To ask the Secretary of State for Communities and Local Government what assessment she has made of how local authorities make use of the additional income raised through the discretionary council tax levy they can raise from second homes; and what proportion of resources are deployed to contribute to meeting local housing need. (150937)

Since April 2004 local authorities have had discretionary powers to set the council tax discount offered on second homes at any point between 10 per cent. and 50 per cent. and on long term empty homes at any point between 0 per cent. and 50 per cent. It is up to local authorities to decide how to use this power and what they do with the additional income generated.

Communities and Local Government have made no assessment of how local authorities make use of the income generated through reducing the discount.

To ask the Secretary of State for Communities and Local Government (1) how much her Department paid to local authorities to compensate them for the income foregone through the 50 per cent. council tax discount available for second home owners in each year for which records are available since 2000; (150938)

The distribution of formula grant to local authorities in England takes account of the circumstances of each authority’s area and its relative ability to pay council tax, expressed in terms of the council tax base. The calculation of a council’s tax base takes into account the Band D-equivalent number of second homes and has done so since council tax was introduced in 1993. Since 1 April 2004, although billing authorities have been able to reduce the council discount for second homes in their area (to between 10 and 50 per cent.), a discount of 50 per cent. has continued to be assumed for all authorities in calculating the tax base for the purposes of distributing formula grant.

Other things being equal, the smaller the council tax base of a council’s area, the larger its formula grant. This effect has, however, been modified in recent years by the application of grant ‘floors’, which guarantee a minimum percentage increase in grant each year on a like-for-like basis.

For this reason, and because formula grant is not hypothecated—i.e. it can be used for any purpose—it is not possible to calculate an amount of formula grant payable for second homes.

To ask the Secretary of State for Communities and Local Government (1) how many and which council tax collecting authorities which include domestic properties entitled to a council tax discount for second homes have not decided to use their discretionary powers to levy an additional 40 per cent. charge; (150939)

I have placed in the Library of the House tables showing which local authorities have levied either (a) all, (b) part, and (c) none of the discretionary additional charge in each year since 2004.

To ask the Secretary of State for Communities and Local Government how many and what proportion of all properties for which council tax is payable in each local authority were entitled to a second home discount in each year since 2000. (150941)

I have placed in the Library of the House the information requested for the number of properties classed as second homes and entitled to discount in each local authority in England for 2002 to 2006. Data prior to this are not considered sufficiently robust.