Council Tax Timebomb

Written by Steve Sollitt and published in Daily Echo on Mon 28th Mar 2005

How much has the value of your property increased since 1991? 100%? 150%? - In Southampton the average property has increased by 191% since then, that's 30% above the national average. Good news you would think! Well maybe there is a nasty surprise waiting for you.

Council Tax revaluation is looming, delayed by Labour until after the General Election. As Council Tax bandings haven't be re-evaluated for 14 years there are going to be some shocks.

When Labour undertook this exercise in Wales things did not go to plan. In Cardiff, 64% of homes have gone up at least one band, with just 2% going down. Worse still, some of the worst hit areas - with as many as 90% of homes moved up - were some of the poorest.

The real issue is that Council tax is an unfair tax and it will get a lot worse for the residents of most of Southern England when re-evaluation happens. The Council Tax, brought in by the Conservatives after the Poll Tax disaster needs reform, not manipulating at the edges, the policy of the Tories now. Michael Howard was part of the government that brought the tax in, now he says it's unfair to some!

Both Labour and the Tories are committed to re-evaluation of this unfair tax - The Liberal Democrats feel it should be scrapped and replaced by an alternative

In Southampton the average weekly wage is 4% LESS than the national average. So whilst property values have soared, wages haven't.

The Liberal Democrats want to introduce a local income Tax to replace Council Tax, as it would be fairer. Compared to Council Tax under re-evaluation a lot fairer.

So when it comes to the General Election, think carefully about the timebomb both Labour and the Tories have lined up for you. A taxing time lies ahead.

Steve Sollitt

Liberal Democrat Parliamentary Spokesman for Southampton Test