SWINDON is one of the few south west towns expected to escape soaring bills caused by an overhaul of council tax, new research has shown.

The lower than average house price increases in the town will mean homeowners are not expected to be presented with higher council tax bills when the system is reformed over the next 18 months.

It is believed hundreds of thousands of homes across the country will be moved up to more expensive council tax bands following a nationwide property revaluation.

Current council tax calculations are based on house values which are 14 years out of date.

It is understood the Government is currently asking local authorities to make new valuations, taking into account the house price increases since 1991.

But the first revised council tax bills will not land on doormats in the town until 2007.

Local Government Minister Nick Raynsford has said homes will move into higher bands if they have increased in value by more than the national average of 160 per cent.

However, research by Liberal Democrats based on house price statistics by the Halifax shows that house prices in Swindon increased by 139 per cent on average below the national average and the lowest average increase since 1991 in the south west.

The figures show that 81 per cent of towns in the region are expected to see increased council tax bills with Swindon one of only 12 towns due to escape paying more.

In contrast, council tax hikes are expected in Stroud and Westbury, where house prices have increased by 205 per cent and 223 per cent respectively.

Swindon Council leader Coun Mike Bawden (Con, Old Town & Lawns) said: "If this proves to be correct I am absolutely delighted for the taxpayers who won't have to face an increase in council tax.

"We must wait and see and keep our fingers crossed that it is correct and that properties in Swindon are below the 160 per cent increase."

Coun Nick Martin (Con, Shaw & Nine Elms), cabinet member for finance, said: "On the surface it sounds positive. It will be interesting to read the report.

"If everyone went up one band it will be pretty much the same for everyone. If everyone moves bands together, fine. If nobody moves, as this report suggests, that's good news as well.

"But where we would have problems would be if certain parts of the town stay the same and other parts change because then you would get a change in bills that would cause a great deal of discomfort.

"The problem with rebanding is people know where they are now and how much they will have to pay. Rebanding courts uncertainty and people get very worried about it."

l This week Swindon residents learnt they are likely to face a council tax of just three per cent more than last year. The rise which means £28 extra for an average band D house has been agreed by cabinet but is awaiting final approval by full council on February 21.

"In a way it's not about the band, it's about how much we charge for each band.

"We look to band D, the average band and the important thing to residents will be what we charge for the average band.

Lib Dem spokesman Ed Davey MP said: "The Government claims council tax revaluation will make the system fairer.

"But this research shows it will be arbitrary, random and unfair, with low earners forced to pay even more.

"The people of the south west are about to be penalised for the market forces that have pushed up house prices in the region."

In a speech on the council tax changes earlier this year, Mr Raynsford said: "Only where the change in a property's value is significantly above or below the average is it likely to change bands."