The Local Property Tax will provide a more sustainable funding model for local government, will devolve greater responsibility for financial decisions to the local level, and will help renew the relationship between the citizen and his or her local authority. The Government has been keen to ensure that equity is seen to be preserved in terms of the operation of the Tax and that therefore all sectors of society are required to make a fair and equitable Local Property Tax contribution. In that regard, the relationship between the value of a residential property and the amount of the Local Property Tax liability is important, as is liability for certain categories of social housing.
The Finance (Local Property Tax) Act 2012 sets out the position concerning residential properties and liability for the Local Property Tax. Under the Act local authorities and Approved Housing Bodies are, in general, liable for residential properties under their ownership. I am aware of the financial challenges facing local authorities. However, I am confident that the overall mix of central and local funding provided to the local government sector has been and will continue to be sufficient for the sector to deliver on its responsibilities.