Council tax bills will be frozen next year – as a result of a deal struck in the Spending Review. With the Treasury agreeing to set aside an extra £650 million all councils will be able to freeze bills next year – meaning local taxpayers living in an average Band D home in England could save up to £70. Hard working families and pensioners have seen their council tax bills more than double since 1997. But the new Government is standing up for hard-pressed local residents, providing special funding to help councils freeze their bills next year.

Further financial freedoms announced for councils will mean they can better protect frontline services like rubbish collections and care for the elderly. The new Government has already stopped the council tax revaluation which would have lead to higher council tax bills over this Parliament for many families. A new grant scheme will be open to all authorities, including police and fire authorities, which decide to freeze their council tax next year. If they do, they will receive additional funding in 2011-12, equivalent to raising their 2010-11 council tax by 2.5 per cent.