OWNERS of second or investment homes in York face being hit in the pocket by tough new council cash collection powers.

City of York Council finance chiefs have approved proposals to cut the council tax discount on second homes from 50 per cent to ten per cent.

On properties classed as long-term empty, unoccupied for six or 12 months depending on certain circumstances, the discount can be removed entirely.

The measure will be brought in for the next financial year and could net the council an extra £300,000 a year.

Currently 670 York homes are classed as second homes, while a further 475 are classed as long-term empty.

The council's executive member for resources, Coun Quentin Macdonald, said: "The committee was unanimous on varying the discounts. It was a straightforward decision. If people can afford a second home then, by and large, they can afford the council tax on it."

An appeals procedure would be put in place to deal with hardship cases.

Ruth Potter, shadow executive member for housing, said the council's Labour group supported the new powers.

She said: "Paying the reduced rate of council tax on second or investment homes is a subsidy. People who own second homes should make a full contribution towards local services."

The decision was taken at a meeting of the executive member for resources and an advisory panel, when councillors also discussed bringing in council tax discounts for York's older residents.

Kent County Council recently decided to give pensioners a council tax discount.

Coun Macdonald said: "Such discounts are unlikely to be a perfect answer to the problem of ability to pay, but they may go some way towards it until local income tax can be introduced."

Officers will now investigate the implications of a pensioners' discount and whether the city council has the power to implement one, Coun Macdonald said.

Updated: 11:38 Thursday, October 23, 2003