Council tax overpayment claims

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Newly-released documents apparently reveal that the Government has been aware for at least two years that many homes are in the wrong council tax band.

The Sunday Telegraph quoted a report from a 2005 Council Tax Revaluation Board meeting at which objections to an announcement on the issue were recorded.

"Concern was expressed about the possible knock-on implications for billing authorities and adverse press coverage this could generate in the current climate," the report said.

It went on to say that officials would try to establish how many households were affected before "action" would be agreed by ministers.

The passage was blacked out in the released document but the text is said to be still visible through the marker ink.

Shadow local government secretary Eric Pickles said: "It is scandalous that the Government has found out that many homes could be wrongly banded, but have refused to correct these errors to avoid paying refunds and incurring bad coverage."

Experience in Wales suggests the number of homes in England which are in the wrong band could be as high as 400,000, according to The Sunday Telegraph.

A spokesman for the Department of Communities and Local Government said: "Whilst the Valuation Office Agency believe the overwhelming majority of council tax bands are accurate, anyone who has evidence that they are in too high a band can request a review and lower their banding if successful, they will also qualify for a rebate from their council."