Council tax cuts could benefit first time buyers

08-Jun-2007

The government has unveiled local authority restructuring scheme that could see council tax cut in a move that would ease first time buyers' affordability concerns, it has been announced.

Potential homeowners already daunted by the prospect of high mortgage repayments and expensive energy bills could benefit if the proposals get the go-ahead.

Currently there are sixteen proposals across thirteen areas in the country undergoing consultation, though the government does not yet know which will be implemented.

"Re-structuring has the potential to make a real difference to local communities and cut council tax. But if there are more proposals that meet the criteria following consultation, than can be afforded under sound fiscal rules, then we must ensure that the proposals that go forward are the most cost-effective and deliver the greatest improvement in services," advised local government minister Phil Woolas.

"That is why we are publishing a consultation on the means for prioritising proposals today and asking stakeholders for their views," Mr Woolas continued.

Ministers have this week been accused of making it harder for homeowners to complain about council tax, though government officials claimed that the new appeals process in question would actually make lodging such complaints easier.

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