Treasury to help councils freeze 2012 tax

The government has set aside an extra £805 million to help freeze council tax bills for households. The support for local authorities, on top of the existing freeze, means that taxpayers living in an average Band D home in England could save up to £72 on a five per cent rise in council tax.

A second year’s council tax freeze will give real help to households in difficult times and this extra funding will make a positive contribution to those local authorities who wish to keep council tax down.

A new grant scheme will be open to all billing and major precepting authorities, including police and fire authorities, which decide to freeze or reduce their council tax next year. If they do, councils will receive additional funding, equivalent to raising their 2011-12 council tax by 2.5 per cent. Police and fire authorities will receive additional funding equivalent to raising their 2011-12 council tax by 3 per cent.

The Department for Communities and Local Government will shortly write to all English local authorities with full details of the scheme.