The Government has made and laid the Local Government (Structural Changes) (Finance) (Amendment) Regulations 2026 (SI 2026/406) today, 14 April 2026, with commencement on 8 May 2026. The instrument adjusts how the one‑year lead‑in for council tax premiums on dwellings occupied periodically applies when new billing authorities are created through structural change orders.
Regulation 9 of the 2008 Structural Changes (Finance) Regulations is amended to deal with mixed histories across predecessor areas. Where at least one, but not all, predecessor billing authorities made a determination under section 11C(1) of the Local Government Finance Act 1992 before reorganisation, any first post‑reorganisation determination by the successor council is treated as that council’s “first determination” for section 11C purposes, but only for the parts of the new area where no prior determination existed. Existing determinations in other parts continue under the continuity provisions in the 2008 Regulations.
Section 11C-inserted by the Levelling‑up and Regeneration Act 2023-allows English billing authorities to set a higher council tax for “dwellings occupied periodically” (commonly understood as second homes) and requires a minimum one‑year notice for the first determination before it can take effect in a given financial year. Today’s amendment ensures that requirement bites on any newly covered parts of a reorganised area rather than being reset or bypassed by structural change. (legislation.gov.uk)
In practice, this closes a timing gap. Suppose a successor unitary is created on 1 April 2027 from four predecessors, two of which had already resolved to charge a section 11C premium and two had not. If the successor makes its first section 11C determination for the previously uncovered parts on 30 June 2026, the premium cannot start there on 1 April 2027 because the one‑year requirement would not be met; the earliest lawful start would be 1 April 2028. The already‑covered parts can continue without interruption because their determinations pre‑date reorganisation.
The amendment defines the key terms for clarity. A “predecessor billing authority” is any billing authority for part of the reorganised area before the reorganisation date. A “relevant determination” is a section 11C(1) decision made before reorganisation. A “subsequent determination” is the first section 11C decision made by the successor after reorganisation in relation to a “subsequent determination area”-that is, any part of the new council’s geography that previously had no section 11C decision. Only those subsequent‑determination areas are caught by the one‑year lead‑in triggered by treating the post‑merger decision as a first determination.
The scope line in the instrument extends to England and Wales, but the operative provision it cross‑refers to-section 11C-is an England‑only power. For finance leads, the key point is that the statutory notice clock runs on an area‑by‑area basis inside the new authority’s map, reflecting whether residents previously lived under a section 11C regime. (legislation.gov.uk)
For councils preparing 2027/28 or 2028/29 budgets, the immediate actions are administrative rather than political. Finance teams should map predecessor coverage, minute a clear first determination date for any uncovered areas, and model council tax base effects separately for those parts, recognising that revenues from new section 11C charges will only materialise once the one‑year notice is satisfied. Communications teams should brief affected residents that liabilities will not change mid‑stream because of reorganisation alone; any extension of premiums follows the statutory timetable.
Residents who own second homes in areas that had no previous determination should expect a formal decision by the successor council and at least a year’s notice before any higher amount becomes payable. Residents in areas where a premium already applied should see continuity from day one of the new authority, as existing determinations carry over under the 2008 continuity rule. (legislation.gov.uk)
Legally, the amendment sits within the existing framework of the 2007 Act’s structural change powers and the 2008 finance regulations. It does not alter the maximum premium levels available under section 11C; it only clarifies when a successor’s first extension into previously uncovered geography can start to bite. No impact assessment accompanies the instrument, consistent with the Government’s view that it adjusts the operation of an existing local tax regime rather than creating new obligations.
Timing is tight. Made at 11:55 a.m. and laid at 4:00 p.m. on 14 April 2026, SI 2026/406 starts on 8 May 2026. Successor councils planning to widen second‑home premiums for 2027/28 but lacking a pre‑1 April 2026 determination for some areas will need to re‑profile income and implementation to 2028/29 at the earliest.