Council tax revaluations postponed for next five years

24/09/10
News

Council tax bands will not be revised during this Parliament, which could save householders over £300 a year, it was announced today.

The current eight tiered system places homes in categories ranging from Band A to Band H according to their value. Homes that have risen in value since the last council tax band adjustment in 1993 will not be forced to pay more under the government ruling.

In 1995, Wales underwent a revaluation, which put a third of homes in higher bands – a Band D to Band E rise in England could have cost householders an extra £320 each year.

Local Government Secretary Eric Pickles said that a revaluation won’t take place until 2015. He added: “We have cancelled Labour’s plans for a council tax revaluation which would have hiked up taxes on people’s homes”.

He continued: “This will probably save the average household £1,600 through the lifetime of this parliament. Hefty council tax bills are a constant financial worry for many people. Today we are setting their minds at ease, and protecting the interests of the less well-off in particular who were the hardest-hit from Labour’s council tax revaluation in Wales”.

However, a Labour spokesman said that the party had made a commitment not to revalue council tax bands during this parliament anyway. He described Mr Pickles statement as “a cynical and misleading manipulation of facts based on what was ultimately a routine updating of the Valuation Office Agency’s records”.

Emma Boon, spokeswoman for the Taxpayer’s Alliance said: “Council tax has doubled in the last 10 years whilst many services have been scaled back, executive pay has spiralled out of control and charges have increased; it’s time council tax was cut”.