WOKING FACES ANOTHER COUNCIL TAX SHOCK

In addition to proposed County Council tax increases, towns in the South East are in line for massive council tax rises because of the threat of revaluation new Liberal Democrat research has shown.

Council tax is currently based on property values in April 1991 but the government is updating its valuation figures to take account of changes in property prices since then.

Analysis of the Halifax house price index by the Liberal Democrats shows that 81% of towns in the region have seen prices rise faster than the national average, meaning homes are likely to be moved into higher paying tax bands.

Commenting, Dr Anne Lee, Woking Liberal Democrats parliamentary spokesperson

said:

"People in Woking are already struggling because house prices have risen out of reach for ordinary people. Now the government is about to make it worse.

"The government claims Council Tax revaluation will make the system fairer. But this research shows it will be arbitrary, random and unfair, with low earners forced to pay even more.

"The pensioners and those on fixed incomes are about to be penalised for the market forces that have pushed up house prices in the region.

"In areas where prices have risen the most, homes could be moved up two, three or even more bands, which could mean tax rises of 50% or more. Revaluation in Wales has penalised rural areas - with Powys seeing more than 1,000 homes moved up three bands.

"Revaluation is a typical Labour stealth tax. Millions of families will see their Council Tax bills rocket once the election is over, but ministers have refused to come clean about it.

"The Liberal Democrats are the only people who have tackled this problem fairly with their proposal to abolish council tax and replace it with a local income tax."