Council Tax (New Valuation Lists for England) Bill

We have heard many opinions today, but there is one incontrovertible fact: people like living in my constituency. They live there until and after they retire; they live in the same houses from generation to generation. In the meantime, the value of their houses naturally increases, often at a rate that far exceeds any income that might enable them to buy their houses. We often talk about value, and it is the subject of today’s debate, but to many such people it is an abstract concept, becoming relevant only when they sell. We must be cautious about references to value and revaluation, which should be linked to ability to pay. Houses in my constituency are worth hundreds of thousands of pounds, but those values are not always linked to householders’ ability to meet an increase in council tax. Many an ordinary family in my constituency with a high-value property is scrimping and saving to pay the mortgage, and may have a lower standard of living than those with less valuable houses. Similarly, hard-working constituents in council or social housing may live in high-value properties that are already affected by a high council tax valuation, and would be more affected by a revaluation. Those who will not profit from a sale will not benefit from an appreciating asset. People on fixed incomes, such as those who lobbied me on behalf of the National Pensioners Convention, are particularly affected by council tax increases. As their life expectancy increases, there is the prospect of a fall in their standard of living over 30 years or more, primarily as a result of local taxation. That cannot be right, and the Bill cannot help them or alleviate their concern. The main problem is that, under the Bill, revaluation would be at the behest, or the whim, of the Secretary of State. As the hon. Member for Cambridge (David Howarth) pointed out, there is a danger that it would be politically motivated rather than being related to equity. The primary concerns would be how taxes could be raised, and how votes could be gained. The Bill suggests a move into the political arena rather than an interest in what is best for my constituents—a proper, equitable tax.