OWNERS of second homes in Hambleton look set to face higher council tax bills.

Members of the district council's cabinet were yesterday being urged to use a change in the law and cut discounts - currently standing at 50pc. If members agreed, these discounts will be reduced to 10pc for most second homes.

Similarly, discounts for long-term empty properties could be cut.

The council's finance director, Phillip Morton, said the legislation had been brought in to give local flexibility to deal with second and holiday homes.

In some areas, this was a major issue, driving up house prices and pushing property out of the reach of young local families.

Mr Morton said: "While the issue in Hambleton is not as significant as in some districts, it would be wise to use all potential policy tools to improve housing supply."

The cabinet was also looking at the question of potential use of any additional income from this source, hearing that bringing in a 10pc discount instead of the existing 50pc would generate an extra £9,500 next year. Precepting authorities would also benefit.

Mr Morton warned that not changing policy could mean missing a chance to cut the demand for affordable homes.

The new laws do not apply to people who have a second home because of tied employee accommodation for which they are also liable and service personnel who live in Ministry of Defence homes. These taxpayers will continue to get a 50pc discount.

The cabinet was also being urged to remove a discount for long-term empty properties. At present property mostly unfurnished and empty for more than six months attracts a 50pc discount.

Mr Morton said: "Long-term empty properties have been identified as a problem for the council in helping to meet housing needs."

Figures show that about 200 properties fall into this category in Hambleton. Research has shown that reducing discounts could be a spur to let or sell unoccupied premises.

The shake-up could also include a local discount scheme. This would enable the authority to reduce the amount of council tax for any dwelling in the area. It is a tool which can be used to deal with local situations - such as flooding.

But the cost could be high. If, for example, a decision was made to discount 100 flooded homes, the bill could be as high as £26,375.

The report also proposed a change in policy on rate relief for amateur sports clubs to include only those registered with the Inland Revenue.

At present registered clubs get mandatory rate relief at 80pc which can be "topped up" by councils.

The council grants relief to 53 such clubs for premises they occupy. Of these, ten already have charity status and so get 80pc relief.

The total rates bill is about £90,000, of which the council offers relief worth £62,000 on typical discounts of 85pc or 90pc and at a cost to local taxpayers of about £15,500