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Last Updated: Wednesday, 14 March 2007, 05:54 GMT
Bid to correct 'council tax lies'
Council Tax notice
Speculation has been widespread ahead of a report on the tax
The government says a new document aims to correct what it says are untrue or misleading stories about council tax.

Local Government Minister Phil Woolas has denied claims that tax will go up when people improve their homes, or that there is "revaluation by stealth".

The Times has claimed a forthcoming report on council tax will recommend extra bands meaning higher tax for homes worth 750,000 and over.

But Mr Woolas dismissed the claim as "pure speculation".

A spokesman for Sir Michael Lyons's inquiry into council tax - due to report on 21 March - refused to comment on what would be recommended.

Sir Michael's independent review was commissioned by Chancellor Gordon Brown and Deputy Prime Minister John Prescott in 2004.

Mr Woolas said: Sir Michael Lyons is due to publish his findings at the time of the Budget and we will respond in due course.

"The Times misunderstands how council tax is calculated. Council tax is based on the relative and not the absolute value of your home."

The newspaper suggested money raised from the new top rungs would be used to finance a 130 cut in the average bill of the poorest householders.

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