Southampton Residents facing Labour Council Tax Bombshell

8.06.26am GMT Thu 3rd Feb 2005

Axe the Unfair Council Tax

Residents in Southampton 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.

Families in Southampton will be one of the worst hit as a result of revaluation because house prices have risen so much faster in the city than in the rest of the country.

Analysis of the Halifax house price index by the Liberal Democrats shows that 82% 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 on the survey Steve Sollitt, Parliamentary Spokesman for Southampton Test said " Here in Southampton, where property prices have risen an average of 191%, residents will be hit hard by this. The increase is well above the national average of 161%. Whilst property values increase , the average weekly wage in the city is £342.40 compared to a national average of £355.20."

"If homes are moved up a tax bracket, this could see a 22% increase in the Council Tax for the property"

"Labour is set to turn the warm glow of house price rises into a post election tax timebomb.

"The government claims Council Tax revaluation will make the system fairer. But this research shows it will be arbitrary, random and unfair.

"The people of Southampton are about to be penalised for the market forces that have pushed up house prices in the area."

"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. The danger for the capital is that it could follow Cardiff, where more than 60% of homes were moved into higher bands.

"One home was moved up six bands - more than doubling that family's tax

"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."