12 January 2007
Local homes in the Ludlow constituency face a 'home improvement tax' on the likes of sheds, conservatories, double glazing, extensions and bathrooms, under Labour's plans for annual council tax revaluations, warned Philip Dunne, MP for Ludlow.

Government documents have revealed that a 'Big Brother' council tax revaluation database is being rolled out across England. Council tax inspectors have stated that annual revaluations are now possible thanks to new American technology. Currently under the council tax system, material changes to a home - like home improvements - are not taxed until a property is sold or until there is a revaluation. Annual revaluations would mean that any home improvements would be taxed at every revaluation.

In April, a new 'house price tax' is being introduced in Northern Ireland as a pilot for England. Under this system, any 'material' changes to the property - including new sheds, double glazing, patios, bathrooms, conservatories and extensions - will result in a larger tax bill in the year after the change is completed. In effect, local residents face a 'rolling revaluation'.

In Scotland, the Lib-Lab review into town hall finances has recommended annual revaluations, as well as a house price tax. The Labour-run Welsh Assembly Government has also called for bi-annual council tax revaluations. This is despite the fact that the 2005 Welsh council tax revaluation saw four times as many homes move up rather than down; the Assembly Government admit that such a move to regular revaluations will be seen as "increases in tax revenue being the main driver".

Mr Dunne said:

"I am very concerned that Labour are preparing to introduce a new home improvement tax, on top of stamp duty. Millions of pounds of taxpayers' money is still being spent on developing a sinister Big Brother database of every home in Ludlow. Gordon Brown's council tax inspectors are paving the way for annual revaluations - to tap into and tax changes in house prices and the DIY boom.

Taxing home improvements, such as sheds, double glazing and conservatories, is yet another stealth tax on family homes, punishing those who have worked hard and saved. Tax inspectors have been given the invasive power and tools to barge inside and inspect your home, and log and record every feature - including the number of bedrooms and bathrooms.

Not only is this a sign of more stealth taxes to come, but it is an unwelcome assault on the civil liberties and privacy of local people. Conservatives are vigorously opposing these plans."