A COUNCIL leader is hoping people living in east Cleveland will receive a late but welcome Christmas present in the New Year.

Deputy Prime Minister John Prescott has announced that, under the terms of the Local Government Bill now beginning its passage through Parliament, he will introduce new powers to allow for variation in the number of council tax bands from the present eight.

Councillor Dave Walsh, leader of Redcar and Cleveland Borough Council, said he will be writing to Mr Prescott, encouraging him to act quickly.

He said: "I am really delighted with this pledge, as at present there is absolutely no relationship whatsoever between the value of a family's house and the council tax bands.

"At the moment, out of a total of 60,766 houses in our borough, 39,609 are in the lowest two bands (A and B) with only 8,140 in the highest bands from D to H.

"Yet, whilst council tax payers in bands A and B pay £732 and £854 per year, higher banded payers, in bands E and F, pay only £610 or £732 more - even though their houses are often worth over £100,000 more than the value of, say, an ex-council home or street terrace house, homes that are sometimes valued at less than £15,000."

He said: "It has long been a glaring anomaly that such huge disparities in our borough exist, and if there will soon be a power to vary or create new council tax bands then, in the interests of justice, it should be exercised.

"Hopefully, such a power could well mean lower council tax rates for the vast majority of our people living in this borough - something I know would be very welcome."

He will remind Mr Prescott that by keeping down the council tax level with no increase for the past two years, the borough council has tried to play its part in "bringing about social fairness".

"He can repay our efforts with a move to help the less wealthy households in our borough," Coun Walsh said.

Guisborough estate agents Reeds Rains said house prices are increasing so quickly the average price of a property on their books is now £90,000.