COUNCIL TAX REVALUATION 'WOULD HIT POOREST THE HARDEST'

First published by: The Guardian

COMMUNITIES SECRETARY, ERIC PICKLES, DEFENDS GOVERNMENT DECISION NOT TO REVALUE COUNCIL TAX BANDS

Eric Pickles said based on a revaluation in Wales, 7m households would be worse off from a similar exercise in England. The government today defended its decision not to revalue Council Tax bands during the current parliament, claiming the exercise would hit the poorest the hardest. The communities secretary, Eric Pickles, announced the move last night, saying families would be up to £320 better off than if a planned revaluation by Labour had taken place. 

Labour said the announcement was "cynical and misleading" as the party had pledged in its election manifesto that it would not have held a Council Tax revaluation in the next parliament. Today Pickles acknowledged that current Council Tax bands were based on dated information, but said there was no need to conduct a revaluation because the current system was fair. In an interview on BBC Radio 4's Today programme, Pickles said that, based on an unpopular revaluation in Wales, 7m households would be worse off from a similar exercise in England. "Let's go back to Wales. 

The people who were hit the hardest were those on the lowest bands, A to C. Something like two-thirds of the increases occurred in those bands in Wales. This would actually hit poorer people harder than it would hit richer people." He said a planned revaluation by the Labour government would have meant the average Band D tax bill would rise by £1,600 a year. "What we want to do is offer some degree of stability. Just coming out a recession I don't really think we should be imposing an extra £1,600 worth of taxation on them," he told Today. Plans for a revaluation of 22m homes in 2007 were postponed by the Labour government in 2005, after the Welsh revaluation prompted anger over Council Tax rises.

Pickles also denied the government was being centrist by denying councils the scope to revalue bands in their areas. "They can raise their Council Tax. We are going to remove capping and allow local people to decide the level of their Council Tax by way of a referendum. So we are taking power away from the centre and giving it to local people," he said. He insisted the current system was fair. "It is the relationship between the top and the bottom bands that's important and the relationship between the north of England and the south of England. They are roughly in the same position that they were 20 years ago. So there is actually no need for a revaluation."

Pickles also announced an independent review of Council Tax inspections, which he said would "rein in intrusive snooping" by restricting the data gathered and stored about people's homes. Inspectors from the Valuation Office Agency (VOA) assess the value of properties for Council Tax purposes, and there has been controversy over their collection of data on features of homes such as the number of bedrooms or bathrooms, whether it has a patio and whether it enjoys a nice view or is in a good neighbourhood. An independent data audit of the VOA would protect privacy and civil liberties as part of the government's agenda of dismantling the "database state", Pickles said.

"We have cancelled Labour's plans for a Council Tax revaluation which would have hiked up taxes on people's homes," he said. "The new government will protect the privacy of law-abiding citizens from intrusive spies-in-the-sky and halt state inspectors from barging into England's bedrooms and gardens. "We are standing up for the people who have pride in their home, and calling time on Labour's state snoopers and surveillance state. "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."

A Labour spokesman said the party "made an unequivocal commitment that there would be no Council Tax revaluation in this parliament". "This is a cynical and misleading manipulation of facts," he said. A spokeswoman for the VOA said it was "absolutely not the case" that its inspectors' work amounted to snooping on householders. She said the agency has never exercised its legal right to enter a home since it was introduced by legislation in the early 1990s.

Consumer expert Martin Lewis, of moneysavingexpert.com, said the failure to hold a revaluation would mean 400,000 homes remaining in the wrong Council Tax bands.

READ WHAT: ERIC PICKLES ‘SECRETARY OF STATE’ SAYS ABOUT OVER-CHARGED COUNCIL TAX.

ARE YOU PAYING TOO MUCH COUNCIL TAX - CHECK HERE?