The leader of Oxfordshire County Council Keith Mitchell has joined pensioners in welcoming reports that the Government has postponed its council tax review of property prices.

It had been feared that the revaluation of millions of homes across England would mean major bill increases, especially in Oxfordshire where property prices have soared since the last valuation in 1991.

Mr Mitchell, pictured, who warned in March that the South would suffer more than the North under any review, said: "I'm extremely pleased that the Government has seen sense on this.

"Oxfordshire would have had one of the biggest rises in property values. This gives us breathing space."

All 22 million homes in England were due to be rebanded, based on their value on April 1 this year, with new designations revealed next September and the changes taking effect in 2007.

A revaluation of property prices in Wales last year resulted in a third of homes being moved up a tax band, according to the Conservative Party.

The level of council tax has proved a political hot potato for the Government with many pensioner groups at the forefront of protests.

News of a delay has been welcomed, but many pensioners still believe the council tax system itself needs to be overhauled.

Jean Davies, 77, of Whitehouse Road, a former chairman of the Oxford Pensioners' Action Group, said: "I would welcome a delay if they are having a think about the best way of collecting local money. But if they are going to do the revaluation later anyway, they had better get on with it."

John Bullivant, 82, of Leiden Road, Headington, said: "I just want some fairness. I am angry about the whole thing.

"It doesn't matter if five or six people are earning thousands of pounds each -- they pay the same as two pensioners living next door. It doesn't matter to me how much my house has gone up because my pension has stayed the same."

The Government U-turn was seized upon by political opponents over the weekend.

Tory spokesman Caroline Spelman said: "This is a massive Government climbdown in the face of Conservative opposition to council tax revaluation."

Liberal Democrat spokesman Sarah Teather said: "The present council tax system is unfair, unsustainable and beyond reform.

"It should be scrapped and replaced with a fair tax based on ability to pay."

Any decision on revaluation is likely to be postponed until Sir Michael Lyons completes an inquiry into local government funding at the end of the year.