Refund to be issued for additional council tax on second homes

Warwick District Council is returning additional council tax charges it imposed on second homes after discovering errors in how the policy was applied. Since April 2025, the council had been charging double council tax on properties that are "substantially furnished but have no resident."

The issue came to light after a member of the public raised concerns, prompting a review that revealed the council had "acted outside the law." The original decision to introduce a premium was made by full council in February 2023, though the exact rate was not defined at the time. Later, in February 2025, the council's cabinet composed of Green and Labour councillors overseeing major services approved the double rate.

Legal advice subsequently highlighted that the cabinet had not properly considered factors outlined by the government in November 2024. These guidelines require councils to evaluate the number of long-term empty homes, the reasons certain homes cannot be used as main residences, and potential effects on the local economy and services before applying new taxation powers. Additionally, the full council had not voted on the final double rate.

As a result, the council's monitoring officer, Graham Leach, concluded that "the council did not meet all its obligations." At a recent council meeting, Chair Councillor Naveen Tangri confirmed that "immediate action needs to be taken to remedy this situation."

The council has suspended the policy and will restart the process. A public consultation is scheduled for February 2026, with the revised policy expected to take effect from 1 April 2027. Restarting the process is estimated to cost 45,000 annually and may require additional staffing due to increased workload.

Author: Sophia Brooks