Wolverhampton homeowners could pay council tax on empty properties

The Labour-run council is hoping to save £400,000 a year by getting rid of the empty property discount, which gives homeowners a grace period of 21 days after a property becomes empty.

Council bosses say the changes are a necessary part of a new batch of £22 million worth of cuts the authority needs to make by 2017.

The TaxPayers Alliance has branded the proposal 'simply inappropriate'.

Councillor Andrew Johnson, finance chief at Wolverhampton council, said: "There's £400,000 that can come come from getting rid of the empty property discount.

"This decision has been made simply to increase income because of the budget situation.

"It is not something we would ideally want to do and it will affect our Wolverhampton Homes properties.

"It is all part of the overall budget savings process, we are trying to maximise our income as well as making cuts to meet government targets."

A review will also be taking place to make sure that people who claim the 25 per cent single occupancy discount are living on their own and entitled to it.

The number of people claiming the 25 per cent council tax single person household discount in Wolverhampton is 38,000.

Tory leader Councillor Wendy Thompson said: "These proposals show just how desperate the council is, yet for years they have failed to collect large amounts of council tax that should have been paid."

Fellow Tory Councillor Paul Singh added: "Getting rid of the empty property discount will unfairly penalise a lot of people.

"If you have a house where an elderly relative has passed away the family will have to start paying council tax immediately.

"It takes time for people to get their affairs in order in these circumstances, but people could easily see the bills starting to add up during what is already a difficult time."

Jonathan Isaby, chief executive of The TaxPayers Alliance, said: "Councils should be looking to reduce spending, rather than by increasing taxes.

"Though the economy is growing, many people are still feeling the effects of the recession and higher tax bills are simply inappropriate.

"Many of these exceptions, though complicated, are there for a reason and they shouldn't be removed without serious consultation."

The plans will be considered by the council's cabinet in October with a view to putting them forward as part of next year's budget.

Earlier this year the authority increased council tax by 1.99 per cent - the minimum allowed under law without the need for a referendum.