Ruffley warns Council tax revaluation is a 'ticking tax timebomb'

Monday, 20 September, 2004

David Ruffley MP warned this week that the revaluation of properties for council tax, starting next year, was a 'ticking tax timebomb' that threatens to send council tax bills in Bury St Edmunds and Stowmarket soaring. By contrast, Conservatives have pledged that they will stop the revaluation being used to further increase the tax burden on local residents.

In Wales, where the council tax revaluation has already started, one in three households are being moved up a council tax band, while only a mere 8 per cent have moved down. Laws to allow the council tax revaluation were passed last year, and the revaluation process will start in England in 2005- with new bills being issued after the general election. The revaluation will be in addition to any Government plans to introduce new council tax bands and change the banding multipliers after the general election.

If the Welsh changes were duplicated in England, then MANY BAND D HOMES CURRENTLY PAYING £1,167 COULD SEE AN AUTOMATIC TAX HIKE OF £257 A YEAR BY BEING MOVED UP A BAND; SIMILARLY, MANY BAND H HOMES, COULD BE MOVED INTO A NEW BAND I, TAKING THEIR LOCAL TAX BILL TO A RECORD £2,723 A YEAR. IN ST EDMUNDSBURY AND MID SUFFOLK, MOVING A BAND D HOME UP A BAND WOULD MEAN A TAX HIKE OF OVER £250 AND, FOR A CURRENT BAND H HOME, THE TOTAL TAX BILL COULD INCREASE TO OVER £2,800 A YEAR.

David Ruffley said:

'It is clear that Labour are planning third term tax rises, with stealth changes to council tax one of their preferred ways of squeezing hard working families and pensioners. I fear that council tax revaluation will be used as a ticking tax timebomb, primed to explode after the general election.

'Not only have local residents faced soaring tax bills since 1997 thanks to the Government, but now Labour want to move more homes into higher bands and charge those bands more. Conservatives are opposing these plans and we pledge to stop the revaluation process being used to increase tax on houses in the Bury St Edmunds and Stowmarket areas.

'I am very concerned that people who may not be wealthy, but whose home has risen in value due to rising house prices, will be taxed to the hilt to pay for Labour's growing appetite for fat government and will struggle to pay their soaring local tax bills.'