Mr Evans believes the council went to the department of the environment last week to discuss the removal of capping, which would help them pay their multi-million compensation to developers Slough Estates.
The MP says the lifting of capping would create an unacceptable situation.
He declared: 'This Labour authority would have the opportunity to tax each household up to £1,500 each to pay the debt that they incurred through deceit and incompetence'.
The council still owes Slough Estates £38 million. Mr Evans said it must find some other way of paying this other than through council tax.
Melanie Johnson, Labour prospective parliamentary candidate for Welwyn and Hatfield, says Mr Evans's figures are based in fantasy land and claims he has an ulterior motive.
She commented: 'I think this is just showing he is putting his own interests within the Tory party over the interests of the local residents in Welwyn Hatfield'.