THE report 'Homes Revaluation is put on hold' (LET, September 17) was good news but before householders rejoice at Labour's U-turn on the council tax revaluation planned for 2007, they should note that postponement is not a cancellation.

It simply means 'third term' Labour tax rises will be delayed -- the clock has been reset but the tax timebomb is still ticking.

During the General Election campaign when Conservatives opposed the revaluation, Tony Blair accused them of "an act of desperate opportunism".

But it now appears the prospect of rising bills for millions of householders has persuaded the Prime Minister to be just as opportunistic.

At the Second Reading of the Local Government Act 2003, which introduced provisions for revaluation in England and Wales, the Government pledged 'Revaluation will not lead to increases in council tax yield'.

But this year in Wales, where revaluation is two years ahead of England, one in three homes,have moved up one or more council tax bands.

Tax revenues have soared by 10 per cent in the first year alone -- with further hikes due as Transitional Relief is phased out.

The Government's first inquiry into the reform of local taxation called for new, higher council tax bands and outlined the possibility of a 10-band system, where 'homes in bands above D would pay more.

Sir Michael Lyons, a former Labour councillor, is conducting a second inquiry, yet the Government has accepted he cannot review local government finance without considering the proper functions of local government itself -- and it is a scandal that the Government has spent around £60million preparing for the revaluation which will not now take place.

The revaluation was said by ministers to be necessary to ensure the system remained 'fair'.

Pensioners and people on fixed incomes, who are hit every year by higher than inflation tax rises, would have faced a double blow if their homes had moved into higher bands.

In England, the tax rose from £8.8billion in 1996-97 to £16.4billion in 2003-04, up £7.6billion or 86 per cent. In Blackburn, the Band D charge of £1,212 is near the top of the 47 Unitary Authorities -- and Labour will now take an increase equivalent of £338 per household.

Council tax was not a contentious issue when it was introduced.

The problem is the year on year increases under Labour's profligate spending -- and the question people must ask is whether their money is buying improvements in local services that are really necessary, or activities that are politically desirable.

Councillor J H HIRST, Beardwood with Lammack Ward.