Tories' council tax vow

Householders would be spared huge increases in council tax under a surprise Tory pledge today.

The Conservatives say they will stop the revaluation of homes, under which thousands of properties will move into higher bands - saving the average London householder about £300 a year.

The pledge was being unveiled by Tory leader Michael Howard today. It does not feature in the party's manifesto and caught other parties by surprise. Party strategists hope it will outshine Labour's promise to offer pensioners a £200 discounton the tax next year, and prove at least as attractive to voters as the Liberal Democrat promise to replace council tax with a local income tax.

Under the Tory proposal, the Government's revaluation of homes would be postponed for the lifetime of the next Parliament.

Revaluation has already begun, although new charges will not be applied until 2007.

The Government says the revaluation is justified because property values have changed so much since the bands were set in 1991. Councils insist they need the extra cash to run local services.

Under the revaluation scheme, typical families in an average Band D home are expected to pay nearly ?300 more.

The Tories estimate that an average home in Dagenham worth ?143,499 would move from band D to band E, costing about £267 more in council tax. In Ruislip, according to the Conservatives, the average home worth £249,691 would move up to band G, costing families an extra £279.

Estate agents believe some London properties could jump two or even three bands, adding more than £600 to annual levies.

Michael Howard said: "Under Mr Blair, millions of families have been hit by soaring council tax. His plans for revaluation would mean even higher bills. I believe in rewarding families who work hard and do the right thing. So I am going to stop Mr Blair's next stealth tax by cancelling revaluation."

The revaluation scheme is designed to hit those whose properties have risen in value by more than the average rate - 160 per cent since 1991. The changes will hit hardest in London and the South-East, where more than three quarters of properties have exceeded that rise. By contrast, in the Labour heartlands in the North-East, there are no towns where prices have risen faster than average.

The Tory pledge to abandon the process for the life of the next Parliament was kept under wraps until last night, sparking speculation over when it was drawn up.

The announcement comes after the Conservatives suffered one of their most difficult days of the election campaign, with Mr Howard's stance on immigration reportedly under attack by his inner circle.

The timing of the pledge triggered derision from Labour and the Liberal Democrats, who accused the Tories of "rank opportunism".

However, the Conservatives may have planned the policy long in advance as a trump card for their campaign. It shifts the focus of the election campaign back to tax at a time when the party's position on immigration is becoming increasingly controversial.

Crucially, the extra money expected to be raised by council tax revaluation is not included in Labour's spending plans.

This means the Tories can present their new policy as a tax cut without the risk of Labour accusations that it will lead to spending cuts.

The pledge is likely to be particularly frustrating for the Liberal Democrats. Their plans to scrap council tax completely are long established. Until the Chancellor's Budget in March, when the government announced the ?200 council tax discount for pensioners, neither Labour nor the Conservatives had competing policies.

Liberal Democrat local government spokesman Ed Davey said: "This is naked political opportunism and proof the Tories know they can't win this election."