Council Tax (New Valuation Lists for England) Bill

This has been an interesting debate. Having heard Madam Deputy Speaker’s clear and helpful guidance earlier, I intend to keep my remarks short and not stray too much into Welsh territory. I wish to respond directly to some of the comments of Labour Members, but, first, I should point out that the Welsh experience is relevant. The decision to postpone council tax revaluation in England was described by a Minister as a huge, vaulting, 180° U-turn, and that full-on U-turn is embodied in the Bill. I accept that one of the motivations for that U-turn might be to have a much wider ranging inquiry led by Sir Michael Lyons. I believe also that the Government are conscious of the political difficulties that could be caused and, with one eye on the experience in Wales, they will know of the resentment and anger that was caused by a botched council tax revaluation. The Government clearly want to avoid such political difficulties. The right hon. Member for Greenwich and Woolwich (Mr. Raynsford), unfortunately, is not in his place but I enjoyed his speech. I learned a lot, although I did not agree with everything he said. He referred to the Welsh experience of revaluation and explained why he will not be voting alongside his colleagues this evening. He made a strong defence of the principle of revaluation and gave assurances that the English and Welsh contexts were different. The right hon. Gentleman tried to make the point that, in Wales, the purpose of revaluation was almost to raise money, but that flies very much in the face of explicit assurances given at the time by Labour Ministers in the Welsh Assembly—the right hon. Gentleman’s colleagues—who promised that it would be revenue-neutral and was not aimed at increasing the overall yield. Likewise, the right hon. Gentleman referred to the number of winners and losers in the revaluation process and his figures were correct. The proportion of losers in Wales was 33 per cent. of households, with 8 per cent. being winners. Again, contrary to what he seemed to be suggesting, that is at odds with the assurances given by Labour Assembly Ministers at the time, who promised that there would be as many winners as losers. They talked about roughly 50 per cent. of households staying within the same band, with 25 per cent. of bills going up and 25 per cent. going down. I caution hon. Members who hear assurances that revaluation can be revenue neutral; the experience in Wales suggests that perhaps it will not be.