Liverpool’s cabinet will this week debate proposals to scrap the discount on council tax currently given to owners of empty properties, a scheme which is costing the authority an estimated £2.1 million each year.

A report to be presented to the council on Friday (11 December) suggests the “council’s current policy in relation to empty properties may not provide sufficient incentives for private landlords to let or dispose of empty property.”

That current policy was brought in following the passing of the 2012 Local Government Finance Act, which gave local authorities the ability to vary certain council tax discounts and charges on vacant properties from April 2013.

Liverpool City Council currently operates a permanent 20% council tax discount on empty furnished property. Out of the 620 empty properties in this category, around 500 have been vacant for over two months and 300 have been empty for more than year, according to the report.

There is also a two-month 100% council tax discount on empty unfurnished properties. The report notes that no other core cities offer this level of discount; Birmingham, Nottingham and Sheffield offer landlords no discount at all.

Mayor Joe Anderson will recommend that the council considers the matter and that following consultation with private landlords and advice agencies, a complete report will be prepared for full council in January 2016.

If approved, the discount will be removed from 1 April 2016.

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