Second Homes: Council Tax
The question
To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the answer of 20 January 2026 to Question 105978 on second homes: council tax, whether he has made any assumption on changes in the adoption of (a) second and (b) empty home council tax premiums when estimating the council tax requirement over the three years of the settlement.
Answered by Alison McGovern
As part of the provisional local government finance settlement, the government has made estimates of changes to Core Spending Power between 2026-27, 2027-28 and 2028-29. This includes estimates of council tax requirements councils will set for those years which take account of estimated taxbase growth. These estimates, and the underpinning methodology are set out here.
The government has not made assumptions about changes in the adoption of second home or empty home council tax premiums. These decisions remain a matter for local discretion.
The way council tax in Core Spending Power is estimated is unchanged from previous Local Government Finance Settlements. The inclusion of council tax premium income in Core Spending Power does not affect how much local authorities receive through our assessment of relative need and resources, which assumes that authorities make no use of their discretionary discounts and premiums in order to protect the principle of local discretion. The Government will review the approach to calculating Core Spending Power ahead of the 2027-28 Settlement.
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