LOCAL MP Michael Mates has expressed alarm at reports of the Labour government's secret plans to increase council tax bills on homes with attractive features and home improvements. According to Mr Mates, as a testing ground for England, Labour Ministers are this month revaluing local tax bills in Northern Ireland. Under their new system, from April 2007, local tax bills will be a set at percentage of the house price and will be unlimited, like an annual stamp duty on every home. Internal government documents reveal that "under the new system, homes with scenic or 'premium views', adjoining parks or green spaces, or in conservation areas will pay higher taxes". It is proposed to use Ordnance Survey maps and council planning departments to identify these features. Mr Mates points out that "the internal and external specifications of the property will affect the tax bill. Patios, garden sheds, double-glazing, conservatories or extensions are 'site positive' features that will hike bills." The document is said to explain that "tax bills will be based on the house price of the property, and be unlimited, unlike the present 'banded' system of council tax. Local residents will be charged 0.78 per cent of their home's value each year - local councils can vary the precise rate". In East Hampshire, the local MP says it would mean a council tax increase of £749 per year for the average home. "Only Labour heartlands like Tony Blair's Sedgefield and John Prescott's Hull may pay less," said Mr Mates. "Northern Ireland is now being used as a testing ground for Prescott's tax inspectors and the levying of a new house price tax." In a statement this week, Mr Mates said he was "exceedingly alarmed that the inquiry into the future of local council funding has suggested that this house price tax would be a good way to fund local services." He added: "The consequence of lifting the current cap on the council tax would be a massive increase in the bill many families have to pay, not because their income has increased but simply because house prices have risen faster in Hampshire than in some other places. That is not a fair basis for charging for local services and it is one that must be resisted." l The average house price in East Hampshire was £262,416 last December. 0.78 per cent of that figure is £2,047 compared to the average Band 'D' council tax bill in the district which currently stands at £1,297.