Vincent Cable

Liberal Democrats | Twickenham

Council Tax Revaluation Bombshell

A review of house price changes shows that there are potentially very large level increases in council tax when revaluation takes place next year.  Current valuations depend on house prices in 1991 and when there have been big increases in prices, the residents could face a two or three band up rating – which could increase council tax by £300 over and above any increase made by the council.

Teddington has the biggest increase of 60 districts studied (234%) and there are substantial increases too for Kingston (219%), Isleworth (192%), Richmond (180%) which are above the national average (160%).  Vincent Cable MP said: “These estimates are potentially worrying for residents in areas like Teddington where house price increases have far exceeded the national average.  They will see a two or three band increase and a council tax increase of around £300.  There is better news, however, for Twickenham and Hampton which are at or below the national average.

“The underlying problem is that council tax is unrelated to ability to pay.  Revaluation may cause anger and frustration with the system to reach new levels.  A lot of people of modest means, particularly pensioners, will find themselves with 20% council tax increases in 2007 due to revaluation alone.”