The review says some taxpayers should get an automatic rebate

Junior minister Baroness Andrews told peers it was "nonsense to read anything sinister" into the fact the government had not produced an "instant response".

Among recommendations in Sir Michael's review were new council tax bands for the cheapest and most expensive homes.

Tory Lord Bruce-Lockhart said the government had dismissed the report, on the day it was published last month.

'Important issues'

The peer, who is also chairman of the Local Government Association, told the House of Lords: "Despite five years of professional and valuable work, on the day of publication the government dismissed out of hand in a press statement many of Sir Michael's recommendations.

"That was very unfortunate. There are important issues here."

Conservative peer Baroness Hanham also said there were issues which needed further debate.

There is no magic bullet. Government needs to take a developmental approach to reform Baroness Andrews

"The report raises again the question of revaluation of property and increases in the number of bands. We object to both," she told peers.

"The revaluation of 2005 was put on hold and is not likely to be considered again before the next general election. It was clear it was going to be very unpopular.

"But we know preparations for revaluation are well in hand and data bases on property values are being prepared."

Report 'buried'

The report, published on 21 March, called for new council tax bands for the most expensive and cheapest homes.

On the day, Local Government Minister Phil Woolas said the government would consider some proposals.

But he rejected others, saying the government would not introduce a tourist tax or give up its right to cap the spending of local authorities. And he reaffirmed the government's commitment not to revalue council tax during this parliament.

Earlier in the week shadow local government secretary Caroline Spelman, accused chancellor Gordon Brown of trying to "bury" Sir Michael's report, by publishing it on Budget day.

But on Thursday junior local government Minister Baroness Andrews thanked Sir Michael for the "scrupulous way" in which he had conducted the inquiry.

She said the government had "tried to clarify in our immediate response some of the things which we are not going to pursue."

She added: "The response to the report must come in a reflection in policy.

"Far from shelving Lyons, we are implementing as quickly as possible much of what he has recommended," she said.

"There is no magic bullet. Government needs to take a developmental approach to reform."

She said that evidence to the inquiry had shown that revaluation of properties alone would not significantly ease the burden on the poorest householders.

And she said revaluation was unlikely to be considered before 2010.