After days of media speculation that plans to copy the Welsh council tax revaluation procedure in England would be delayed until after the next election, the Minister of Communities and Local Government, David Miliband yesterday confirmed the government had indeed decided to delay the process.

The minister said the delay would mean the issue could be considered as part of an inquiry into local authority funding currently being undertaken by Sir Michael Lyons.

"We have decided to postpone revaluation from 2007 so that revaluation can take full account of Sir Michael Lyons' further work. We do not believe that revaluation will take place in this Parliament," he said.

It is widely thought that the revaluation process will increase the council tax people pay and some authorities have already been looking forward to increased revenues. The Welsh home revaluation completed last year resulted in a third of homes moving up at least one valuation band and only 8% moving down.

The delays also apply to the Lyons enquiry, as the government has extended its remit. "Extending Sir Michael's remit will ensure that any proposals for reform of the funding system can be set firmly within the wider context of a clear, shared understanding of the role of local government, and of councils' accountability to service users, residents and taxpayer," said the announcement yesterday.

This is likely to cause uproar within local authority circles - and reasons to vacillate - as they have been expecting new ways to finance their operations to be announced under the Lyons review.

Preparatory work for a revaluation in 2007 is being stood down at the Valuation Office Agency, the government announced.