Norman Lamb says: 'Big increases in Norfolk Council Tax predicted!'

5.39.20pm GMT Thu 3rd Feb 2005

Liberal Democrat research published in The Times newspaper today reveals that house prices in specific areas of Norfolk have gone up by as much as 215% since 1991. This has serious implications in terms of Council Tax increases with people in Norfolk are likely to be losers rather than winners once the government has finished revaluing house prices across the country. Other parts of the country, where house prices have gone up less than the national average, are likely to end up paying much less as their houses will not be valued so highly.

In 1991, 94% of houses in North Norfolk were valued at under £100,000, with almost 70% valued at less than £50,000. However, Halifax calculations for East Anglia generally suggest an increase of 157% which means that less than half of North Norfolk's houses would be valued at less than £100,000 today.

"This dramatic increase in house prices will have a significant knock-on effect for council tax bills landing on Norfolk doorsteps," said Norman Lamb this morning.

"For example," added Mr Lamb, "a house worth £40,000 in 1991 is currently in council tax Band B. But, according to Halifax, that house could now be worth more than £100,000. This is equivalent to houses currently Band E which have a corresponding council tax bill of nearly £1,500 - over £500 more to pay each year than for a Band B house."

Norman Lamb is concerned that people in Norfolk will be increasingly penalised by council tax because house prices have increased so steeply here since 1991. "This will hit pensioners, and many others with fixed incomes, very hard," he pointed out.

Mr Lamb highlighted Liberal Democrat plans to scrap Council Tax in favour of a fairer system using a Local Income Tax, which would be based on individual ability to pay. "A Council Tax based on house price rather than income is unfair and out-dated. It's time to revamp the system so that people in Norfolk don't lose out to other areas of the country," he said.