This is Council Tax Information Letter 2/2003. The topics covered in this letter are:

The Local Government Bill starts its Committee stage in the Lords on Monday 2 June. We expect the Committee to reach the council tax clauses in the week commencing 9 June, Currently, we do not expect the Bill will pass all its remaining stages before the summer recess.

In view of this, we are considering starting consultation on draft council tax regulations, (one set relating to discounts for second homes and long term empty dwellings; the other relating to enforcement) once the Lords stages have been completed but before Royal Assent.

The consultation is on the wording and the effect of the regulations themselves rather than a further consultation on the principle of ending detailed prescription or allowing e-billing. The closing date for comments on the draft regulations is Friday 20 June.

Nick Raynsford announced on 15 May that the Government recognises the need to address the problem of council tax liability for self-contained units within care homes, in the light of appeals involving homes run by the John Grooms organisation and the Royal National Institute of the Blind.

The Government has decided that, in future, where individuals live in registered care homes, in accordance with part 2 of the Care Standards Act 2000, they should not be separately assessed for council tax. The care homeowner, rather than individual resident should be liable.

We will shortly be consulting on the necessary changes that will be needed to the relevant statutory instruments. Details of the consultation will be included in a future CTIL. Subject to the results of the consultation exercise, Ministers aim to change the legislation later this year.

We understand that a number of authorities whose collection rates had improved over the last few years may now be experiencing an increase in the number of reminder notices they are having to issue or liability orders they are having to obtain. We would be interested to hear what the experience has been so far this year in respect of your area.

We would also be interested to hear from you whether there are any significant numbers of people who are refusing to pay this year's council tax or who are only paying the amount that they paid last year.

Any information you provide is outside the scope of the regular quarterly returns and will be treated in confidence.

I would like to remind local authorities that while we are happy to explain the policy behind the legislation, it is not our role to provide legal advice on the interpretation of legislation or to advise on what might be an appropriate course of action in any particular situation. In any event, the views of the Office are neither authoritative nor definitive. Only the courts can give a definitive interpretation of the law.

Local authorities must seek the advice of their own internal or external legal advisors.

You will be aware of the current problems that have meant tax credits may have been delayed which may mean cash flow problems for some people. Local authorities should bear this in mind when considering whether it is appropriate to commence recovery action for arrears of council tax.