Council tax revaluation postponed
The revaluation of council tax in England has been postponed, the government confirmed today.
Instead it has extended its inquiry into local government funding so any future revaluation will take account of reforms to the way local government is funded.
Council tax revaluation, which involves revaluing properties and the council tax bands in which they are in, started in April this year and would have affected council tax bills from April 2007.
The last revaluation in England was carried out in 1991, since which house prices have risen by an average of 186 per cent, according to Halifax.
But the government said today that it was postponing the revaluation so Sir Michael Lyons’ review of funding could consider issues relating to the wider functions of local government.
Local government minister David Miliband said it was necessary to get “a clear and complete picture of what we want local government to do before we tackle how it will be funded”.
He added: “We have decided to postpone revaluation from 2007 so that revaluation can take full account of Sir Michael Lyons’ further work. We do not believe that revaluation will take place this parliament.”
Critics of the government believe it is shelving the review because it fears a backlash from middle England over further increases in council tax.
In the recent revaluation carried out in Wales, one in three homes moved up at least one council tax band, leading to higher bills.
The Conservative party, which pledged during the general election to shelve revaluation, had warned that should the same happen in England, the typical household would see their bill increased by £270 a year.
Today, shadow local government minister Caroline Spelman accused Labour’s plans of being in “complete disarray”.
“The announcement is only a postponement, not a cancellation, and we are still yet to find out what nasty surprises the Lyons review will bring,” she said.
“Labour’s third-term tax hikes are still to come, and all they have done today is reset the clock on this ticking tax timebomb.”
The Liberal Democrats have pledged to scrap council tax altogether and replace it with a local income tax.
Preparatory work for the 2007 revaluation will be abandoned, although the government insists that it would provide a foundation for the future.
The government will legislate to set a new date for the revaluation.
