The prime minister has opted to pospone a decision on radical reforms to council tax until after the next general election.

On Tuesday, John Prescott will publish a report containing a series of options to alter or replace council tax as part of a review of local government funding.

But The Times says that the deputy prime minister will also announce the establishment of another working party to look in more detail at the options put forward.

Most papers, however, suggest that council tax for expensive homes could soar under the proposed changes.