The government today dismissed as "scaremongering" Tory claims that a snoopers' charter was being planned for England which would see homeowners face financial penalties for refusing to let tax inspectors through their doors.

The Conservatives have seized on new powers intended for Northern Ireland - due to be discussed in parliament today - that would see residents who tried to prevent inspectors from evaluating their homes slapped with an initial £1,000 fine.

Further refusal would incur a £200 fine for each subsequent day that tax inspectors were prevented from doing their jobs.

Caroline Spelman, the shadow local government secretary, said today that Ulster was being used as a "testing ground" ahead of any future revaluation of properties in England.

"Labour craves these powers since they want to tax every feature of people's homes - including bedrooms, conservatories, double glazing and garden sheds," she claimed.

"For all of Labour's talk of human rights, these new 'Article 38' powers are the footprint of an oppressive and greedy government. Conservatives will resist these new authoritarian powers and will stand up for people's property, privacy and liberty."

The government dismissed the suggestion that Northern Ireland was being used as a guinea pig for England, pointing out that the province is still under the rates system, making direct comparisons with the council tax system operating in England, Scotland and Wales difficult.

"This amounts to little more than scaremongering. It is wrong to suggest that the government is using the current revaluation in Northern Ireland as a testing ground for England.

"Northern Ireland has a different local government finance system to England; for example, council tax was never introduced there, and different considerations apply." Northern Ireland is revaluating homes as part of a shake-up of its rates system.

The Tories strongly resisted the revaluation of homes in England - originally due to take place next year - to revise the relative property prices on which council tax bands are based.

The revaluation process was postponed indefinitely last year under the-then local government minister David Miliband, on the grounds that a review of the role and financing of local government headed by Sir Michael Lyons was already under way.

The Conservatives say that Sir Michael favours the idea of fining residents who stop tax inspectors entering their homes to evaluate the price of their property, a claim disputed by Sir Michael's spokespeople, who say that the proposal is just "one of the many options put forward".

Sir Michael's final proposals will be submitted to government this December.