By Richard Johnstone | 6 February 2014
Just over one-third of councils in England have so far agreed to accept a government grant to freeze or cut their council tax from April, latest figures from the Department for Communities and Local Government have indicated.
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Following yesterday’s announcement that town halls will have to hold a local referendum if they plan to increase the tax by 2% or more, Local Government Secretary Eric Pickles urged councils to accept the Whitehall freeze grant.
Councils are being offered the equivalent of a 1% increase on a Band D property if they hold down tax rates, and the grant is also being included in baseline funding for future years. This amounts to £550m available to town halls in 2013/14, Pickles said.
According to figures published by the DCLG, 129 of England’s 353 local authorities have so far agreed to accept freeze funding (36%), as have five police authorities and three fire authorities.
Pickles said the government had been working to give families greater financial security by keeping council tax down through the fourth successive offer of freeze money.
‘We have given extra funding to town halls to help freeze council tax and handed local residents new rights to veto big local tax hikes, so local people have the final say on the amount they pay.
“Since 2010, council tax bills have been cut by 10% in real terms across England and people haven’t been facing the threat of soaring bills. I would urge councils to take up the offer of additional funding to help freeze council tax this year to help their residents with the cost of living.’
In addition to the authorities named by the DCLG, Essex County Council has confirmed it will freeze the tax. The authority had been planning to propose an increase, but said that it was now able to hold rates down due to higher than expected council tax collection rates.
Council leader David Finch said: ‘A growing economy puts more people in work and so the Essex take of council tax has increased. It’s great news for Essex residents now able to enjoy a fourth consecutive year of council tax freezes.
‘Next week’s budget will invest in our people and our infrastructure because growth brings prosperity and I’m delighted that we can put more money in the pockets of hardworking people as well as delivering excellent services.’
