Council Tax Freeze

Councils could be financially protected in the future if they freeze council tax this year, communities secretary Eric Pickles has hinted.

Addressing a New Local Government Network conference in London today, Mr Pickles said extra grant support for councils which sign up to a further freeze extending to 2012/13 would be ‘a key consideration in funding for local government at the next spending review’.

Mr Pickles praised councils already agreeing to a freeze - particularly West Oxfordshire and Hammersmith and Fulham which are preparing for a council tax cut.

But the move will leave councils which have announced plans increase council tax by a small amount – including Surrey County Council - out in the cold, as it will negate the argument that they face a ‘cliff edge’ to their funding when the incentive cash dries up.

Many councils have expressed their fears that the Government’s cash incentive to freeze the levy will disappear, and they will face a huge hike in taxes later to claw back their tax base.

Mr Pickles accused councils that have put forward an increase as giving ‘an almighty kick in the teeth’ to working families who are struggling to pay their bills. He suggested that low increases are being levied in a bid to avoid local referendums.

Mr Pickles told delegates: ‘Councils who take our offer and freeze tax are protecting their residents, and cutting some slack to hard-working families. Those who don’t are piling up the bills and the stress and the pressure at a time when people could really do without it. They’re giving their residents an almighty kick in the teeth.

‘Councils who go for the biggest rise they can, without triggering a local vote, deserve everything they get next time residents do get a chance to have a say where it really counts: the ballot box.’