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Hike in council tax bills after banding blunder 15 years ago



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Published Date: 29 September 2008
HUNDREDS of householders are facing a rise in their council tax bills after their homes were wrongly valued 15 years ago.
The blunder led to more than 500 homes in Musselburgh and Prestonpans being placed in the wrong council tax band in 1993.

The mistake, which was recently uncovered by the Lothians Joint Valuation Board, means annual council tax bills will rise by
around £160 from next month for those affected.

Twenty-nine homes put into a higher band by mistake will receive a refund of up to £2000.

Those who are paying more, however, will not have their payments backdated to 1993 and will only pay the increased rate from this year.

The error means East Lothian Council has missed out on hundreds of thousands of pounds in revenue during the past 15-year period.

Joan Hewton, assessor for the valuation board, said they had re-valued the homes after a number of people had appealed against their council tax valuation, complaining that neighbours living in similar houses were paying less tax.

She said: "We looked into the various bands and discovered there were inconsistencies. We looked at sales evidence and arrived at what we considered appropriate bands based on their values in 1991.

"There are always houses which fall between one band and another and it doesn't take much to put them in a different band."

More than 300 households in Musselburgh and 200 in Prestonpans will have to pay more tax.

It is understood a few houses are affected in a large number of streets across the two towns. The errors could have arisen because of slight differences in the size or number of rooms of houses in the same streets.

The news has angered many people in the local community.

James Yule, chairman of Prestonpans Community Council, said the elderly and people on low incomes could be hit hard by the rise.

He said: "I think someone should've realised this earlier.

"The last thing that people want is having to pay more money, especially in the current economic climate.

"This is going to be a real shock for people. I feel sorry for those who are affected. We need to look at what help is available for them."

Councillor David Berry, leader of East Lothian Council, said: "A letter will be sent by the assessor at the end of this month giving details about the reason for the change.

"We would recommend that people wait until they have this letter confirming any changes before contacting the Lothian Valuation Joint Board.

"Anyone who is currently receiving council tax benefit will have their benefit increased appropriately."





The full article contains 449 words and appears in Edinburgh Evening News newspaper.
Page 1 of 1

  • Last Updated: 29 September 2008 11:44 AM
  • Source: Edinburgh Evening News
  • Location: Edinburgh
  • Related Topics: East Lothian
 
1

Artemis,

29/09/2008 12:03:57
Mr Yule - if someone had realised earlier, bills would have gone up earlier, and you'd have been paying more for longer.
2

Mr Fuzzy,

Edinburgh 29/09/2008 14:26:44
What I don't understand is how apartments with the same number of rooms on the same floor and with equivalent views can have different council tax bands.
3

Skip McClendon,

29/09/2008 14:43:47
Well, Council tax bandings are all nonsense anyway. What's the value of property in Band A? About £27,000 or something? You can't even buy a garage for that.
4

valleyjim,

darkest fife 29/09/2008 15:42:06
#3 Aye you yu fanni. Whit planet ur you fi'? We kin git a penthoos ower here fir that kind ae shekels.
5

fresian,

edinburgh 29/09/2008 16:53:38
Nr 2, 15 years ago when the valuation was made, £27000 would have bought a semi decent starter flat in certain parts of East Lothian. In fact, you could have bought Prestonpans for that back then.
6

Julian.,

edinburgh 29/09/2008 22:15:28
#3 Skip

Pay attention, these are 1991 prices. What would you have them do. Revalue every year? With all the expense that entails.

What are these folk moaning about anyway. They've saved thousands over the years by paying too little. They should be taking the valuers out to a slap up dinner. Honestly, some folk are never happy.

Of course a local income would have bypassed all these problems.
7

Mr Fuzzy,

Edinburgh 30/09/2008 01:56:25
#5
Yes, I know - my parents bought their first flat for £6000 (1960's), then during the oil boom, it went up to £90000 (1980's). The current owner bought out the rights to the attic and converted the property into a penthouse flat worth over £220000 (2000's).
8

Skip McClendon,

30/09/2008 10:44:28
#6

Thanks for the history lesson, Jools.

Yes, I am aware that, legally, Council Tax bandings are set at the price your house would have fetched if sold in 1991. But that is just nonsense. For starters, my house didn't exist in 1991 would therefore have fetched nothing on the open market. Does that mean I get a Council Tax exemption?!?

No, I don't expect them to revalue every year, but it's not like 1991 was just last year. It was 17 years ago. Surely, they can update the bandings at least once every 5 or 10 years to better reflect true house prices. But, of course, since it's the Government we are all just supposed to sit back and accept it.
9

Julian.,

edinburgh 30/09/2008 22:17:00
Skip,

Anytime mate.

I'm interested to know what they do with houses built since 1991. I agree, seems sensible to revalue every so often to take account of varying house price rises.
10

Asil,

musselburgh 01/10/2008 08:11:16
would it not be a good idea to increase the values on the bands every 3 years or so to keep up with increasing house prices? You should only really move bands if you extend or add rooms. I bought flat 10 years ago for £45k, now valued at over £100k, no extra rooms, not rebulit in another area so why should I pay more council tax? I still get my bins emptied on the same day byt the same men..... If they move people up bands, it the bands would have to go on for every or everyone would end up on the same band, whether you lived in a 2 bedroom flat or 5 bedroom detached, makes no sense to me.

 

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