Council tax brought in line with property prices?

Council tax bands are set to be reviewed if Labour returns to power after the next election to reflect the steep rise in property prices.

Council tax bands are set to be reviewed if Labour returns to power after the next election to reflect the steep rise in property prices.

And commentators are predicting the move could lead to steep rises in the charge, it was reported today.

It is believed all properties would be revalued by a new Labour government in a move which would hit homes which have seen sharp increases in their value.

A draft policy document leaked to a Sunday newspaper says: "Labour believes that the council tax system should be made fairer and we will review council tax bands."

The council tax, introduced in 1993 to replace the poll tax, is based on the value of individual properties in the early nineties.

If a review of bands is carried out it could push homes which have seen their values increase in the property boom into higher bands so residents will pay more council tax.

According to the Independent on Sunday the policy proposals on the environment also promise a crackdown on building on open spaces in cities.

The presumption against development in the green belt will be extended to other "green public places in urban areas."

According to the reports all vacant property will be placed on the database of land which could be developed.

Wind farms will be placed on offshore sites to stop noise nuisance to residents.

And companies will be encouraged to produce an environmental report and be given tax incentives to encourage the use of renewable energy sources such as solar power.

The policy plans are to be discussed as proposals which could be included in Labour's next manifesto. A Labour Party spokesman said: "The last time we looked at tax and banding it was broadly thought that change was not necessary.

"Were we to decide to review valuations in the next Parliament we would announce that in due course."