£2.1m bonus for council-tax freeze

OLDHAM Council will be handed an extra £2.1million if it freezes council tax for a second year.

Chancellor George Osborne announced at the Tory party conference last month that the freeze would bring help for hard-working households and pensioners.

Yesterday, the Government published figures on how much councils, fire authorities and the police will be allocated if it freezes the cost to households.

Communities secretary Eric Pickles said keeping council tax at the same level will be a £77 saving for Oldham households, based on a Band D property.

The grants, payable for one year only, are worth the equivalent of a 2.5 per cent hike in council tax for local authorities and 3 per cent for police and fire services.

In addition to Oldham Council’s £2.1million, Greater Manchester Police Authority will receive £3.5million and Greater Manchester Fire £1.2million.

Mr 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. Our two-year freeze promise, potentially worth up to £72 each year to Band D residents, is in stark contrast to the years before when council tax was allowed to double.”

As in the current year, councils will have to restrict their budgets to the equivalent of a 2.5 per cent council tax increase to be eligible for a government grant to effectively freeze bills.