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Government bids to freeze council tax for second year

Tuesday, 15 November 2011 11:15 AM

The government has revealed details of its plans to freeze council tax for a second year in a row.

Communities secretary Eric Pickles said he was setting aside an extra £805 million - £675 million of which is for England – to enable local authorities to keep down the tax.

And it means anyone living in an average Band D home in England should save £72 compared to the five per cent tax increase they might have expected.

The average Band D council tax bill in England is £1,439 this year. Averages range from £1,308 in London to £1,399 in metropolitan areas to £1,484 in shire areas.

However, the scheme is voluntary and the Local Government Association has warned that councils will need to think through the financial implications carefully before deciding whether to accept.

Eric Pickles said: "Last year every council signed up to our council tax freeze, but 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.

“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."

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