Council Tax Revaluation setback in Prospect

12.42.47pm BST (GMT +0100) Mon 19th Jul 2004

On Tuesday the government announces its Balance of Funding Review with proposals for reforming council tax. The expectation is that the government will create extra council tax bands when properties are revalued for council tax assessment. The highest brands will carry a significantly higher rate of tax, probably three times the current top band rate. Since the borough is amongst the most expensive in the country in terms of property prices, some residents will face massive increases.

MP Vincent Cable said that "attempts to make an unfair tax fairer in this way will create some severe anomalies. There are some elderly people on low incomes in expensive property who will find that their council tax bill has risen by two or three times. At present council tax operates in a regressive way, unrelated to people's ability to pay, and I doubt that the new banding will change this. That is why the tax should be scrapped and replaced by an income based tax".