Council tax is set to soar for families living in properties nearing £200,000 as part of a review to be announced by government this week.

The Conservatives have claimed that the government’s balance of funding review into local government finance is likely to recommend the creation of new, higher council tax bands.

Whilst bills for those in low value properties would fall, those in top-end homes could see bills treble.

Conservatives claim the review will see local tax bills "soar for many hard-working families and pensioners".

It is understood that the review’s final report is likely to recommend that "there is a clear case for reviewing council tax bands and the ratios between them at the time of revaluation".

The Sunday Telegraph newspaper has said it has seen a copy of the review - which will be put to MPs on Tuesday.

New bands

Local government minister Nick Raynsford has previously suggested moving to a 10 band council tax system.

This has also been proposed by the New Policy Institute which has been a major contributory to the Balance of Funding review.

The Tories say a shift to a 10 band council tax system, combined with altering the ratios and a property revaluation, would mean "soaring council tax bills" in areas where property prices have risen since the last valuation in 1991.

The party claims someone living in a property priced between £230,000 and £310,000 would face an annual bill of £2,075. 

Those living in the top band - over £600,000 - would have to find £6,224 to settle council tax bills, the opposition claims.

Worse to come?

"Across the country, council tax has soared by an average of 70 per cent since Labour came to power, across all types of home. But worse could be to come," said Tory local government spokesman Caroline Spelman.

"The government are clearly planning to use the balance of funding review and next year’s revaluation to increase council tax further by stealth.

"This will punish pensioners and hard-working families who have lived in their homes for a long time, the value of whose homes have risen, but who are on modest incomes and cannot afford even larger tax bills.

"Labour’s language of 'fairness' actually means even higher local taxes."