Homeowners have welcomed moves to postpone the revaluation of thousands of properties in Sussex under a council tax shake-up.

Under the Government's original plans, millions of homes throughout England were to have been revalued to keep pace with rocketing property prices.

It had been feared that council tax bills in some of the poorest parts of Sussex, including Hastings and Brighton, would rise sharply.

Research showed the average household in 219 of the 320 local English authorities would be moved to a higher band, sparking huge council tax hikes.

But it emerged at the weekend that proposals to revalue millions of homes in England by 2007 were to be suspended, possibly until after the next election.

Yesterday, Bob Harris, 74, of Hastings-based People Against Rises in Council Tax, said: "This is really encouraging news and demonstrates how daft a plan it was.

"But we all need to pool our resources to ensure it definitely does not go ahead because it would have a devastating effect on pensioners and people on low incomes.

"Like many other pensioners, my income does not rise in line with council tax increases. Therefore, every year our pensions are being devalued.

"We understand there have to be taxes to pay for policing, street lighting, refuse collection and such like.

"But we believe our council taxes could be a lot less if local government found money from other areas, such as the wasteful amount that goes on management consultants."

In July, mortgage lender Halifax forecast the impact revaluation would have on homes in Sussex based on a recent revaluation in Wales.

In Hastings, homes in Band B, worth an average of £50,105 in 1991 but now worth £165,000, could have been moved up to Band C.

People in an average Band D household in Brighton and Hove pay £1,161 a year but if they were moved up to Band E, their bill could soar to £1,420, a rise of £259.

The last check on property values was carried out in 1991, when the average UK house price was only £73,000.

It has now soared to £180,000 and ministers insist it is time to update property values to keep pace.

The Office of the Deputy Prime Minister, which is responsible for local government, said a statement would be made at the appropriate time.

However, the Tories accused the Government of a huge U-turn while the Liberal Democrats renewed their pledge to scrap council tax altogether.

Tory spokeswoman Caroline Spelman said: "This is a massive climbdown.

"The Government has shown great weakness to cave in ahead of its review, and is clearly in total disarray over the issue."

Lib Dem spokeswoman Sarah Teather said: "The Government has yet again failed to make the tough choices to deal with this ticking time bomb.

"The present system is unfair, unsustainable and beyond reform. It should be replaced with a fair tax based on ability to pay."