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15 November 2011

Council tax freeze extended to 2012-13

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by Gill Montia

Council tax freeze extended to 2012-13

The Government is encouraging councils in England to freeze Council Tax for another year.

With every council having signed up to the current freeze, details of a new scheme have been published showing how councils can benefit if they commit to holding or reducing local tax for average band B and D homes.

Ministers have set aside an extra to £675 million to ease the way for councils and save households living in average B and D band properties up to £72 in 2012-13 (compared to a 5% rise in the tax) on top of a similar saving in 2011-12.

Councils that freeze or reduce council tax next year will get a one off grant equivalent to raising council tax by 2.5%; police and single purpose fire and rescue authorities will get a 3% equivalent, with the Greater London Authority and the City of London getting intermediate offers.

Local Government Secretary, Eric Pickles, comments: “With many families still facing difficult times we’re rolling over our successful scheme so councils can keep a lid on bills for another year.”

He adds: “Today every local authority can see how we’ll back them to hold council tax steady for another year and leave millions of taxpayers with more of their hard earned cash in their pockets.”

Official figures show council tax bills hitting £1,439 on B and D in England in 2010-11, having risen by over 100% since 1997-98, or an extra £751 a year on a B and D home.

Since all other bands are set as a percentage of B and D, homes in every band will have seen their bills double.

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