Fears over tax valuation (From Barry And District News)

Fears over tax valuation

ASSEMBLY minister Alun Cairns AM has called for action amid fears that council tax revaluation will hit Barry and the Vale harder than the rest of Wales.

Mr Cairns, Tory Parliamentary Spokesman for the Vale of Glamorgan, said: "Many taxpayers across the Vale of Glamorgan have received notification of their new council tax band, and a large proportion of the population will see their bills increase next April. 43.9% of dwellings in the Vale will face an increase in Council Tax with only 3.2% of properties being reclassified in a lower band.

"Despite assurances from Government Ministers that there would be as many winners as losers in this re-banding exercise, the harsh reality is that nearly 50% of Vale households find themselves moving up at least one council tax band. The Assembly Government have once again effectively increased taxes by the back door."

He added: "We need assurances from the Assembly Government that this process, which is supposed to be tax neutral, is not used as a way of increasing the total tax levied as was the case when the Assembly Government introduced its new funding formula."

Finance, Local Government and Public Services Minister, Sue Essex said: "This is the first time that a revaluation has been undertaken since council tax was introduced in 1993.

The new revaluation places homes in bands according to their value on April 1, 2003, this means that council tax calculations will now be based on up to date property values.

"I want to reassure council taxpayers that revaluation in itself was not undertaken as a reason to increase council tax levels. However it is logical that homes that have increased in value greater than the national average are more likely to move up the banding system."

Mrs Essex said that the Welsh Assembly Government intends to assist those most affected the most by the revaluation.

She said: "The Welsh Assembly Government intends to smooth the changes in council tax liability for all eligible households that move up the banding system by two or more bands.

It is our intention that eligible households will not pay more than a one-band increase in year one of the scheme and not more than a two band increase in year two. We will shortly be discussing details of the proposed relief scheme with local authorities before embarking upon a consultation on the proposals."

The new valuation bands which take effect from 1st April 2005 are: Band A up to £44,000 Band B £44,001 up to £65,000 Band C £65,001 up to £91,000 Band D £91,001 up to £123,000 Band E £123,001 up to £162,000 Band F £162,001 up to £223,000 Band G £223,001 up to £324,000 Band H £324,001 up to £424,000 Band I £424,001 and above