Council Tax System in Permanent Crisis

11.26.51pm GMT Thu 2nd Dec 2004

Responding to the Government's statement on councils' grant and council tax, Edward Davey MP, the Liberal Democrats' Shadow to the Office of the Deputy Prime Minister, said: "The council tax system is now in permanent crisis - with every Pre-Budget Report now used to force rises down.

"Despite cuts across Whitehall to plug the gaping hole in councils' finances, there's still a danger the unfair council tax will rise by up to four times inflation.

"The looming threat of council tax revaluation was totally ignored today, as Labour tries to hide unpleasant truths from voters.

"With council tax revaluation in Wales seeing 33% of homes rising one or more bands, it's clear why Ministers refuse to speak about revaluation.

"House prices have rocketed since the last revaluation in 1991. So, everyone knows that the next revaluation will bring large tax hikes for millions.

"This is a "pay now, pay more later" settlement. Ministers have put off difficult decisions, and are hoping for calm before a post-election storm. Yet council tax is so unfair, the storm is closing fast."