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Council Tax

Volume 460: debated on Tuesday 8 May 2007

Given the Government’s decision to abandon the council tax revaluation for the foreseeable future, does the Secretary of State have anything positive at all to say to the 2 million-plus households that, according to the Joseph Rowntree Foundation, are struggling to pay council tax? Can she explain, too, why the Government are so committed to retaining the unfair and unjust council tax system, which was introduced, after all, by the Conservatives, and which we all know penalises people on fixed incomes, particularly pensioners?

I do not think that any tax is ever going to win a popularity contest, and the same is true of council tax, which is why we asked Sir Michael Lyons to look at it in what I think is a thorough and valued report. He concluded, first, that council tax is not broken and should be retained. Secondly, on local income tax, which was suggested by the hon. Gentleman’s party, he said that there are serious concerns about the fairness of the proposal. I urge the hon. Gentleman to look at what Sir Michael Lyons said. Let us work together in making sure that we have a council tax and council tax benefit system that really do mean that we have a secure and stable level of funding for the future.

The Minister has just alluded to the excellent and thorough report published by Sir Michael Lyons. Will she join me in urging all Members of Parliament to read it very thoroughly before they make pronouncements about the supposed effects of council tax revaluation in, to quote some people, “shoving up” everyone’s bills? If people understood the way in which council tax worked, perhaps they would refrain from such scaremongering, which is simply scaring enormous numbers of people for no reason.

My hon. Friend makes incredibly important points. Sir Michael Lyons himself said:

“In making the judgment about whether and when to revalue, government must weigh the risks to council tax from a turbulent or painful revaluation, against the risks of allowing the tax base to fall further into disrepair.”

Those are the sorts of considerations that any sensible Government must take into account. Michael Lyons himself said that revaluation was not an urgent priority. The key to council tax fairness and to putting that tax on a sustainable footing was, indeed, council tax benefit, which is why we need to work on his proposals to increase the level of council tax benefit, to make sure that it is both affordable and fair to people in this country.

Last week, a written answer to one of my questions confirmed that more than £4 million of taxpayers’ money is being spent on buying details of people’s homes from estate agents. On 24 April, the Secretary of State was quick to criticise the tabling of questions to elicit information of this kind. Can she reconcile that written answer with her assertion that the revaluation is not already under way?

I do not think I could have made my position any clearer to the House. We have no plans at all to revalue council tax in this Parliament. In fact, I think I am going to re-label the word scaremongering as “spelmongering”, because the hon. Lady is causing fear in houses up and down the country with ill-founded allegations about the Government’s plans. Instead of criticising this Government, she should tell us what she plans to do with council tax.

Will my right hon. Friend confirm that the Valuation Office Agency has to conduct valuations as part of the regular process and that it would be completely preposterous to abandon attempts to find new, more cost-effective ways of carrying out valuations? Will she therefore make it clear that any responsible party, including a responsible Opposition, should be welcoming these changes instead of trying to ridicule them?

As always, my right hon. Friend makes an incredibly important point. As he knows, there have been no changes in the powers of the Valuation Office Agency since 1993, when they were introduced by the Conservatives. Of course, the agency has to keep its records up to date, as any responsible Government agency should; and of course, instead of frightening pensioners, the Conservative party should be supporting these measures.