Announcement

Frozen Council Tax will help with cost of living

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Local Government Secretary Eric Pickles welcomes the news today that councils have taken up the Government’s council tax freeze offer helping…

Local Government Secretary Eric Pickles welcomes the news today that councils have taken up the Government’s council tax freeze offer helping to keep this part of residents cost of living down at a critical time.

An independent survey published by the Chartered Institute of Public Finance and Accountancy (CIPFA) today has confirmed that council tax bills are to be frozen across England this year, thanks to the Government’s council tax freeze initiative.

The Chartered Institure of Public Finance and Accountancy’s survey estimates there will actually be a slight reduction of 35 pence on last year’s council tax level. The average Band D English council tax bill will be £1,438.87.

The Government’s own monitoring shows 333 councils in England have so far indicated that they will be taking up the Government freeze offer. A list of the councils is available to download at the bottom of the following page: http://www.communities.gov.uk/newsstories/newsroom/1854104.

Eric Pickles, Secretary of State for Communities and Local Government, said:

Council tax has doubled in the last decade. But the Government has frozen council tax, saving hard-working families and pensioners up to £72 this year. We have scrapped a council tax revaluation and we want to give local residents new rights to veto excessive council tax rises in the future. This is real help now to assist with the cost of living.

In the October Spending Review the Government confirmed that it would fund a council tax freeze in 2011-12, by providing a £650 million a year fund for local authorities over the Spending Review period. This offered authorities who do not put up their council tax a grant equivalent to increasing their council tax by 2.5 per cent.

The capping threshold in recent years was a 5 per cent council tax rise. Stopping such a rise in 2011-12 would therefore save a typical household up to £72. Should an average 2.5 per cent rise have occurred the saving would have been £36.