Prescott accused of planning stealth tax
Deputy prime minister John Prescott has been accused of planning a £200 million stealth tax on English households by Conservative opposition.
With an adjustment of council tax bands due in 2007, Mr Prescott is carrying out a revaluation of homes in England that is expected to follow a similar revaluation programme as to that carried out in Wales this year.
The revaluation saw 67,000 households moved up by two or even three bands but the National Assembly stepped in to provide those affected with transitional relief worth £11 million a year.
However, no such measure would be implemented in England.
“The government’s intention is that the transitional relief scheme will be self-financing,” said local government minister Phil Woolas.
Conservative spokesman Caroline Spelman added that this would mean local authorities would be forced to increase council tax rates for all householders in order to fund the transitional relief needed.
“The rigged council tax revaluation in Wales and the business rates revaluation in England have destroyed Labour’s claims that revaluation is revenue neutral,” Ms Spelman said.
“There is now growing evidence that Labour will use this complex process to hike bills by stealth.
“Their refusal to fund support for those whose bills shoot up by two or three council tax bands means higher bills for everyone and a sneaky £200 million tax hike – the first instalment of further tax hikes to come.”
