Citywire for Financial Professionals
Stay connected:

Citywire printed articles sponsored by:


View the article online at http://citywire.co.uk/money/article/a433681

Council tax revaluation plans cancelled by coalition

The government today pledged there will be no council tax revaluation in England for at least five years and people’s privacy will be better protected from snooping council tax inspectors.

The government today reassured local taxpayers there will be no council tax revaluation in England for at least five years and promised people’s privacy will be better protected from snooping council tax inspectors.

All properties were placed in a ‘valuation band’ in the early nineties, based on how much it was worth, and this determines how much council tax you pay today. However, thousands of people are currently in the wrong council tax band, many of whom could be paying too much tax. According to government figures more than half a million homes have had their council tax band changed in the last 13 years.

The previous Labour government had planned to revaluate council tax bands in 2007, but in the end postponed doing so until after the election. However, the coalition has now pledged council tax revaluation plans will not go ahead during the lifetime of this parliament.

Eric Pickles, secretary of state for communities and local government, said: ‘We are today confirming that there will be no council tax revaluation which could have pushed up taxes on people’s homes’.

Labour insists that as promised in its manifesto it was not planning to go ahead with revaluation plans either if the party had been re-elected.  

Privacy issues

The government has also said it will carry out an Independent Data Protection Audit of the Valuation Office Agency’s (VOA) council tax database to make sure people’s privacy is protected when the Agency assesses properties and stores data.

The Valuation Office Agency determines what council tax band your property is put into.

Pickles said: ‘The new Government will protect the privacy of law-abiding citizens and halt state inspectors from unnecessary intrusion. We are standing up for people who have pride in their home, and calling time on the surveillance state’.

There are also plans to examine how councils are funded, provide greater financial freedoms and decrease dependency on Whitehall funding.

11 comments so far. Why not have your say?

Calm down and think it through

Sep 24, 2010 at 14:43

Council tax is ridiculous, it takes no account of the income or the number of people that live in a home. The only minor concession to logic is the single occupant rebate. We should not go to the expense of revaluing every property. We should scrap the tax altogether.

report this

snoekie

Sep 24, 2010 at 15:27

Calm down, and that, your "it takes no account of the income or the number of people that live in a home" comments brings us back to either local income tax or poll tax.

report this

Martin Drew

Sep 24, 2010 at 15:59

The Council tax revaluation in Wales was brutal on some people living near Cardiff who, as a result of the Cardiff Bay barrier, found themselves living in homes which had increased in value more than 10 fold in a few years. Their income, had not increased anywhere near as much.

It must surely be possible to base the tax on a calculation based on what was paid for the house, which could be income inflation increased each year. There are plenty of websites that publish the Land Registry information on house sales so one assumes local councils could also get the information for their area. The computers could do the rest of the calculation. It might also do something to stop house price inflation going crazy again (once the bottom is finally reached - if it ever is!)

report this

Calm down and think it through

Sep 24, 2010 at 16:21

Snoekie – the fact that Council Tax is ridiculous leads us to the conclusion that it should be scrapped. It does not automatically take us back to poll tax, which did not take income into account. Neither should it be assumed that local income tax is the best alternative. The replacement should be decided by a referendum. One of the options should be the use of the existing income tax collection system. As it already exists there would be no additional cost and the cost of collecting Council Tax would be saved.

report this

David Chapman

Sep 24, 2010 at 18:50

The Labour Govt managed to push through the revaluation of business premises this year !!! My business rates went up From £148 per month to £198 per month - 1 P/T staff lost their job as a direct result - not good if repeated across the small business sector !!

report this

snoekie

Sep 24, 2010 at 22:17

David not their fault, it is you the evil capitalist!!

report this

David Chapman

Sep 24, 2010 at 23:12

If it wasn't for capitalists like me you wouldn't get any benefits you socialist loser !!!

report this

Ivor Nestegg

Sep 25, 2010 at 10:46

I, for one, thought that the Community Charge (note that it was never called the Poll Tax except by those who wished to denigrate it) was an excellent system.

Everyone had to pay their share and people could then decide whether or not they wished to pay for high spending councils. The trouble was that such accountability was anathema to socialist councillors, who were only to happy to solicit votes for such policies from people who would never have to pay the resulting local taxes.

As for the "ability to pay" argument, this overlooks the fact that rebates were available that could reduce the cost to as little as £1.50 per week - less than the cost of a packet of cigarettes. Funny how "the poor" always seem to be able to afford that but can't pay their share of the cost of running their local council!

report this

Calm down and think it through

Sep 25, 2010 at 17:43

Ivor Nestegg – that’s fine, if we have a referendum you can vote for that solution, after all it’s better than the present system. The point is this, Council Tax is so wrong, so ridiculous and so unfair that it must be scrapped.

report this

Martin Drew

Sep 26, 2010 at 10:46

Maybe the problem with the Community Charge was the way it was administered. In Central London, where I lived at the time, my rates were £1,250 per annum, the first year of the poll tax I paid somethinbg like £32.50. That was nice for me, but why should someone like me be given such a massive subsidy (it was something to do with living in an inner city, which might have made sense in Liverpool, but in Westminster?).

The present system doesn't work, but neither did Rates or the Community Charge. The LibDems local income tax made sense, but was ridiculed by the press and so they dropped it, but so far no-one has come up with anything fairer.

report this

Calm down and think it through

Sep 26, 2010 at 14:38

Martin Drew – Your contribution raises two important points. Several problems with the Community Charge would have been eliminated if it had been based on income. The Liberal Democrats would have received a much better response if they had proposed a less complicated and expensive system. If the tax is based on income and collected by HMRC then it will be far less complicated and less expensive to collect.

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

Sorry, this link is not
quite ready yet