VALE Royal Borough Council will soon have the power to force certain rate payers to pay up to 40% more on their Council Tax bill.

Provisions under a new local government act would hit people in North-wich and Winsford with more than one home the hardest, with the removal of a string of 'tax breaks'.

They will allow Vale Royal councillors the discretion to reduce the level of discount on second homes from the current 50% to a minimum of 10% and to remove the discount on long-term empty and unfurnished properties altogether. If these powers are invoked, those affected will be required to pay more in Council Tax from the financial year after the decision is made to adopt the provisions.

But at a meeting of the borough council's executive group to be held on January 8, Steve Downs, head of financial services, is expected to ask councillors to defer any decision to change tax breaks on second homes and long-term empty properties until at least November 2004 to allow time for research to be undertaken.

Council chiefs say a tax levy of 90% on second-home owners rather than the current 50% levy would generate an additional £130,000, of which Vale Royal Borough Council would be able to keep about £14,000.

Any additional income generated by imposing higher tax levels would be retained locally by the borough council and authorities such as the county council and Cheshire Police Authority.

If a decision was made to reduce or remove the discount of long-term empty properties, extra income would not be held locally but at a national level and redistributed.

It is proposed firm recommendations on the issues will be made in advance of the Council Tax assessment for 2005-06 so any changes to the discounts can be incorporated into the council's calculations.

In preparing the recommendations, work will be undertaken in a number of areas, including the effect on the local housing market and cost benefit analysis. It is expected this research work will be finished by September.

Experience 'shows fears are unfounded'

CLAIMS Council Tax bills would rise if three unitary councils are set up in Cheshire under Boundary Committee proposals 'bear no relation to past experience', according to the chief executives of the county's six borough councils.

In a move to reassure people in the face of claims by county councillors, the chief executives stressed that when Warrington and Halton broke away from county council control in 1997, Council Tax levels immediately fell.

Anne Bingham-Holmes, chief executive of Vale Royal Borough Council, said: 'Both the Boundary Committee and the Office of the Deputy Prime Minister have recognised that it is difficult to quantify any potential costs or savings relating to newly created authorities.'

The Boundary Committee examined the costs of 'being in business' - such as money spent on elections and councillors and drawing up plans to meet Government requirements. Costs ranged from £10.5m for a single authority to £16.8m for three authorities. The current comparative cost for the existing two-tier structure is £30m.

Mrs Bingham-Holmes added: 'Obviously the cost of employing one chief executive for a single authority will be cheaper than three chief executives for three councils. However, the Boundary Committee has agreed that it could have recognised a more comprehensive range of costs.

'The costs for a single council for Cheshire do not include, for example, councillors' costs and expenses for travelling to meetings. Nor do they include the potentially considerable administration costs for 12 area committees which the county council has proposed.'

The Boundary Committee has drawn up three options for people to have their say on - one authority for Cheshire (effectively Cheshire County Council), two authorities or three authorities, the latter of which would see Vale Royal and Crewe and Nantwich unite, while Middlewich would be served by Congleton and Macclesfield borough councils joining together.

A period of public consultation on the three options will continue until February 23. Residents and organisations are being encouraged to send their views to the Boundary Committee.

The responses will help to inform the Boundary Committee's recommendations to the Office of the Deputy Prime Minister, to be submitted by May 25. For more information on the local government review, visit www.boundarycommittee.org.uk.