Council Tax (New Valuation Lists for England) Bill

I am surprised. Council tax is an important issue because a lot of people feel that the basis of its funding and the distribution between the various regions of the UK is not fair. The gearing effect, about which we have heard much today, means that it is difficult for local authorities to keep the rate of increase in council tax down to the rate of inflation. As we have heard, since 1997 council tax has increased by well over 76 per cent., which is why the issue is particularly salient politically. No doubt that is why we have ended up with a Bill to put off the revaluation. The Opposition are concerned because the Government have some form in terms of the way in which they distribute grants. Over the past eight years, we have been concerned about how money is redistributed to the various regions, which is one of the reasons why we want to show our displeasure in a vote tonight. We are concerned about the impact on many areas in terms of grants. The other concern is that the Government have taken powers to change the bands, and to introduce more bands, to make council tax more progressive, which can be done by altering the various elements in a revaluation. If we have a revaluation and new bands are introduced at that point, we will have a very different tax from that introduced in 1993. There are concerns about the way in which the process will be dealt with and we need reassurances about a transitional relief scheme. When there are winners and losers, it is important to offset the increases for a period so that people become used to the new rate. The Sunday newspapers referred to the Valuation Office Agency’s computers, particularly the various codes being put in to value housing. My hon. Friend the Member for Brentwood and Ongar (Mr. Pickles) went into detail about the issues of concern raised by The Sunday Telegraph and there is concern about the amount of information going into computer software and how it will be used to vary particular bands. If we get to a situation where a view across a golf course or over the sea, or the condition of people’s patios and gardens, starts to play a role in council tax, people will be suspicious that revaluation will not be a neutral exercise but will instead raise a great deal of money. Those concerns need to be addressed. There is concern over council tax and over the distribution of grant.