THE leader of one of Britain's highest-charging council tax authorities has welcomed Government plans to make the system fairer.

Up to last March, Redcar and Cleveland was the second most expensive council tax area in the country. It has since slipped to fourth, with a frozen band D rate of £1,080.99.

Now people living there, and elsewhere in the North-East, are in for a better deal under new Government plans to divide the bottom housing band, A, into two. The move comes as part of a full valuation review of the nation's housing stock by Local Government Minister, Nick Raynsford.

Councillor Dave Walsh, Redcar and Cleveland Borough Council's leader, said: "This is firm evidence of a Labour Government acting to reduce wealth inequalities.

"In Redcar and Cleveland, over 28,000 of our 60,000-odd homes are in band A, with another 11,000 in band B.

"It is clearly right that these families, who are either on benefits or who earn far less than the national average income, should be given some relief from their present level of council tax.

"The revaluation exercise will also benefit areas like Teesside at the expense of wealthier parts of the country, such as London and the South-East. It is wrong for us to be subsidising the better-off, and those who have benefited from soaring house values in the South."