By Richard Johnstone | 26 March 2014
Two-third of councils have agreed to accept the government’s grant to freeze council tax from next month, Local Government Secretary Eric Pickles announced today.
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Figures published by the Department for Communities and Local Government have revealed that 235 of 353 councils in England will receive the freeze funding for 2014/15, based on holding down or cutting bills. Authorities have been offered the equivalent of a 1% increase on a Band D property in government grant if they freeze rates in both of the next two financial years, amounting to £550m.
According to the department, five police authorities and 11 fire authorities have also accepted the grant.
Pickles praised the councils that froze or reduced their bills for giving families greater financial security.
‘This government has been working to keep council tax down, giving hard-working people greater financial security,’ he said.
‘We have given extra government funding to town halls to help freeze council tax, which has cut bills by more than eleven per cent in real-terms [since 2010].This means people have more in their pocket, and are no longer facing the threat of soaring bills.’
When authorities increasing council tax are included, the average bill will rise 0.9% in cash terms, which amounts to a real-terms cut when adjusted for inflation.
Councils that choose to increase bills rather than accept the freeze grant can raise them by up to 2% before they have to hold a local referendum on the proposed rise. No council is proposing to hold a local vote for an increase above the 2% trigger, according to DCLG.
