03.10.11
Council tax freeze extended
Chancellor George Osborne has confirmed a pledge, made in opposition, to extend the council tax freeze to 2012-2013.
The Government will use £805m of central funding, produced through efficiency measures and elimination of waste in Whitehall, to pay for the freeze.
The money will be offered to councils that limit spending rises to 2.5%, and could save the average family £72 per year. This move extends a similar policy made in the Coalition agreement, which saw all local authorities in England either freeze or reduce council tax bills over 2011-2012. The average band D council tax – the most common category – remained static at an average of £1,439.
Osborne is due to address the Conservative party conference later in Manchester, and will concentrate on plans for the economy. He told BBC Breakfast: “Instead of just keeping that money, we're going to use it to help families.
“It shows that this Government is absolutely committed to helping people through these difficult global times, absolutely committed to helping people with the cost of living, helping families not only get into jobs and stay in work, but also help them pay those family bills.
“This Government is not standing on the sidelines like some other governments are around the world, driven by events. We are getting on top of events, helping Britain through this incredibly difficult economic situation the world faces.”
However, Shadow Treasury Minister Chris Leslie said: “Out-of-touch ministers don't seem to understand that people are struggling with rising prices and energy bills now, but this policy means no help for another six months.
“It would mean just £72 for a typical household, which is a fraction of the extra £450 a year the Tory VAT rise alone is costing a couple with children.”
Further growth plans from the Government will be announced in November.
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