Plans for a second year's council tax freeze set out

Published on Tuesday, 15 November 2011 10:47
Posted by Scott Buckler

We know households are facing difficult times so we're helping keep living costs down with a second year's council tax freeze, Local Government Secretary Eric Pickles said today, as new scheme details were published

Estimates of the Government grant boost that every council in England would receive if they commit to holding or reducing average Band D council tax for a second year were published today.

This follows the announcement that Government has set aside an extra £805 million, of which up to £675 million will be available to local authorities in England to help keep council tax down for a further year.

This new support builds on the 2011-12 freeze offer taken up by all councils, boosting what they could get over four years to £3.3 billion if they hold council tax for a second year. The new scheme would mean that local taxpayers living in an average Band D home in England could once again save up to £72 compared to a 5 per cent rise in council tax on top of this year's council tax saving of up to £72.

The new voluntary scheme will be open to the same councils as last year. Councils that freeze or reduce their council tax next year will get a one off grant equivalent to raising their council tax by 2.5 per cent. Police, and single purpose fire and rescue authorities will get a 3 per cent equivalent, with the Greater London Authority and the City of London getting intermediate offers.

Eric Pickles said:

"Last year every council signed up to our council tax freeze, but with many families still facing difficult times we're rolling over our successful scheme so councils can keep a lid on bills for another year.

"Our two-year freeze promise, potentially worth up to £72 each year to Band D residents, is in stark contrast to the years before when council tax was allowed to double.

"Today every local authority can see how we'll back them to hold council tax steady for another year and leave millions of taxpayers with more of their hard earned cash in their pockets."

 

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