Extra homes could net £5m tax windfall

By Tony Earnshaw
Local Democracy Reporter

HOUSE-BUILDING across Kirklees could net the council an extra £5m over the next three years.

The Labour-led authority is tasked with building 31,000 new homes by 2031 as part of its Local Plan, with some developments already under way.

It expects an average increase of 1,500 properties per year with 1,100 homes paying council tax at Band D.

If the council imposes a 3.99 per cent increase to £1,596.82 in 2020/21, that could mean more than £5.18m pouring into its coffers.

The council’s budget strategy update indicates annual uplifts of 1.99 per cent in 2020/21 – equivalent to £3.6m – with similar uplifts over the next three financial years.

But the council’s spending review allows it to raise up to another two per cent via a precept to pay for adult social care. For Band A properties, that represents an annual increase of £40.15, or 77p a week. At Band D, it equates to an annual increase of £60.23, or £1.16 a week.

Coun John Taylor, deputy leader of the Conservatives on Kirklees Council and group budget spokesman, said: “A figure of £5m sounds like a significant increase over a three-year period, but we need to recognise that with additional households comes additional cost to the council, whether that be supporting additional children, emptying bins or providing social care.

“Whilst this is an income increase, there will also be an increase in costs, which are not so easy to calculate.”

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