March 31 next year, the option to increase council tax could be implemented by April 2024.
Council leader Glen Sanderson said: "It has been a growing concern to local residents that some of our villages have too many second homes whilst at the same time there is a shortage of local affordable housing.
“We have allocated very significant money to create more affordable housing this year but we want to do more. This proposed change would help bring some balance to local communities.”
Coun Sanderson was speaking after it was revealed the Government's finance settlement to local authorities would see Northumberland £4m better off than in previous years. The figure was described as "better than expected".
In recent weeks, there had been concern that the council would have to find additional savings if the settlement did not increase due to pressures on the authority's finances caused by inflation and the cost of living crisis.
The settlement includes a further £7.4m to Northumberland schools and a further £2m for High Needs/Special Educational Needs for 2023/24. Overall year on year for schools this is an increase in funding of 5.57%.
Coun Sanderson added: "This settlement was better than hoped for and should make our budget setting for the next year a little easier. I was pleased to note the boost in funding for schools, as investment in our young people is critical to the future prosperity of our county.
“However, the national financial picture remains very challenging and there will still be difficult decisions ahead, but this Government allocation is welcome news.”
The council's budget consultation remains ongoing, and residents can give their views on a range of budget and service issues on the council's website. The consultation runs until January 16, with the budget due to go before full council in February. A "refreshed" corporate plan will also be presented in in March.
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