News story

27th October 2004

Local MP Warns of Massive Council Tax Hikes in West After Revaluation

Northavon MP Steve Webb has this week used a House of Commons debate to warn of swingeing council tax increases in parts of the West when houses are re-valued for council tax purposes. The Lib Dem MP called a 90 minute Westminster debate on Tuesday (26th October) to highlight the way in which many West households could face massive rises in their council tax when the new valuations are applied in a couple of years' time.

At present, Council Tax bands are based on the value of properties at the start of 1990s. But under plans currently being finalised by the Government, the value of all houses will be reassessed based on their current value. Householders who have improved their properties or who live in property hotspots could find that they are moved up one or more Council Tax bands and could face large increases in bills. In Wales, where a revaluation has already taken place, nearly one in three households will be moved up at least one council tax band. A typical householder who is moved up from Band D to Band E could find that their bill rises by over 20% on top of any general increase in Council Tax in their area.

Speaking after the debate, Steve Webb MP said:

"I am very concerned that these new valuations will punish many people who have improved their homes or who live in areas where house prices have risen rapidly. Many people, including pensioners in particular, will find that their bill rises sharply even though their income is no higher. This is yet another unfairness in the council tax system, and is another reason why I believe it should be scrapped and replaced with a fairer local tax. With a local income tax you don't have these huge revaluations and that means you don't have large numbers of people facing unexpected hikes in their bills".
 

Click here to read the debate on council tax revaluation