HOMEOWNERS who have extended their properties should be forced to pay more in council tax, claims a council leader.

Under the current system, houses can be extended without the council tax band changing until they sell the house - something Southend Council’s deputy leader Ron Woodley called “morally and financially wrong”.

However, the Independent councillor also criticised the Government for not handing councils the power to charge developers the tax for properties they have planning permission for but have not built.

In a letter to the Local Government Association, he warned councils are losing out on millions of pounds of income.

Mr Woodley said: “If the Government were to give us the opportunity to look at council tax banding on properties that have had work done to them then that would, I estimate, bring in an extra £3million.

“When people make major alterations they are likely to stay there for another 20 or 30 years, yet they will be paying the same council tax and absorbing all the additional council services that the extension and potentially larger family brings.

“Morally and financially it is wrong.”

He admitted his opinion may be unpopular but said it is “not about getting elected but doing the right thing”.

It is an issue that is likely to gain further prominence if the Government greenlight planning reforms that will allow homeowners to extend their property with up to two additional storeys.

Mr Woodley said the reforms are not addressing the real problem, which is developers failing to build the homes they have planning permission for.

He continued: “The Government should say that if plans don’t happen, the council can start charging council tax on the unbuilt properties. As soon as you do that, developers will start building out those plans and then you will get more homes.”

As an example, he pointed to the long-delayed £100million Marine Plaza plan which is set to bring almost 300 flats to the seafront. However, the developers have stalled several times since getting planning permission in 2015.

Mr Woodley claimed that if the council had the power to charge even the lowest band of council tax on the unbuilt flats, it would generate an income of almost £600,000 a year.

'Long overdue review'

A REVIEW of council tax is “long overdue” but the entire system needs scrutiny, say Southend’s Conservative Group.

The comments come in response to ideas put forward by Independent councillor Ron Woodley who wants to see residents charged more after getting an extension to their house.

Developers would also be charged council tax on properties they have not built.

The Tories say wider reforms to council tax are needed instead of the ‘piecemeal’ ideas put forward by the council’s deputy leader.

Councillor Meg Davidson, deputy leader of the Conservatives, said a national review of council tax is “long overdue” but it needs to look at the entire system rather than just one or two aspects.

Ms Davidson said: “Any change to the current system would require national legislation.

“Council Tax in England is still based on 1991 property values, so a review of the system is probably well overdue.

“I would not be in favour of a piecemeal approach to improving the current council tax system.

“Mr Woodley’s suggestion would be best considered in the context of a review of the entire system.”

However, she did agree that charging developers council tax for any unbuilt properties is an “idea worth exploring”.

She added: “I would not necessarily agree that this is the only factor in delays in building new houses, but it is an idea worth exploring.

“As always, we have to get the balance right between incentivising developers without putting them off entirely.”

The Government’s changes to the planning process, which the prime minister has called the biggest reform “since the Second World War”, is currently out for public consultation.

Ms Davidson added that she would “encourage as many people as possible” to take part before the submission deadline of October 29, 2020.