Report calls for two new council tax bands by Finance News Bulletin

Published: 04/01/08

News Companies & markets Investing Power collection Campaigns Mortgages & homesMortgage featuresInsurance Consumer advice Broadband & phones departure Saving & banking Credit & loans Small business duty & wills Message boards cash blog Tools & calculators Ask an expert Guides Compare & pay money forA landmark report is expected to call for the formation of new council tax bands for the most expensive and cheapest homes

A QUICK cash MAKEOVER If you only have one minute to learn how to sort your finances, forget the relax and read this>> Our 8-step planReports suggest that Sir Michael Lyons's longed-for study into local government funding, due to be in print tomorrow, will also say that the state's homes should be revalued before any changes are madeThe introduction of two extra committee tax bands at either end of the cost spectrum would widen the scope of council duty chargingBut with the current council duty bands, which date from 1991, preliminary at under £40,000 (A) and ending at £320,000 (H) and above, revaluation would be needed to spread homes evenly across the bands

If bands were greater than before in line with home price inflation from their original 1991 level, using figures from the Nationwide Building Society House Price directory, the lowly band would be under £124,000 and the highest £993,500 and aboveBut critics of the banding system argue that a property's value does not reflect owners' aptitude to pay, with unparalleled buyers in London and the South East currently paying £200,000 or more for a one or two-bedroom level - the equivalent price of a three-bedroom relations home in the Midlands and NorthThe average family council tax bill has risen from £525 to more than £1,000 since 1997 but due to the way funds are collected nearby but then shared out by middle government, on average local authorities must raise bills by £4 to get £1 backjoint with the tapering of Government funding this has led to many council taxpayers seeing bills rise while services are slash, and councils increasingly relying on measures such as parking enforcement to lift revenueThe report by Sir Michael Lyons, professor of public rule at Birmingham University, was originally scheduled for let go in July 2004, before being postponed until the end of 2005 and subsequently postponed again

In addition to suggestive of new bands, it is also expected to speak people entitled to council tax benefit should increase it automatically instead of having to claimThis is Money is packed with news, recommendation and tools that can help you get ahead and save moneyCommunities desk Ruth Kelly has flatly lined out any changes to council tax bands before the next universal Election, leading to suggestions the Lyons report will be shunted aside by the GovernmentShe said: 'On the particular point about higher speed bands, if that were to be proposed by Sir Michael Lyons, that could only ever be something that could possibly be considered at a time when you re-valued the whole housing market

And, as we've said, we're not going to do that in this Parliament, there's no view of doing that in this Parliament It's an absolute hopeless case for this Parliament'You know what they speak A good politicion always keeps his promises

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